New documents reveal (possible) exec riches

While you were cranking out more online videos in your spare time, Gannett's been busy filing a raft of new public documents revealing the latest round of stock-option grants to the top brass. (You may recall that options give someone the right to buy stock at a set price -- the exercise, or "strike,'' price -- usually, at a future date. The idea: Give executives incentives to get the stock price up.)

I'm highlighting two examples from the new round, filed Wednesday with the U.S. Securities and Exchange Commission. Correct me, people, if you see anything wrong with my math!

• CEO Craig Dubow was granted options to buy 235,000 shares at an exercise price of $31.75 (Wednesday's closing price), this document shows. What this means: If, say, Gannett stock rises 10% within a year, to $34.96, Dubow could buy those shares for $7.46 million, then sell them for $8.21 million, pocketing a pre-tax profit of $750,000.
• Roxanne Horning, senior vice president for human resources, was granted options on 14,000 shares, also at a $31.75 exercise price, this document shows. Using that same 10% price rise example, she could buy those shares a year from now, then sell them for a tidy pre-tax profit of $44,450. (That's probably close to what a Courier-Post reporter earns in a year -- when they're getting paid overtime due. Never fear; as head of human resources, Horning is on the case!)

But, of course, these options are worthless. Gannett shares closed Friday at $30.15, down 5% for the week, Google Finance says. For these options to have any value, shares must trade above $31.75.

I favor executives getting paid boatloads of money -- when quality journalism, revenue, earnings and the stock price are rising. And undoubtedly they'll rise in 2008, since Dubow just told shareholders: "I assure you, you will see great progress."

Use this link to e-mail feedback, tips, snarky letters, etc. See Tipsters Anonymous Policy in the sidebar, upper right. Or leave a note in the comments section, below.