The take home pay for Hugh Marks, the CEO of Nine Entertainment, has fallen sharply as his incentive payments get shaved.
Marks, whose base is $1,550,000 but has a total annual on target pay of more than $5 million a year, received $2,161,263 in the year to June, down from $4,957,638 the year before.
Non-statutory remuneration disclosures within Nine’s annual report, and lodged with the ASX, shows Marks’ cash bonus at zero compared to $647,220 in 2019.
Long term incentives paid came to $482,521 compared to $2,559,804 the year before.
Short term bonuses for Nine executives were cancelled in a program to cut costs at Nine to meet the coronavirus crisis.
“To minimise the revenue impact of COVID-19 the Company implemented a range of cost saving initiatives across all our businesses,” says Catherine West Chair of Nine’s people and remuneration committee.
“This program was significant, and included both short term and structural cost reductions. Specifically, it included no short-term incentives for FY20 being paid to Executive KMP (Key Management Personnel) and other participants on the Nine STI (short term incentive plan).”
The board of directors had approved a pay rise for Marks, the first since his appointment as CEO in 2015.
His base pay went to $1,550,000 from $1,400,000 effective from July 1, 2019.
Nine last month posted a $508.78 million loss for the full year to June mainly on impairment of goodwill. Excluding special items, profit fell 17% to $155.4 million.
Marks then said: "The results of the strategic growth decisions we have made over the past 5 years, have played out at scale across the year and, as a result, sheltered us from the worst of the market impact of COVID-19.”e
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