By Amol Sharma
Chase Carey, the president and chief operating officer of 21st
Century Fox Inc., on Monday agreed to a two-year employment
contract extension, ensuring the media company will retain an
experienced executive during a period of intense change in the
entertainment industry.
Mr. Carey, 60 years old, has been the No. 2 executive at Rupert
Murdoch's media company since 2009. His contract was set to expire
June 30, and his employment status had attracted some attention and
speculation on Wall Street, where he is well regarded as being a
shrewd, cost-focused operating executive.
His new contract is only half the length of his last four-year
agreement, which took effect in 2010. And while the new contract
lasts through June 30, 2016, Mr. Carey has the right to leave as
early as the end of December 2015, provided he gives six months'
notice.
In an interview, Mr. Carey said he would prefer to not have a
contract, and that "flexibility" is important to him.
"My general view is you should be in a job like this as long as
you enjoy the challenges and the company wants you to do it," he
said. "I very much enjoy the challenges today and look forward to
continuing to take this company into the future." He said he
wouldn't rule out extending his contract further after two
years.
Mr. Carey is extending just a few months after two of Mr.
Murdoch's sons were elevated to more prominent roles at the
company. In March, James Murdoch, 41, was promoted to be co-chief
operating officer alongside Mr. Carey and 42-year-old Lachlan
Murdoch was made nonexecutive co-chairman alongside his father.
"One of the biggest responsibilities for me is to make sure we
grow the next generation of leadership of the company," Mr. Carey
said. "It's an ongoing process. The moves with James and Lachlan
were a step towards that."
21st Century Fox was formed last year from the split of News
Corp into two companies. The company housing the entertainment
businesses changed its name to 21st Century Fox, while the
publishing assets, including The Wall Street Journal, retained the
News Corp name. Rupert Murdoch is chairman of both companies and is
chief executive of 21st Century Fox.
Mr. Carey is a veteran TV executive who has held a variety of
roles in Mr. Murdoch's media empire since 1988. After News Corp
acquired a controlling stake in DirecTV in 2003, Mr. Carey became
CEO of the satellite TV firm. In 2009, more than a year after News
Corp sold its DirecTV interest, Mr. Carey returned to News Corp to
succeed Peter Chernin as the No. 2 executive to Mr. Murdoch.
Mr. Carey will help shape how 21st Century Fox reacts to a
changing landscape in which the biggest pay TV distributors,
including Comcast Corp. and DirecTV, are growing larger through
consolidation. Many analysts expect media companies to pursue their
own deals to maximize leverage, so that they can wring the highest
possible carriage fees for their TV channels. 21st Century Fox is
seen by some observers as a potential acquirer, though Mr. Carey
declined to comment.
The company is exploring a plan to sell its holdings in European
satellite operators Sky Italia and Sky Deutschland to Britain's
BSkyB, a company in which 21st Century Fox has a 39% equity stake.
That transaction could net roughly $9 billion to $10 billion in
cash after taxes, people familiar with the matter say. One
important element in any deal would be valuable Italian soccer
rights, which Sky Italia is in the process of trying to renew, the
people said.
Mr. Carey's compensation will stay flat over the term of the new
contract. In fiscal 2013, his total compensation was $27 million,
including a salary of $4.05 million and stock awards of about $13
million. "I'm compensated extraordinarily well," he said. "At the
end of the day you don't do the job for money."
Write to Amol Sharma at amol.sharma@wsj.com
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