Gannett execs take big 'haircuts' in stock plunge

[Chart shows net options value at recent $19.69 high vs. today]

Four top executives own hundreds of thousands of stock options, giving them the right to buy shares from the company at fixed prices, the so-called strike price -- no matter how high the stock rises in the open market.

Unlike those granted years ago, these options are actually worth something, because they were awarded to the executives this year and last, when Gannett's stock was trading at comparatively lower prices.

After the recent market tumult, however, their options are now a whole lot less valuable. For example, CEO Craig Dubow's 980,000 options were worth a princely $10.2 million, net of cost, as recently as April 16, when shares hit their last high: $19.69. (Historical prices.)

But since then -- and especially in the past two days -- GCI has plunged with the broader stock market on worries about European government debt. Today, for example, Gannett's shares closed at $15.05, down 53 cents, or 3.4%. Based on that price, Dubow's options have tumbled in value to about $5.7 million. (Of course, we should all be so poor.)

(Updated at 7:55 p.m. ET with closing stock price.)

My methodology
For the stock geeks out there: These dollar values are net of cost -- that is, their value after subtracting the cost of exercising the options at the relevant strike prices.

Earlier: insiders recently sold options for up to $18.09 a share. Plus: taking stock of two directors's GCI ownership

Do you own any Gannett stock? Where do you think it is headed in the near term? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.