CEO Craig Dubow would get nearly $30 million, and four other senior executives would share another $31 million, under golden parachute benefits, if control of Gannett shifted through a sale or liquidation, the newly filed proxy report to stockholders says. Still, the value of the payouts is down considerably from at least $79 million a year ago, when the beneficiaries were different and Gannett's stock traded much higher.The new proxy reveals less-generous payouts for Dubow and Chief Financial Officer Gracia Martore, compared to their parachutes last year. Plus, for the first time, the proxy gives figures for three newer Corporate executives: newspaper division chief Bob Dickey; broadcasting division head Dave Lougee, and Chief Digital Officer Chris Saridakis. The relevant section starts on page 46.
Change in control is defined as:
- the acquisition of 20% or more of Gannett's then-outstanding shares of common stock, or the combined voting power of our then-outstanding voting securities.
- incumbent directors cease to constitute at least a majority of the board, except under certain circumstances.
- consummation of GCI's sale in a merger or similar transaction or sale or other disposition of all or substantially all of its assets.
- approval by the stockholders of the company’s complete liquidation or dissolution.
[Images: screenshots from the proxy report]
If the company's stock loses almost 80 percent of its value, he gets $3.1 million.
ReplyDeleteIf the company's value declines to the point where it gets sold or goes bankrupt, he gets $30 million.
It's a wonderful life.
At these prices - it'd be a bargain.
ReplyDeletePay em off, get rid of the lot.
Verification word: curis
2:12 -- Agreed. The money paid out would be far less than the value the company lost during the past year. It would be tough for anyone to turn things around in this economy, but we could re-hire without the golden parachute and ridiculous bonus clauses. And we could hope that none of these folks ever found a job leading a major company again. Of course that latter bit is just fantasy.
ReplyDeleteGreed isn't more apparent when you have some rich dickhead like the people running the corporate and still don't realize the winds of change have taken course but still require their exurburant fee to do nothing because they feel they are deserving. God cannot come down on these greedy bastards quick enough in my opinion. They are dead and just don't know it! They rule by power and create misery to the the many by their insatiable greed and self centered inactions! They are thinking that they are self deserving because of the the friends that they require. They believe that they are modern day Pharoahs and we are the peasant workers that lives don't matter. This is Gannett and its rulers and this is Gannett and its downfall. Because it is sooooooooo perverse and crooked!
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ReplyDeleteIsn't there a shareholder resolution on tax gross-ups?
ReplyDelete"Our Company’s stock price performance in 2008 deeply disappointed all of our shareholders, the Board and management included. Each Company director saw his or her investment in Company stock fall dramatically in 2008. Each member of Company management, including each NEO, was personally and significantly impacted by the decline in our stock price. As a result of a combination of the Committee’s executive compensation policies—paying a substantial portion of NEO compensation in the form of Company stock, paying 25% of NEO bonuses in past years in the form of Company stock, and through stock ownership guidelines requiring each NEO to retain Company stock notwithstanding the decline in stock price—each NEO has a large percentage of his or her personal net worth tied to our Company’s stock price. None of the stock options our NEOs received during the last eight years currently have any value. The RSUs our NEOs received since 2005 have experienced a decline in value the Committee did not and could not anticipate when those awards were made. Each of us on the Board and in management understands, profoundly, the disappointment in our stock price performance experienced by our shareholders. "
ReplyDeleteI worked for Gannett for 15 years, and all I have is this lousy coffee mug.
ReplyDeleteThe golden parachutes don't deploy when a sale is forced by bankruptcy -- that's all I'm sayin'.
ReplyDeleteIs it possible that Dubow is trying to cause poor performance so the board will force him out and allow him to collect the $30 million prize?
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