But public documents tell a different story on the pure-digital side, a select group of operations overseen by Chief Digital Officer Chris Saridakis (left); they likely include Pointroll, Captivate, Ripple6 and MomsLikeMe. In regulatory filings, Gannett hasn't identified the specific operations, except to say they aren't CareerBuilder, Topix, Classified Ventures, fish4 and s1 in the U.K.The new shareholders proxy report reveals that, for the second consecutive year, the Saridakis operations failed to reach minimum, or "threshold," revenue and profit goals last year. The goals were set under a four-year bonus contract created for Saridakis soon after he was hired in late 2007. His contract is called the Digital Long-Term Incentive Plan, or DLTIP; it's outlined in the annual 10-K report for 2008 (look for Exhibit 10-16-1).
"The company did not achieve the threshold DLTIP performance goals for either 2008 or 2009," the new proxy report says on Page 34, so no "DLTIP award" for Saridakis was earned for either year.
The shortfall is significant news. Subsidiaries such as Pointroll, an advertising software company, are meant to be crucial revenue engines in an increasingly competitive market led by Google, Facebook and other tech ventures. Moreover, CEO Craig Dubow's $3.1 million in 2008 pay was based partly on his hiring Saridakis, U.S. Securities and Exchange Commission documents show.
Under the DLTIP, Saridakis is to get a targeted payment of about $4 million in February 2012 -- if the revenue and profit goals are met. However, the new proxy report shows Saridakis actually could earn up to $6 million. For competitive reasons, Gannett is keeping the revenue and profit targets confidential, under an accord reached last month with the SEC.
There's little time to waste, the new proxy report says: "The company believes that achievement of the DLTIP performance goals over the next two years will require significant effort and substantial progress toward the goals of the company’s strategic plan."
Yes, this has been rumored around the Crystal Palace for the last two months. I personally believe the Internet is turning out to be a fad, and interest in blogs, Twitter, etc., is waning fast. ..Yet I see he got an annual bonus this year, as you already reported.
ReplyDeleteIn my opinion, Saridakis is a fraud. The Ripple6 that Dubow snapped up from him was an operation that advertising biggies like Procter and Gamble, etc., experimented with, but didn't continue. Profiling customers doesn't provide the sort of information advertisers want, as GCI now is finding out. I talked to a new mother about Moms Like Me, and she said her friends advised her not to use it because of the profiling.
ReplyDeleteJim,
ReplyDeleteSaridakis is Dubow's golden child. He has full run of the house. Btw someone told me that Point roll earned over 50 million last year on revenues of 100 million. What percent of Gannett's earnings is Point roll?
Anon 3:26p...if Saradakis is a fraud then he must have a lot of smart people fooled because my husband, who works at a top executive recruiting firm, tells me that he is one of the most sought after digital media executives and could write his ticket anywhere. I do not know why he chooses to be at Gannett!
ReplyDeleteAnon 3:26p...if Saradakis is a fraud then he must have a lot of smart people fooled because my husband, who works at a top executive recruiting firm, tells me that he is one of the most sought after digital media executives and could write his ticket anywhere. I do not know why he chooses to be at Gannett!
ReplyDelete3/24/2010 5:18 PM
It's obvious...
He's getting paid big bucks to be on a 2 year vacation in a a suit and tie.
If Saradakis can write his ticket anywhere, he should do it. His operation is not producing the revenues that were promised. Look at the last quarter, and you will see digital revenue declined over the previous quarter. We won't get similar data in the future because GCI Is taking digital revenues dark. If he leaves, he leaves his baby Ripple6 behind since GCI bought it.
ReplyDelete6:34 pm: The last quarter's digital revenue were for all properties, including especially CareerBuilder, which isn't in Saridakis' portfolio. And CareerBuilder was a significant contributor to the digital sales decline.
ReplyDeleteAs I noted, Gannett doesn't identify the specific digital operations for which he is responsible, so it's impossible to know their exact performance.
"The company believes that achievement of the DLTIP performance goals over the next two years will require significant effort..."
ReplyDeleteTRANSLATION: "We're going to have to cut more jobs at the profitable units to make up for the underperforming digital division."
Anon 4:59p
ReplyDeleteIt is true that Pointroll is Gannett fastest growing business. Saridakis mentioned this in his remarks at their recent analyst meeting last week. He mentioned that Pointroll does over "50% operating margins". I know for a fact that they will do well over 100 million dollars this year in revenues (source is a USAT finance staff member).
If you look at Gannett's operating income for 2009, then Pointroll was responsible for about 10%. Not too bad for a company that has 250 employees!
Mrs. Saradakis,
ReplyDeleteChris should go ahead and write that ticket elsewhere if he's that hot. He's produced little heat at Gannett.
I'm not a frequent user of this site but a couple of the comments here shocked me. The Internet is a fad? Digital division does not deserve investment? If this mentality still exists at Gannett -- or anywhere in the newspaper business -- then things are worse for print than I thought.
ReplyDeleteSaradakis is laughing his way to the bank and hiring all his former buddies in the process. Gannett Digital is spreading themselves too thin ignoring the true products that put them in a strong position. Saradakis only cares about Pointroll & Ripple 6. Competitors don't take Gannett seriously
ReplyDeleteAll his boys should leave with him. His Doubleclick clowns!
ReplyDelete