Annual Report Remuneration 2017

6 The current loyalty-building and variable remuneration plan of directors and executives was approved by the Appointments and Remuneration Committee on 31 May 2007 and by the Board of Directors' meeting of the same date. This Plan includes the the CEO and all executives and middle management of Atresmedia. The portion corresponding to executive directors includes an annual bonus of up to 80% of total remuneration (which may reach 88% as described later on), paid in two equal tranches: 50% of the bonus when the targets assigned are attained (related with the Atresmedia Group's annual economic targets), and the remaining 50% once a full year has elapsed following the year to which compliance refers, provided that the director continues providing his/her services to the Company, since this percentage is tied to building the director's loyalty, thereby rewarding seniority and a stable relationship with the Group, together with the personal and professional commitment of directors to medium- and long-term strategies. The calculation procedure of each 40% bonus (annual and deferred) foresees an additional extraordinary remuneration when the EBITDA exceeds 110% up to the limit of 130% of compliance with the target. In this tranche of 20 points, variable remuneration may be increased proportionally by 10 additional points (i.e., an additional 4% with respect to 40% of the annual amount and on 40% of the deferred amount of the fixed remuneration). In 2017, the EBITDA has not reached the limit of 110 % and therefore this additional remuneration is not applicable. In 2010, the Appointments and Remuneration Committee proposed to make an amendment to the Plan, which was subsequently resolved by the Board of Directors. The minimum percentage was modified (set at 60%) that must be obtained with respect to the EBITDA target established each year, which is the necessary condition so that the plan can yield its effects. Exceptionally, it is also possible to increase the individual variable remuneration of directors, especially that of executives, via additional payments, relating to an extraordinary incentive or remuneration, which would be linked to effectively attaining the targets of specific importance for the Company. In such cases, the Appointments and Remuneration Committee must assess the amount and timeliness of such remuneration, together with its possible beneficiaries, afterwards submitting its proposal to the Board of Directors for approval. The directors receiving such extraordinary remuneration must abstain both from the deliberation process and from voting on the related resolutions. It is also possible to reduce directors' remuneration, when particularly adverse economic conditions prevail leading to a significant reduction in Group earnings and the concomitant general expense containment policy. A.5 -Explain the main characteristics of the long-term savings systems, including retirement and any other survival benefits, financed partially or in full by the Company, be they provided internally or externally, with an estimate of their amount or annual equivalent cost, indicating the type of plan, whether it is a defined benefit or contribution, the conditions of the consolidation of economic rights to directors and their compatibility with any type of indemnity for the early termination of the contractual relationship between the Company and the director. Also indicate the contributions to directors as part of defined contribution pension plans; or the increase in consolidated rights of the director, with regard to defined benefit plan contributions. No remuneration of this type exists. A.6. Indicate any indemnity payments agreed upon or paid in the event of termination of directors' duties. Indemnity clauses are only stipulated in the CEOs contract. Their characteristics are described in section A.7 of this Report. In 2017, no amount was paid in this regard.