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REMUNERATION REPORT FOR YEAR ENDED 30 JUNE 2015 Upside against the financial metric will be available for all executives such that participants can receive up to 115 of their target STI opportunity for stretch performance against the financial metric. Following the implementation of a new management structure on 1 October 2014 Rick Lenarcic became KMP and Craig Bruce ceased to be KMP. Following the annual review for 2014 the Committee did not apply any fixed remuneration increases to existing Executive KMP. With the commencement of the new CEO all KMP remuneration was reviewed and a salary increase was approved for 2016 for Rick Lenarcic of 100000 taking his fixed remuneration to 399308. The fixed remuneration of Grant Blackley is 1050000 an increase from 1000000 from former CEO representing an increase of approximately 5 to reflect competitive market remuneration for this role. The fixed remuneration of Nick McKechnie is 518783 reduced from 617775 from former CFO representing a decrease of approximately 16. The fixed remuneration of Vijay Solanki is 370373 reduced from 400373 from former Director of Digital and Innovation representing a decrease of approximately 7. e Terminations following the end of financial year Rhys Holleran ceased employment with the Group on 31 July 2015 and received a termination payment of 1990034 that included payment of all outstanding leave entitlements of 1021474 and 12 months payment in lieu of notice of 968560 as both parties agreed it was beneficial for the Group for a new CEO to be appointed as soon as possible. Andrea Ingham ceased employment with the Group on 17 July 2015 and received a termination payment of 190046 including all outstanding leave entitlements and payment in lieu of notice. f Short-term incentives The table below outlines details of the STI plan. What is the STI The STI is an annual at risk bonus and is designed to reward executives for meeting or exceeding financial and non-financial objectives. How is the STI delivered STI is awarded in cash and is not subject to deferral. Given the executives relatively modest potential STI quantum the Committee does not currently believe it is appropriate to introduce STI deferral for Executive KMP. To provide a fair and competitive executive remuneration package introducing STI deferral would require an increase in STI opportunity with a corresponding increase in target total remuneration which the Committee does not believe would be appropriate at this time. What are the STI target opportunities The CEO has a target STI opportunity of 47 of fixed remuneration CFO of 29 of fixed remuneration and other executives have an STI opportunity of approximately 22 of fixed remuneration. What are the performance measures Each year the Committee sets the KPIs for the CEO and CFO for the financial year with a view to directly aligning the individuals annual incentive opportunity to execution of the Groups business strategy. The CEO determines the KPIs for the other senior executives which are aligned to delivery of the strategy and performance of the business. Payments under the STI are determined by performance against KPIs. For 2015 STI performance measures and weightings vary by executive depending on individual accountabilities. The metrics and their rationale for selection are as follows Financial metrics Rationale for selection Group NPAT compared with budget excluding significant items where relevant Key financial metric for the Group that drives financial results and encourages senior executives to work together for the overall benefit of the Group Segment EBITDA compared with budget Focuses senior executive attention on results and performance for segments they have direct responsibility over Sales-related targets Focuses senior executives on achieving sustainable financial performance from growing top line revenue Ratings targets Revenue performance of the Group is largely dependent on ratings on both radio and television and drives the ability for the Group to deliver financial results 26 SOUTHERN CROSS AUSTEREO ANNUAL REPORT 2015