You respond: Why does Chairman and CEO Craig Dubow, plus other retired executive officers, get all the goodies outlined in his employment contract, a document Gannett filed with the U.S. Securities and Exchange Commission?
Need proof? Here you go:
Dubow's 2005 employment contract, which he signed after the board of directors named him chief executive officer four years ago. Now 54, Dubow (left), and Chairman Doug McCorkindale (below) executed the 11-page contract on July 25, 2005; it was filed four days later at the U.S. Securities and Exchange Commission. Also signing for the company: James Johnson, then head of the board's compensation committee.
I'm a public documents junkie, so my eyes lit up when I saw this: Paragraph 8(b) Miscellaneous Additional Benefits, Post-Retirement. I quote: "After Dubow ceases full-time active employment (whether before or after reaching his normal retirement date) for any reason other than good cause as defined in Section 5(a)(iii), he shall receive all benefits afforded to other retired executive officers generally, as described in Exhibit A to this Agreement as such Exhibit A may be revised from time to time."Exhibit A: CEO Retirement Benefits
This is the first time I've seen the generous "executive health insurance" promised to Dubow and his family. As near as I can tell, it's 100% company-paid, and good for the rest of their lives:
1. Life Insurance. The CEO owns a whole life insurance policy in an amount equal to 2 times salary and last bonus plus $200,000, or $300,000 if a member of both the Gannett Management Committee and Board of Directors. Gannett pays the policy premium. Upon retirement, the policy’s face amount reduces 10%, and 10% each year thereafter, to a minimum benefit of $350,000.
2. Travel Accident Insurance. The CEO receives insurance equal to 3 times salary and last bonus on a 24-hour business or pleasure basis. (This is in addition to the regular employee travel accident insurance benefit of 3 times salary and last bonus.) Upon retirement, the benefit ceases. However, if a retired CEO is asked to represent Gannett at a function or event and receives prior approval from the then-current CEO, travel accident insurance coverage of $1,000,000 will be provided while on business travel status.
3. Executive Health Insurance. The CEO receives supplemental health coverage with a maximum annual benefit of $25,000 per executive family. (This is in addition to the regular employee health insurance coverage.) Upon retirement, the maximum annual benefit remains unchanged. Upon death, the maximum annual family benefit for eligible dependents becomes $12,500 per year for life.
4. Company Automobile. Upon retirement, the company automobile is offered to the CEO at the fair market value.
5. Legal and Financial Services. Upon retirement, this benefit ceases on April 15 of the year of retirement or the year following retirement, depending on the actual retirement date.
(Click on screenshot, below, for bigger, more readable view)
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Hi, that's a contract. It is binding.
ReplyDeleteThe answers are: "because he has a contract" and "maybe you should grow some balls and demand a contract instead of being an at-will employee" and "well, if you feel silly doing it alone, maybe you should have formed a union" and "well, we're not going to negotiate in good faith with your union."
ReplyDeleteSeems like the company agreed to the contract when he began in the job. I suppoed we all have the chance to have a contract or to refuse a job if a contract isn't something the company will offer. On air personalities have one as well, I'll bet.
ReplyDeleteSo what is your point? Besides the fact that you hate everything Gannett and Gannett managment.
My point is in this section:
ReplyDelete5. Termination of Agreement by Gannett.
(a) Gannett shall have the right to terminate this Agreement under the following circumstances:
(i) Upon the death of Dubow.
(ii) Upon notice from Gannett to Dubow in the event of an illness or other disability which has incapacitated him or can reasonably be expected to incapacitate him from performing his duties for six months as determined in good faith by the Board.
(iii) For good cause upon notice from Gannett. For this purpose, “good cause” means (1) any misappropriation of funds or property of Gannett by Dubow; (2) unreasonable (and persistent) neglect or refusal by Dubow to perform his duties as provided in Section 1 hereof and which he does not remedy within thirty days after receipt of written notice from Gannett; (3) the material breach by Dubow of any provision of Sections 9 or 13 which he does not remedy within thirty days after receipt of written notice from Gannett; (4) conviction of Dubow of a felony; or (5) Dubow’s voluntary resignation as an employee of Gannett without the prior written consent of Gannett.
(b) If this Agreement is terminated pursuant to Section 5(a) above, Dubow’s rights and Gannett’s obligations hereunder shall forthwith terminate except as expressly provided in this Agreement.