Dow Jones gives 135 staff 'golden parachutes'

The Wall Street Journal's publisher, Dow Jones, has tinkered with the pay arrangements of 135 senior executives to ensure that they get golden parachutes if they are made redundant after a takeover.

A regulatory filing by Dow Jones revealed that the company was extending "change of control" protection from its top 25 managers to a wider group of 160 people, fuelling expectations that the company is about to be sold.

Dow Jones's controlling Bancroft family is considering a $5bn (£2.5bn) bid from News Corporation's Rupert Murdoch, although this is opposed by many employees who feel Mr Murdoch could compromise the WSJ's editorial independence.

Several alternative buyers have emerged this week. Brian Tierney, the owner of the Philadelphia Inquirer, said he would be "inclined to participate" as part of a consortium if Dow Jones was thrown open to a formal auction process.

A union representing Dow Jones staff said that an unspecified "Wall Street group" and an internet entrepreneur had expressed interest in bidding, although it did not identify either of them.

The new arrangements mean Dow Jones executives will be able to cash in unvested share options if they lose their jobs in the wake of a takeover. They would also be eligible for a bonus for the whole of 2007 even if they were made redundant before the end of the year.

According to the New York Times, the arrangements mean that Dow Jones's chief executive, Rich Zannino, could be eligible for a $19.7m payoff. The WSJ's publisher, Gordon Crovitz, would be in line for $7.2m.

Many analysts believe Dow Jones will be sold. Richard Dorfman, managing director of the New York-based investment firm Richard Alan, said: "They're getting their decks in order for a deal, and I think it's going to Murdoch."