Case: Executive Compensation/Fiduciary Duties (Del. Ch.)

A Delaware Chancery Court granted Rupert Murdoch and his sons’ motion to dismiss a shareholder challenge to the $82.4 million in bonuses they got when selling Fox’s film and TV assets to Walt Disney Co. for $71.6 billion. In addition to the Murdochs, the shareholders sued the compensation committee of Twenty-First Century Fox Inc., accusing it of breaching its duties by giving the Murdochs the stock grants as part of an incentive award for senior executives. The court held that the complaint failed to make factual allegations suggesting a causal link between the Murdochs’ receipt of the compensation awards and ...