News Corp. engineered its takeover of the executive ranks of Gemstar-TV
Guide International Inc. Tuesday, ousting CEO Henry Yuen and chief financial officer Elsie Leung from their current
posts. News Corp. controls about 42 percent of Gemstar, and it has been angling to
remove the two executives for some time.
Neither Yuen nor Leung is walking away empty-handed, though. Yuen will receive
$22 million in severance, along with a new five-year contract to head a new
international business unit. He will also chair Gemstar's board in a
nonexecutive capacity with no voting power. Along with a $7 million severance
package, Leung is getting a three-year deal to work with Yuen, and she keeps her seat
on the board.
News Corp. veterans Jeff Shell, who has been co-president and chief operating officer for five
months, takes over as CEO. Executive vice president of finance
Paul Haggerty has been tapped to succeed Leung as COO. News Corp. said it will
begin searching for a new CFO.
Yuen and Leung are also trading in about 20 million in Gemstar options for
about 8 million shares of restricted stock and approximately 9 million new stock