Readers went a little nuts when I wrote about why failed investment bank Bear Stearns illustrates the importance of journalists keeping the pressure on CEOs, including Gannett's Craig Dubow. "You've gone over the deep end, Jim. This is a bash Gannett at any cost blog,'' a reader commented on that post.
And yet! Here's another one: Bear Stearns employees own more than 30% of the company's stock -- shares made practically worthless when the bank was sold yesterday for pennies on the dollar. I'm not saying Gannett is about to fail. But I am saying that today's another good time to review my advice on how much Gannett stock you keep in your 401(k) retirement account.
Tuesday, March 18, 2008
5 comments:
Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."
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It's a well-known fact not to invest too heavily in ones own company...talk with your advisor.
ReplyDeleteYou live too close to the "king who has no clothes" and you believe your own spin, and company spin for that matter. It was that old yarn of loyalty...just ask those who took the buyouts, etc., about being loyal to business.
That's a fact...not crazy. It will likely take two years to get back to $60 a share. But, the strike price for company stock incentives will be much lower.
The pay plans written for the higher ups...are themselves in a different class.
Can we all get the same medical, and pension plan as Congress?
Yep, I thought so.
For what's it worth, I think this is exactly why we need to monitor Dubow et al.
ReplyDeleteBear Stearns is in the pickle it's in because CEO and top management chose to pursue a reckless course of action.
Gannett management is pursuing a course that I think is just as reckless and ill advised.
Someone needs to keep them honest.
...cash inflows and cash outflows to mutual funds that own Gannett.
ReplyDeleteMore cash out...depresses the stock. It will take years of online growth to replace the cost of a Macy's ad...and there are much less of them.
And considering how tight Gannett always ran the show...means that they are cutting into bone marrow now.
A voluntary cut in compensation at hq...would send a great signal. But don't count on it.
Why doesn't corporate work for free? How about a 5% cut for everyone in the company? We could eliminate lights. Only work during daylight.
ReplyDeleteOkay, how about finding new revenue sources, because the old ones are going away?
This is all so personal, obviously. I lost several friends to "consolodations" which I guess saved us several other jobs, but it still hurts.
Every company is doing it.
@ 5:08 a.m.
ReplyDeleteYou sarcastically suggested that a 5% cut for everyone in the company is one way to get it done.
As if that hasn't happened.
Year in, year out most employees are getting 1% and 2% raises now, which essentially amounts to a pay cut. It doesn't keep up with the cost of living and inflation.
Are you blinded by your investment?