Fairfax Media boss Greg Hywood’s pay dropped by $375,000 last financial year because he missed out on bonuses as the company posted a $16.4 million full year loss.

Mr Hywood’s total pay, which includes shares in the company, was $1.98 million in the 2012/13 financial year, down from $2.35 million in 2011/12.

Most of the media company’s senior executives did not receive any bonuses in 2012/13 after failing to meet performance targets, according to the company’s annual report released on Friday.

Mr Hywood’s bonus for the previous year was $420,000, which was half of what he was entitled to.

Fairfax chairman Roger Corbett also took a pay cut after agreeing to shareholder demands he reduce his salary.

He was paid $415,000 in 2012/13, down from $433,000 in 2011/12.

Mr Hywood and his fellow executives will receive less cash and more Fairfax shares in the current financial year, as part of measures being introduced to ensure a greater focus on shareholders’ interests.

They have agreed to sacrifice 10 per cent of their salaries in favour of more company shares, which they will not be able to trade for two years.

Fairfax, the owner of The Sydney Morning Herald, The Age and The Australian Financial Review, has posted three consecutive annual losses as its overhauls its business to combat declining revenues from its traditional newspaper assets.