[CEO smackdown: Al Neuharth vs. John Curley]There's a tortured but illuminating 20-year history between Gannett and Freedom Forum, the non-profit foundation that is formally unveiling the $450 million Newseum in Washington, D.C., on Friday. It goes something like this:
Gannett CEO Al Neuharth installed himself as head of Freedom Forum's predecessor, the old Gannett Foundation, when he retired in 1989. One of his first moves was to force Corporate to buy back the more than $500 million in GCI shares held by the foundation. Neuharth had big and ultimately controversial plans, and wanted to diversify the charity's assets to achieve more financial oomph.
But Neuharth's move created a big problem for Gannett. The foundation's stake was equal to something like 10% or 11% of Gannett's stock, as I recall. If GCI didn't buy out the foundation, Neuharth could have sold those shares to an unfriendly investor. In 1980s-era Wall Street, that tactic was called greenmailing. In the end, Neuharth successor John Curley blinked. The company bought out the foundation, and regained rights to the Gannett Foundation name. Neuharth's charity was renamed Freedom Forum.
Over the years, Gannett insiders flowed to Freedom Forum. They now occupy at least five of the 18 seats on the charity's board of trustees. They include the powerful chairmanship, held by Charles Overby; for 16 years, he was a Gannett reporter, editor and corporate executive. Madelyn Jennings, former GCI senior vice president for personnel, also is a trustee. And so is USA Today's top editor, Ken Paulson, who was once Neuharth's chief of staff.
Insiders also hold key management jobs. In addition to Overby, Peter Prichard, another former Neuharth assistant and USA Today editor, is president of the Newseum. Mary Kay Blake, former vice president/recruiting and placement in Gannett's newspaper division, is senior vice president of development. Chris Wells, another former Neuharth chief of staff, is senior vice president for international initiatives and the Free Spirit awards. Susan Bennett, vice president for marketing, is a former USA Today editorial page writer.
Finally, of course, Neuharth himself -- now 84 -- is Freedom Forum's mysteriously well-compensated senior advisory chairman.
Defining 'insider'
Gannett's chief spokeswoman, Tara Connell, objects to my saying that Freedom Forum is run by Gannett insiders. In a series of e-mails, Connell says: "There are no current Gannett employees working for the Freedom Forum. To call them Gannett insiders is highly inaccurate.'' Also: "Gannett the company is not connected in any way with the Freedom Forum."
Your thoughts, in the comments section, below. Use this link to e-mail feedback, tips, snarky letters, etc. See Tipsters Anonymous Policy in the green sidebar, upper right.
Gannett CEO Al Neuharth installed himself as head of Freedom Forum's predecessor, the old Gannett Foundation, when he retired in 1989. One of his first moves was to force Corporate to buy back the more than $500 million in GCI shares held by the foundation. Neuharth had big and ultimately controversial plans, and wanted to diversify the charity's assets to achieve more financial oomph.
But Neuharth's move created a big problem for Gannett. The foundation's stake was equal to something like 10% or 11% of Gannett's stock, as I recall. If GCI didn't buy out the foundation, Neuharth could have sold those shares to an unfriendly investor. In 1980s-era Wall Street, that tactic was called greenmailing. In the end, Neuharth successor John Curley blinked. The company bought out the foundation, and regained rights to the Gannett Foundation name. Neuharth's charity was renamed Freedom Forum.
Over the years, Gannett insiders flowed to Freedom Forum. They now occupy at least five of the 18 seats on the charity's board of trustees. They include the powerful chairmanship, held by Charles Overby; for 16 years, he was a Gannett reporter, editor and corporate executive. Madelyn Jennings, former GCI senior vice president for personnel, also is a trustee. And so is USA Today's top editor, Ken Paulson, who was once Neuharth's chief of staff.
Insiders also hold key management jobs. In addition to Overby, Peter Prichard, another former Neuharth assistant and USA Today editor, is president of the Newseum. Mary Kay Blake, former vice president/recruiting and placement in Gannett's newspaper division, is senior vice president of development. Chris Wells, another former Neuharth chief of staff, is senior vice president for international initiatives and the Free Spirit awards. Susan Bennett, vice president for marketing, is a former USA Today editorial page writer.
Finally, of course, Neuharth himself -- now 84 -- is Freedom Forum's mysteriously well-compensated senior advisory chairman.
Defining 'insider'
Gannett's chief spokeswoman, Tara Connell, objects to my saying that Freedom Forum is run by Gannett insiders. In a series of e-mails, Connell says: "There are no current Gannett employees working for the Freedom Forum. To call them Gannett insiders is highly inaccurate.'' Also: "Gannett the company is not connected in any way with the Freedom Forum."
Your thoughts, in the comments section, below. Use this link to e-mail feedback, tips, snarky letters, etc. See Tipsters Anonymous Policy in the green sidebar, upper right.
I like your new Google error message on the Where Do You Work item. It says you look like a virus.
ReplyDeleteHuh?
ReplyDeleteWhat your not saying about Gannett buying back their stock from what is now the, "Freedom Forum." One, Gannett did not have the bucks at the time. They had to borrow the money. From talking to Gannett's people back then. Another, principal reasons, for a buy back, was Gannett, was afraid, that rumors that Al, would try and regain, his CEO position., with the vast foundation proxies. Which at that time would have surely been a, coup de grâce, of Gannett.
ReplyDeleteYou may be right. I'm pretty sure Corporate used the shares bought from the Gannett Foundation to establish the company's 401(k) plan.
ReplyDeleteI wonder if Tara would object to you referring to them as "extremely loyal, long-term, high ranking, career, ex-Gannett employees".
ReplyDeleteLOL!
ReplyDelete...add overly paid, overly stroked, with ego's to match.
ReplyDeleteWhat's next? A historical monument to Big Al, McCorky, and Slick John.
Meanwhile, compare your pension payouts with those executives who have since retired.
ReplyDeleteAmerican's have gotten so damn soft and stupid to boot. Forget their 401k and invest your own money separately in companies that have some honor, dignity, and respect.
why does this post have a "Cincinnati" tag?
ReplyDeleteAnon@5:22 a.m.: You are a very sharp reader; Mary Kay Blake's husband, I believe, was once executive editor of The Cincinnati Enquirer.
ReplyDeleteFreedom Forum is nothing more than a thinly disguised annuity for ex-Gannett execs from the Neuharth era.
ReplyDeleteA review of the Freedom Forum in the National Review:
ReplyDeletehttp://article.nationalreview.com/?q=NzMzYzZiOWRlYjBlM2I1NTFjOGEwNDQ0ZGU0Y2MwOTA=
Freedom Forum is nothing more than a thinly disguised annuity for ex-Gannett execs from the Neuharth era.
ReplyDeleteExactly - and I will not contribute $20.00 entrance fee to add to the wealth of an Executive who could care less. Before the new building was established visits were free - now there is an entrance fee. Well, I'll guess somebody has to pay for the lavish lifestyle of Al Neuharth.
Little is said about Neuharth's seizing control of the foundation using its assets in completely different ways that Frank Gannett chartered it. I thought there was a law against this- I am surprised that more was not made of this when the theft occurred. (Those poor dopes in Rochester.) In any case, he lists himself as the "founder" of the foundation-- Very odd. Is the president of the Ford Foundation its founder?
ReplyDeleteIn any case, the Newsmuseum is sure to be a bust and likely take the foundation with it. Vanity museums do not last.