Director McCune's odd way of showing faith in GCI

One of Gannett's newest directors, Scott McCune, occupies the unofficial "Coca-Cola Co. seat,'' after directors elected him to the 10-member board last October.

Now, as he faces ratification by stockholders at next month's annual meeting, I hope McCune explains why he was the only director declining to be paid any of his $15,500 of director fees in Gannett stock last year -- his very first on the board (inset, fee table).

The appearance that he is shunning our stock from the git-go hardly instills confidence among investors he's supposed to serve, or among employees he's expected to lead. All the other board members sought shares, or a combination of cash and shares, the new proxy report to stockholders says. Yet: "Mr. McCune elected to receive his director compensation for 2008 in cash,'' the director pay section says.

Dubow ID'd McCune
A Coca-Cola marketing executive, McCune (left) was one of two directors elected Oct. 30; the other, Howard Elias, is a division chief at technology giant EMC Corp. McCune, 52, joined the board after Director Charles Fruit died last spring. Although McCune wasn't officially his replacement, Fruit also was in marketing at the Atlanta beverage goliath.

Indeed, Fruit was one of three directors who asked to be paid entirely in stock. The other two: Donna Shalala and Neal Shapiro. As the board's only employee-member, Chairman and CEO Craig Dubow isn't entitled to director fees.

Dubow recommended McCune to the committee responsible for finding new directors, the Nominating and Public Responsibility Committee, "as a prospective director with broad business experience and expertise in consumer marketing strategies,'' the proxy report says. "After each Nominating and Public Responsibility Committee member met with McCune and the committee as a whole reviewed his qualifications and experience in accordance with its charter mandate, the committee unanimously recommended that he be elected to our board of directors."

Footnote facts
The McCune detail would be easy to miss. I found it in footnote No. 8 of 12 to the directors' compensation table -- on page 51 of the 57-page report. That's why it pays to read all the way to the bitter end.

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