FAIRFAX MEDIA  LIMITED  2013  33 REMUNERATION REPORT (AUDITED) 2.3 ReMuneRATion Mix 3. SUMMARY OF EXECUTIVE REMUNERATION OUTCOMES FOR 2013  The Board considers that a significant proportion of executive remuneration should be ‘at risk’, and linked to Fairfax’s short and  long term strategy and performance. The following diagram shows senior executives’ remuneration mix for the 2013 financial year.  The media market and, in particular, the print media business has had another challenging year.  Market conditions remain difficult, and traditional print advertising revenue continues to decline. 2013 saw Fairfax implement a  number of cost saving initiatives and continue to implement its strategy to respond to industry changes, but the transition from  a traditional print media company to a cross-platform business is not instantaneous.  In this year of challenges and change and consistent with the impact on our shareholders: The detailed remuneration tables set out in Section 6.3 show full details of KMP remuneration for the 2013 financial year.  Numbers include the expense relating to equity instruments under the LTI, as required by the Accounting Standards  notwithstanding that these amounts were not actually delivered to executives.  The following table has been included voluntarily to provide a better understanding of the amounts actually received by current  KMP (as set out in section 5) for each component of remuneration during the 2013 financial year. Table 1 In addition, over the prior two financial years:  •  STI payments have been below on-target performance; and •  no LTI awards vested. 1) David Housego commenced with the Company in the role of Chief Financial Officer (CFO) on the 3 December 2012 (with an annual fixed  remuneration of $825,000). As part of his recruitment arrangements Mr Housego was entitled to a one off payment of $100,000 at the  end of the FY13 subject to performance objectives being achieved. 2) Allen Williams commenced as Managing Director Australian Publishing Media on 4 April 2013 (with an annual fixed remuneration of  $775,000). Prior to this Mr Williams was the CEO of Fairfax New Zealand. 3) Fixed remuneration comprises of base pay, superannuation and long service leave. •  senior executive salaries remained frozen unless there was a substantial role change; •  no annual bonuses were paid to senior executives because short term incentives did not meet the required financial gateway,  unless there was a contractual pre-existing obligation; and •  the long term incentives, granted in prior years and tested at the end of their performance periods this year, did not vest. 0 20 40 60 80 100 CEO CFO OTHER KMP EXECUTIVES 45% 33% 22% 24% 22% 26% 17% 54% 57% Fixed STI (on-target) LTI (max) NAME FIXED  REMUNERATION (3) BONUS LTI TOTAL Greg Hywood 1,611,239 – – 1,611,239 David Housego (1) 491,089 100,000 – 591,089 Gail Hambly 635,830 – – 635,830 Allen Williams (2) 189,934 – – 189,934