Prime Media: higher pay for Hartigan as news threatened

Prime Media Group chairman John Hartigan’s total pay package was 77 per cent larger than his predecessor’s.

Prime Media Group chairman John Hartigan’s total pay package was 77 per cent larger than that of his predecessor, the late Paul Ramsay, despite claims the company cannot afford to support local news services unless the government urgently removes the reach rule.

Mr Hartigan’s base salary was $183,066 for the year ended June 30, up from Mr Ramsay’s base salary of $103,492 in 2014, $128,750 in 2013 and $125,000 in 2012.

A superannuation contribution of $17,391 took Mr Hartigan’s total remuneration up to $200,457 amid threats by the former News Ltd chief to cut jobs in regional newsrooms without immediate removal of the reach rule regulation.

For the second consecutive ­financial year, Prime announced a record profit — $35.6 million — a slight improvement on last year’s $33.85m.

The strong performance was driven by an improved share of the advertising market, which gained 1.3 share points to 42.2 per cent, supported by a growing television audience.

In a carefully worded statement to the stockmarket, Prime did not draw attention to the record financial performance despite having done so in previous years, leading to suggestions the company is overstating its plight to stir up anxiety among regional MPs.

Yesterday, Seven Group chief Ryan Stokes launched a blistering attack on Prime’s repeated calls to axe local news services, saying executives were “undermining” their business by deploying scare tactics.

“It’s a little distressing that Prime’s only strategy … is about removing the reach rule,” Mr Stokes told The Australian.

“That seems to be their only way forward and they say if they can’t get that their business winds down. Their greatest strengths are the local communities they serve yet they’ve said to them that they cannot rely on Prime to be there.”

Mr Stokes’s comments are significant because Seven Group is Prime’s second-largest shareholder with an 11.38 per cent stake.

The diversified mining and media conglomerate also owns a 39.68 per cent shareholding in Seven West Media.