Lachlan's Layoff Payoff Bound by Non-Compete Strings

08 August 2005

Any pain felt by Lachlan Murdoch when he formally quits News Corporation at the end of this month will be anesthetized by a multimillion dollar injection.

Almost $7 million (€5.7m; £3.9m) in severance pay will dull any pangs of remorse felt by the setting son, while the symptoms of post-NewsCorp-deprivation trauma will soothed by an additional bonus of between $5m and $7m dependent on earnings per share.

This generous application of shareholders' moolah is to ensure that Murdoch minor, whose departure is entirely voluntary, does not decamp to a competitor within the next two years. Also that he remains available to 'advise the company' during that period.

And to facilitate his advisory services, an office will be put at his personal disposal at the company's Australian unit in Sydney, to whose beachside environs he is about to return.

The terms of Lachlan's payout require that he will not "engage in business which is directly competitive with any business carried on by the company [NewsCorp] or any of its affiliates".

And on expiry of that two year term, he cannot "directly or indirectly induce or attempt to induce any senior employee of the company or its affiliates to engage in a competitive business".

Data sourced from Sydney Morning Herald; additional content by WARC staff