Fairfax Struggles but CEO Gets Huge Paycheck

Despite the struggles that Fairfax Media is facing, its chief executive received a little more than $2.02 million for 2012. Greg Hywood is also expected to receive an additional $646,000 in share grants if the company performs well.

According to data, the $2.02 million that Hywood received for 2012 included his salary, bonuses and shares. His base salary is about $1.55 million while his superannuation and other benefits are pegged at about $48,000. His performance bonus last year was $420,000.

And while it seems that the $420,000 performance bonus is big, it is worth remembering that this is only half of what he was originally entitled to receive. Hywood volunteered to get only half of his performance bonus in observation of the difficult environment that Fairfax Media is in.

Shares of the company have been struggling since October 2011. From 96 cents, it plunged to a new low of 39.5 cents a couple of days ago. Fairfax Media is also facing other challenges like low advertising revenue and the shift of consumers from print to digital.

But despite the struggles, Hywood’s compensation still increased. According to the annual report of Fairfax, the increase is because of Hywood’s permanent appointment as chief executive starting February 2011.

Fairfax is implementing measures to help save the struggling business. Aside from Hywood’s foregoing half of his performance bonus, Fairfax said directors’ fees would not increase in 2013. Salaries of directors, who are also earning at least $150,000, would also be frozen for next year.