Nine chief Hugh Marks wins generous payrise

Hugh Marks has taken home a generous salary and cash bonus, despite the broadcaster’s recent $203 million annual loss.

Hugh Marks’ pay is ‘designed to be competitive’.

Nine chief Hugh Marks has won a generous payrise, despite the broadcaster’s recent $203 million annual loss.

Mr Marks took home $2.77 million in the year to June 30 — including a salary of $1.38 million, cash bonuses of $895,000, and shares worth almost $450,000 — Nine Entertainment revealed in its annual report on Tuesday.

The hefty pay packet, in which Mr Marks was awarded 70 per cent of his cash bonuses, compared with the $1.14 million in total remuneration he was paid in the previous financial year, during which he served as chief executive for eight months.

While Nine managed to boost its TV ratings this year with popular shows like Married at First Sight and Ninja Warrior, it suffered writedowns of assets including its free-to-air TV network in 2016-17, which contributed to its annual loss amid weak trading conditions and audience fragmentation.

However, the company’s underlying profit did grow by 2.7% (to $123.6 million) in 2016-17.

In a letter to shareholders, Chairman Peter Costello said Nine executives’ remuneration was designed to be competitive and “enable Nine to attract and retain an market leading team of executives, fit for the modern media world, and competing for this key talent with large international technology companies”.

Media analyst and Fusion Strategy managing director Steve Allen said Nine’s executive bonuses would likely attract investor scrutiny in future, saying that Nine’s board and executives “seem to be doing a good deal better than shareholders and sooner or later they will be held to account”.

However, he said, its remuneration packages had been aligned with the company’s market share, ratings and share price performance.

The chief executive’s bonuses were also related to his performance in improving supplementary revenue streams and content production, which saw Nine lead the ratings in the key 25-54 age demographic, thanks to the success of productions like True Story with Hamish and Andy.

The 9Now catch up service now boasts 4.3 million registered users, while subscribers for Nine’s on demand joint-venture Stan have grown by 50 per cent.

Nine has reduced its directors’ fees by up to 25 per cent and is reviewing its executive reward framework, with any further changes to take effect in 2018 — 2019.

“It is of course, in all shareholders’ interests to remunerate the Board appropriately in order to attract the best calibre of Director — however, the changing media landscape has resulted in all lines of our group costs being examined, and this new level is more consistent with our media peers,” Mr Costello wrote.