BSkyB paid chief executive James Murdoch £2.17m in 2004

LONDON - James Murdoch, the chief executive of BSkyB, was paid £2.17m before pension contributions last year.

The total included a £750,000 salary and a £1.2m bonus for surpassing performance targets, according to BskyB's annual report. The package compares with £1.5m for eight months in the previous year.

A year ago, the media giant agreed to stop awarding guaranteed bonuses to senior executives as part of its attempt to improve relations with investors.

A report in the Daily Mail claims that BSkyB has set aside £11m to pay off several hundred managers it intends to make redundant.

Murdoch was also awarded 450,000 free shares worth £2.4m, which he can sell from August 2007 if Sky's shares outperform the FTSE 100.

In August, the 32-year-old son of News Corporation chairman Rupert Murdoch, committed himself to the long term at Sky. However, he would not be drawn on whether he would eventually replace his father and take the helm at News Corp after the resignation of brother Lachlan from the business.

BSkyB reported a 32% rise in profit after tax to £425m for the financial year.

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