Mother Jones magazine ranked Craig Dubow No. 6 on its recent list of 10 chief executives who got rich in 2010 by squeezing their workers -- a year when corporate profits grew an average 38.8%, the biggest gain since 1950.
Dubow -- who in Mother Jones' research got $7.9 million, up 80% -- was in Blue Chip company. No. 1 on the list: Michael Duke, CEO of Wal-Mart. Although his pay dropped a smidge, 4%, to $18.7 million, he cut 13,000 jobs vs. Dubow's 2,400, the magazine said.
For its article, Mother Jones used a more conservative estimate of Dubow's annual compensation, one compiled by the Associated Press that doesn't include certain amounts. Including all the items in Gannett's own regulatory filing, Dubow got $9.4 million -- double his 2009 pay.
Dubow has another distinction: He was the only CEO to appear on two recent Mother Jones lists. In late April, Dubow ranked No. 10 on the magazine's list of the most overpaid chief executives, based on their paychecks and the lackluster performance of their companies' shares. GCI stock closed Dec. 31, 2010, at $15.09 vs. $14.85 at the end of 2009, Google Finance says.
"These 10," the magazine said at the time, "vividly illustrate what veteran compensation consultant Bud Crystal views as a broad problem in many boardrooms: 'You have almost no relationship between pay and performance when it comes to the CEO.'"
For that story, the magazine offered another quote on Dubow's 2010 pay -- from a Gannett Blog reader. "Pure and simple," the reader wrote, "a laugh in every employee's face."
Related: about Mother Jones.
[Image: the May-June issue's cover]
For its article, Mother Jones used a more conservative estimate of Dubow's annual compensation, one compiled by the Associated Press that doesn't include certain amounts. Including all the items in Gannett's own regulatory filing, Dubow got $9.4 million -- double his 2009 pay.
Dubow has another distinction: He was the only CEO to appear on two recent Mother Jones lists. In late April, Dubow ranked No. 10 on the magazine's list of the most overpaid chief executives, based on their paychecks and the lackluster performance of their companies' shares. GCI stock closed Dec. 31, 2010, at $15.09 vs. $14.85 at the end of 2009, Google Finance says.
"These 10," the magazine said at the time, "vividly illustrate what veteran compensation consultant Bud Crystal views as a broad problem in many boardrooms: 'You have almost no relationship between pay and performance when it comes to the CEO.'"
For that story, the magazine offered another quote on Dubow's 2010 pay -- from a Gannett Blog reader. "Pure and simple," the reader wrote, "a laugh in every employee's face."
Related: about Mother Jones.
[Image: the May-June issue's cover]
I can think of another mother related term when it comes to Craig and his merry band of thriving incompetents.
ReplyDeleteThe job cuts are out of context in that list. For example, Duke cut 13,000 jobs at Walmart, but what percentage of the total positions in the company was that?
ReplyDelete8:53 Good point, which Mother Jones didn't address.
ReplyDeleteThe Wal-Mart cuts equaled 0.7% of its 1.9 million workers. Gannett's was much bigger: 7.4% of 35,000.
Dubow and his lieutenants have been exposed as greedy swine by both Forbes and Mother Jones.
ReplyDeleteWho says we all can't get along?
Walmart is actually a successful company. Can anyone say that about Gannett?
ReplyDeleteI won't defend some of Walmart's practices, and trying to collect money from them is worse than tilting at windmills. Walmart pays what it wants to pay when it wants to pay it. AND vendors have to jump through all sorts of hoops before being allowed to sell to Walmart. But a successful sale to Walmart does wonders for revenue numbers...
I'd also question whether the Walmart cuts were actual layoffs, or attrition. The article isn't clear.
The fact that Gannett is being compared to Walmart here says a lot. Employees might as well work for one as the other. Neither company offers a substantial number of careers. They offer short-term jobs, and the sooner you're out the better.
ReplyDeleteIt’s one thing to reward leaders for guiding a business through troubled times, it’s entirely anther when people like Dubow are clearly overly compensated for it. More so, in that many believe this lot's tenure has only exacerbated Gannett’s problems.
ReplyDeleteTo be fair, few would have likely given those increases back, but watching Gannett’s leaders take that money all while further enriching their egos at their alma maters via Gannett Foundation funds (courtesy of Jim’s coverage) versus directing it toward employee scholarships says a great deal about their character and motivations, none of which is complimentary.
What a tremendous honor for Mr. Dubow. Swine amongst swines.
ReplyDeleteWell, at least he's not # 1. Something to reach for.....
ReplyDeleteI'm sure Dubow's family is so proud of him. Some articles for the scrapbook! Maybe these "honors" he has earned can be published in his alma mater alumni publications and websites! Way to go Craigy!
ReplyDelete5:17 Your point is well taken since Walmart employs 2.1 million. But let's keep in mind that 13,000 layoffs is still 13,000 people who no longer have jobs. But if your point was to show that Gannett has laid off a much higher percentage of their workforce than Walmart or any other company, I would place bets that is probably true.
ReplyDeleteAnd also let's keep in mind those Gannett people, out of a livelihood, ALL got screwed with Transitional Pay. No severance. Gannett would prefer to tax their host state's unemployment funds, instead, and pay chump change.
ReplyDeleteLove the name, "transitional." As if one just transitions, no biggie, to another job in this economy. Some do; most don't. Arbeit Macht Frei.
ReplyDelete7:36 that is so out of line. Nazi comments? Really?
ReplyDelete9:30 Not necessarily Nazi. It originally was a French saying by the French shrink Auguste Forel, pre-dating the Nazis and from the 1920's. In French le travail rend libre.
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ReplyDeleteThe problem with Gannett is that the fox is guarding the hen house. Dubow et al own the shares to vote themselves in as CEO, CFO, and KMY. Since they control the vote, they determine everything. It's a bad system.
ReplyDeleteThe problem with Gannett is that the fox is guarding the hen house. Dubow et al own the shares to vote themselves in as CEO, CFO, and KMY. Since they control the vote, they determine everything. It's a bad system.
ReplyDelete5/18/2011 1:39 PM
Dubow is a poor CEO, but the shares him and even the collective top executives own is extremely small (the amount they own they could do nothing with). Almost all of the shares are owned by investment groups.
And also let's keep in mind those Gannett people, out of a livelihood, ALL got screwed with Transitional Pay. No severance. Gannett would prefer to tax their host state's unemployment funds, instead, and pay chump change.
ReplyDelete5/17/2011 7:33 PM
I agree that latching onto a government entity to pay your "severence" is outrageous. However, as far as the individual is concerned the amount of money they receive is the same, the one downside is that you cannot receive your pay and get other job and collect both.
Whoever came up with transitional pay is a gannett genius. Can you imagine how much this saves as you cut half your employee base. Get this guy a diamond encrusted president's ring, stat!
ReplyDelete