The "golden parachutes" for top executives have soared in value, the new shareholders proxy report shows: CEO Craig Dubow would collect $39.2 million, if Gannett gets sold. That's up 31% from the year before, when it was $29.9 million, the document shows. President and Chief Operating Officer Gracia Martore would get $23.3 million vs. $13.9 million the year before.The value of these payments shift annually with pay raises, plus revaluation of stock options and so-called restricted stock units.
Given the newspaper industry's declining financial prospects, it's unlikely that anyone would buy Gannett anytime soon. Still, the company -- as many in Corporate America -- considers the threat seriously enough to include potential payouts for its five highest-paid executives each year in the proxy report. Details start on Page 53 of this year's report.
Defining change in control
It's defined as: (1) the acquisition of 20% or more of Gannett's then-outstanding shares of common stock or the combined voting power of the then-outstanding voting securities; (2) incumbent directors cease to constitute at least a majority of the board, except in connection with the election of directors approved by a vote of at least a majority of the directors then comprising the incumbent board; (3) consummation of Gannett's sale in a merger or similar transaction or sale or other disposition of all or substantially all of its assets; or (4) approval by shareholders of the company’s complete liquidation or dissolution.
Click on the image below to see a bigger and more readable table showing details of potential payments for Dubow and Martore, plus U.S. newspaper division President Bob Dickey, USA Today Publisher Dave Hunke, and Chief Digital Officer Chris Saridakis:
And what is the point of this? Is there any company in the free world that doesn't have similar programs?
ReplyDeleteAssuming you're a shareholder: Why would this executive benefit be good for you? How is it anything more than a pricey giveaway?
ReplyDeleteThe point of this is that this is a blog about Gannett, and the information on benefits given to Dubow and other GCI executives are of interest to readers who come here to learn more about how their company operates. You seldom get this information anywhere else these days, and our jobs depend on the well-being of this company. If you don't like reading it, no one is forcing you to read this blog.
ReplyDelete