Media firm offers chief golden cuffs

SYDNEY - West Australian Newspapers has renewed the contract of its chief executive and boosted compensation in an effort to keep him.

Ian Law will be paid A$800,000 ($860,000) a year and be eligible for a bonus of up to 90 per cent of his base pay, the publisher of Perth's only daily newspaper told the Australian Stock Exchange.

Law will also be able to borrow about A$900,000 interest-free to buy 100,000 shares in the company. More than half of the loan will be waived if Law meets certain earnings-growth targets.

The move comes before expected law changes that could prompt mergers and acquisitions in the Australian media industry.

"The board believes it is vital the company has superior and stable leadership, particularly over the period when ownership laws are likely to be faced," chairman Warwick Kent said.

Australia's Prime Minister John Howard is expected to alter ownership laws to let companies own two of three forms of media - newspapers, TV or radio - in one market, rather than one.

West Australian last week teamed up with Publishing & Broadcasting, owner of top-rated television network Nine, to buy the Hoyts cinema chain from Kerry Packer, fuelling speculation about further deals.

West Australian's shares rose 2 per cent to A$8.60 at the market close in Sydney , taking their gain this year to 30 per cent.

- BLOOMBERG