Pay freeze for Fairfax executives
Mr Hywood's pay fell by $376,000 to $1.61 million in the year to June 30, according to the annual report released on Friday.
Although Fairfax's full-year loss shrank to $16.4 million from $2.73 billion in 2012, the board decided not to pay bonuses to senior executives, unless bound by contractual obligations.
The cuts come as the company is to axe another 45 staff in its cost-cutting campaign and after a rebuke from shareholders last year about executive pay. More than 25 per cent of shareholders voted against the 2012 remuneration report.
"We hope shareholders will see that the board has not stood idle in the face of dramatic change in media industry," said Fairfax director Sandra McPhee.
Mr Hywood's bonus for the previous year was $420,000, half of what he was entitled to. Fairfax chairman Roger Corbett also took a cut, with his fees totalling $414,745, down from $432,730 the previous year.
Mr Hywood and his fellow executives have agreed to sacrifice 10 per cent of their salaries for company shares, which they will not be able to trade for two years, to maintain a focus on shareholders' interests.
Fairfax, the owner of The Age, The Sydney Morning Herald and The Australian Financial Review, has posted three consecutive annual losses as it overhauls its business to combat declining revenues from its traditional newspaper assets.
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Fairfax froze most executive salaries and the board approved a pay cut for the CEO after another challenging year for the business. The company reported ongoing losses and is overhauling its operations to combat declining revenue from traditional newspaper assets, prompting cost-cutting and a response to shareholder concerns about executive pay.
Greg Hywood's pay fell by $376,000 (a 16% reduction) to $1.61 million in the year to June 30, according to Fairfax's annual report.
The Fairfax board decided not to pay bonuses to senior executives this year unless they are contractually obliged to do so. The company cited the difficult year and the need to show restraint after shareholder rebukes.
In addition to pay freezes and cuts, Fairfax's chairman Roger Corbett saw his fees fall to $414,745 from $432,730. Executives have also agreed to sacrifice 10% of their salaries to buy company shares that they cannot trade for two years.
Executives agreed to convert 10% of their salaries into Fairfax shares that are locked for two years. That move is intended to align management's interests with shareholders by tying more of executive compensation to the company's share performance.
Fairfax announced it will cut another 45 staff as part of an ongoing cost-cutting campaign. The company is also restructuring its business to address declining revenues from its traditional newspaper assets.
Fairfax has posted three consecutive annual losses. Its most recent full-year loss narrowed to $16.4 million from $2.73 billion in 2012, but the company continues to restructure to respond to dramatic changes in the media industry.
Shareholders have shown clear concern: more than 25% voted against the 2012 remuneration report. The board has pointed to recent pay cuts, freezes and the move to share-based salary sacrifices as evidence it is responding to shareholder pressure.
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