News Corporation's James Murdoch announced he has declined a bonus amounting to almost $US6 million ($5.63 million), citing the phone hacking scandal at the UK newspaper News of the World, which was shut down in July due to the controversy.

"I have declined the bonus the company chose to award to me," said James Murdoch in a statement.

News Corp's adjusted operating income increased 12 per cent during the year, beating an internal target, according to The Telegraph.

"While the financial and operating performance metrics on which the bonus decision was based are not associated with this matter, I feel that declining the bonus is the right thing to do," Murdoch added, noting that he "will consult with the compensation committee in the future about whether any bonus may be appropriate at a later date."

James Murdoch was supposed to get a payout of $US17.9 million, inclusive of the $US6 million bonus and $US8.3 million in stock awards. James' bonus was set to increase his compensation package by 74 per cent. Without the bonus, his remuneration will rise 16 per cent to $US11.9 million.

The compensation committee is composed of independent directors, Viet Dinh, a former Justice Department assistant attorney-general and Silicon Valley venture capitalist Thomas Perkins who is leaving the board.

Reports that News of the World had hacked the voicemail of a murdered schoolgirl also resulted in News Corp's failed takeover bid for British Sky Broadcasting Group.

A number of arrests have been made in connection to the phone hacking scandal, as reports revealed that former senior members of the editorial staff on News of the World were involved in illegally hacking into the voicemails of mobile phones of not just crime victims, but celebrities and politicians as well.

UK Police said another man was arrested Friday as their intensive investigation on the phone hacking continues. He is the 15th person to be held since police began reinvestigating the phone hacking scandal this year.

Meanwhile, News Corp is losing two directors, Perkins and Kenneth Cowley. Perkins cited his age as reason for resignation, while Cowley chose not to go for re-election. An executive from Accel Partners, James Breyer, was nominated to join the board, according to Sydney Morning Herald.

Colin Myler, former editor of the now defunct News of the World, and Tom Crone, a former company lawyer, will be two of those to be questioned by the House of Commons culture, media and sports committee in London on Monday as investigations continue on the scandal.

James Murdoch told the panel on July 19 that subordinates were responsible for ethical lapses. Both Myler and Crone issued a statement in their defense.

James Murdoch is deputy chief operating officer of News Corp. He is also executive chairman of News International, News Corp's UK newspaper business, which owns The Sun and The Times. A statement from the company noted James "had played an important part in developing the company's key businesses in investments in Europe, Asia and the Middle East."