FAIRFAX MEDIA  LIMITED  2013  37 REMUNERATION REPORT (AUDITED) 6. REMUNERATION OF EXECUTIVE KMP NAME  ROLE non-executive directors Roger Corbett  Non-Executive Chairman Michael Anderson  Non-Executive Director Jack Cowin  Non-Executive Director Sandra McPhee  Non-Executive Director James Millar  Non-Executive Director Sam Morgan  Non-Executive Director Linda Nicholls  Non-Executive Director Peter Young  Non-Executive Director executive director Greg Hywood Chief Executive Officer other executives David Housego Chief Financial Officer (effective from 3 December) Gail Hambly Group General Counsel/Company Secretary Allen Williams Managing Director, Australian Publishing Media Former executives Brian Cassell Chief Financial Officer (until 3 December) DETAIL OF 2013 STI ARRANGEMENTS What is the STi?  Annual bonus payments for senior executives with an emphasis on the achievement of annual financial  performance criteria for the Group as well as specific strategic and operational criteria. For key senior executives  other than the CEO, the bonus criteria were set by the P&CC. Bonus criteria for the CEO were set by the Board.  For the 2013 financial year, an incentive gate applied which required a threshold level of financial performance  to be achieved before any bonuses became payable. The incentive gate was set at the achievement of the  Group’s budgeted EBIT. This was not achieved in 2013 so no STI was paid. What were the performance  measures and why were  they chosen? Three components applied in respect of FY13. LEVEL  COMPONENT  Corporate Level (50%) drives corporate financial results (EBIT) and encourages  senior management to work together for the overall  benefit of the Group Business Unit Level (25%) drives business unit financial and other operational metrics  to encourage team behaviour (e.g. EBIT, cost reductions,  audience, market position and revenue) Strategic Level (25%) indicators of future Group, business unit and personal  success (delivery against milestones and personal  development) to drive the delivery of the Corporate strategy. What could executives earn  under the STi? Each senior executive had a target opportunity depending on the accountabilities of the role and impact on  Company or business unit performance. There are two levels of performance:  PERFORMANCE LEVEL OPPORTUNITY “on-target” performance – e.g. for EBIT the “on- target” performance is typically achievement of  budget or prior year CEO – 75% of fixed remuneration Other executive KMP – 45% of fixed remuneration “maximum” performance – requires stretching  performance targets to be met. CEO – 150% of fixed remuneration Other executive KMP – 90% of fixed remuneration As the 2013 incentive gate target was not met, no STI is payable to KMP for the financial year.  The Board reviewed the Group’s STI arrangements during the year and determined to wind up the existing Plan.  The following table sets out how the Group’s STI arrangements operated during the 2013 financial year.  6.1 PeRFoRMAnCe-BASed SHoRT-TeRM inCenTiVeS (“BonuS PAyMenTS”) FoR SenioR exeCuTiVeS Table 4  Table 3 