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35
APN
annual report
2011
remuneration report
APN News & Media Limited and Controlled Entities
A: Remuneration snapshot
A summary of remuneration arrangements for 2011 are outlined in the table below.
Senior Executive remuneration
Fixed remuneration
Fixed remuneration includes base salary, other fixed remuneration including fully costed salary packaged
benefits such as motor vehicles (including fringe benefits tax as applicable) and superannuation.
Senior Executive fixed remuneration is set with reference to market data, the individual’s experience and
performance.
There are no guaranteed fixed remuneration increases for executives.
Short-term incentive (STI)
STIs are paid in cash subject to achieving specific performance objectives, both financial (75%) and
individual (25%).
50% of the financial award is payable for on-target performance and 100% at 10% over-target, except
as disclosed in section C of this report.
Financial targets include Group NPAT for Group executives and a mix of business unit specific EBIT and
Group EBIT for business unit Chief Executives.
Long-term incentive (LTI)
The LTI plan awards Performance Rights subject to performance over a three year performance period.
Awards are subject to two performance conditions:
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Seventy-five percent (75%) of the award will be subject to an EPS target set by the Board.
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Twenty-five percent (25%) of the award will be subject to a relative Total Shareholder Return (TSR)
performance condition, compared against companies in the GICS Consumer Discretionary index.
Employment contracts
Senior Executives, including the Chief Executive Officer, are entitled to receive fixed remuneration inclusive
of superannuation and benefits and are eligible to participate in the Company’s STI and LTI plans.
All Senior Executive contracts, except for the Chief Executive Officer’s are continuing contracts which
require 6 to 12 months notice in order to terminate the contract. The Chief Executive Officer is employed on
a three year contract which commenced on 1 January 2011.
Non-executive Directors
Directors fees
APN aims to provide remuneration commensurate with the expected time commitment, level of expertise
and experience and considers fees paid to Directors in similar companies. Directors are paid a base fee for
services to the Board, and a fee for each Board Committee on which they sit.