Rupert Murdoch, His Son Lachlan and Other Fox Executives Will Take Pay Cuts

Rupert Murdoch’s Fox Corporation, the owner of Fox News and the Fox television network, announced pay cuts to its executive ranks that will affect 700 employees as it worked to mitigate the effects of the coronavirus outbreak.

The Fox Corporation chief executive Lachlan Murdoch, the elder son of Rupert, made the announcement in a memo sent to the company’s 7,700 workers on Wednesday.

“While we don’t know exactly when we will return to normal and full operations across the company, we have decided to take several new actions to ensure that we remain strong and are well-positioned when this crisis recedes,” Lachlan Murdoch said.

He and the family patriarch will forgo their entire salaries through September, though most of their compensation comes from stock awards and bonuses. Rupert Murdoch makes $5 million in salary but his compensation tops $29 million with incentives and stock. Lachlan Murdoch makes $3 million in salary, with an additional $20 million coming from stocks and bonuses.

Fox, which will report its earnings for the first three months of the year on May 6, is expected to see a 22 percent jump in revenue to $3.3 billion, according to a survey of analysts by S&P Capital IQ, partly on increased licensing fees for its channels such as Fox News.

But the company has taken some hits to its advertising business after its broadcast division lost key sports programming, including Major League Baseball, and NASCAR, a big ratings draw.

Other high level executives, including John Nallen, the chief operating officer, Viet Dinh, the head of legal, and Steve Tomsic, the chief financial officer, will also forgo their salaries, though they too stand to benefit from many more millions in stock and bonuses. The company should save about $6 million with those reductions, based on filings with the Securities and Exchange Commission.

Executives who report to Mr. Murdoch will see a 50 percent reduction in pay for the same period, including the chief executive of Fox News, Suzanne Scott, and those working at the level of vice president will have their salaries reduced by 15 percent, but only from May through July. The company is also suspending pay raises for all employees and its board of directors.

Lachlan Murdoch stressed the importance of helping front line workers impacted by the coronavirus and suggested that employees could try “virtual volunteering.”

His call for a work force effort against the virus stands in contrast to how some Fox on-air personalities have talked about the pandemic. In March, Trish Regan, a Fox Business anchor, described concerns about the virus as a “scam” fueled by President Trump’s political opponents; her show went on hiatus, and she left the network weeks later. More recently, the Fox News hosts Jeanine Pirro and Laura Ingraham have promoted anti-lockdown rallies across the country.

In his memo, Lachlan Murdoch said, “As a company, we have a responsibility in this moment to help each other and those in need and we are using our platforms and resources to inform our viewers and to give back to our audiences.”

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  Updated April 11, 2020

  
  
  • 
    

    When will this end?

    
    

    This is a difficult question, because a lot depends on how well the virus is contained. A better question might be: “How will we know when to reopen the country?” In an American Enterprise Institute report, Scott Gottlieb, Caitlin Rivers, Mark B. McClellan, Lauren Silvis and Crystal Watson staked out four goal posts for recovery: Hospitals in the state must be able to safely treat all patients requiring hospitalization, without resorting to crisis standards of care; the state needs to be able to at least test everyone who has symptoms; the state is able to conduct monitoring of confirmed cases and contacts; and there must be a sustained reduction in cases for at least 14 days.

    
    
  
  
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    How can I help?

    
    

    The Times Neediest Cases Fund has started a special campaign to help those who have been affected, which accepts donations here. Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities. More than 30,000 coronavirus-related GoFundMe fund-raisers have started in the past few weeks. (The sheer number of fund-raisers means more of them are likely to fail to meet their goal, though.)

    
    
  
  
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    What should I do if I feel sick?

    
    

    If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.

    
    
  
  
  • 
    

    Should I wear a mask?

    
    

    The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.

    
    
  
  
  • 
    

    How do I get tested?

    
    

    If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.

    
    
  
  
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    How does coronavirus spread?

    
    

    It seems to spread very easily from person to person, especially in homes, hospitals and other confined spaces. The pathogen can be carried on tiny respiratory droplets that fall as they are coughed or sneezed out. It may also be transmitted when we touch a contaminated surface and then touch our face.

    
    
  
  
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    Is there a vaccine yet?

    
    

    No. Clinical trials are underway in the United States, China and Europe. But American officials and pharmaceutical executives have said that a vaccine remains at least 12 to 18 months away.

    
    
  
  
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    What makes this outbreak so different?

    
    

    Unlike the flu, there is no known treatment or vaccine, and little is known about this particular virus so far. It seems to be more lethal than the flu, but the numbers are still uncertain. And it hits the elderly and those with underlying conditions — not just those with respiratory diseases — particularly hard.

    
    
  
  
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    What if somebody in my family gets sick?

    
    

    If the family member doesn’t need hospitalization and can be cared for at home, you should help him or her with basic needs and monitor the symptoms, while also keeping as much distance as possible, according to guidelines issued by the C.D.C. If there’s space, the sick family member should stay in a separate room and use a separate bathroom. If masks are available, both the sick person and the caregiver should wear them when the caregiver enters the room. Make sure not to share any dishes or other household items and to regularly clean surfaces like counters, doorknobs, toilets and tables. Don’t forget to wash your hands frequently.

    
    
  
  
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    Should I stock up on groceries?

    
    

    Plan two weeks of meals if possible. But people should not hoard food or supplies. Despite the empty shelves, the supply chain remains strong. And remember to wipe the handle of the grocery cart with a disinfecting wipe and wash your hands as soon as you get home.

    
    
  
  
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    Can I go to the park?

    
    

    Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea.

    
    
  
  
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    Should I pull my money from the markets?

    
    

    That’s not a good idea. Even if you’re retired, having a balanced portfolio of stocks and bonds so that your money keeps up with inflation, or even grows, makes sense. But retirees may want to think about having enough cash set aside for a year’s worth of living expenses and big payments needed over the next five years.

    
    
  
  
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    What should I do with my 401(k)?

    
    

    Watching your balance go up and down can be scary. You may be wondering if you should decrease your contributions — don’t! If your employer matches any part of your contributions, make sure you’re at least saving as much as you can to get that “free money.”

    
    
  
  

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Rupert Murdoch, His Son Lachlan and Other Fox Executives Will Take Pay Cuts

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