Fairfax Media CEO Greg Hywood has been gifted a $2.5 million share bonus following the company’s strong profit results for the first half of the 2017 financial year.
The Australian reported that the share giveaway is part of Fairfax’s new bonus scheme that applies only to Hywood, and relies heavily on the success of its real estate business, Domain, which could potentially become a separate Fairfax-controlled entity on the ASX.
Fairfax announced to shareholders yesterday that Hywood was granted 2,583,919 performance rights, which will be held in his name until 2019, and are subject to performance hurdles before being cashed in.
Fairfax shares closed at 95c yesterday, giving Hywood’s bonus a value of $2.45m, according to The Australian.
The announcement comes after Fairfax tripled its profits in the six months to 31 December 2016 despite a continuing revenue decline.