Tuesday, June 21, 2011

By the numbers: layoffs and executive paychecks

"While we have sought many ways to reduce costs, I regret to tell you that we will not 
be able to avoid layoffs." 

U.S. newspapers division President Bob Dickey, in a memo today to employees, announcing 700 layoffs and furloughs for select staff.


$3.4 million 

29 comments:

  1. and who are the fucktards that signed off on that?

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  2. Gannett workers have been told for years to do more with less.

    The rules for executives are converse: do less and get more.

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  3. How do they look themselves in the mirror each day?! Double and tripling their total compensation over one to two years, while the workers get less money due to furloughs and no raises -- and often lose their jobs altogether! These Gannett executives are all 50+ so they can just lay themselves off like they have done to so many of their "experienced" 50+ employees who now are scrambling for a job to hold them over until retirement (if that ever happens!).

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  4. Yeah someone said Gannett stock up 40 cents in reaction to layoffs. Not so. The whole market was up. You should see the next generation of freeloading morons corporate has imported from fort myers and elsewhere. The ineptness should prompt a criminal investigation at this point. You are best served by shorting the stock heavily. Be careful though. The pieces are worth more with these dipshits out of the way so don't still be caught short when the inevitable breakup occurs.

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  5. 3.1%

    The percentage of USCP employees that were terminated.

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  6. "You should see the next generation of freeloading morons corporate has imported from fort myers"- please explain. who from fort myers?

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  7. If Dubow et all were at all interested in the newspaper business, in the quality of the product, the employees who have made Gannett profitable, or had any moral center, they would not keep awarding each other millions in bonuses. They are no different than the white collar crooks at AIG or Halliburton. To believe otherwise is delusional.

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  8. How do Dubow and Dickey and the others sleep at night? I don't think they care if the company survives as long as it survives long enough for them to complete their nest egg that will last them for life. Very sad.

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  9. Oh wait, I'm sorry. I figured out how Dubow, Dickey and the others sleep at night. They have a huge soft pillow filled with cash.

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  10. What is the status of the Salinas Californian newspaper in Central California? When will we know which community papers this effects? Before it's to late?
    So sad to see all the hard work and dedication from all the Gannett employees and then to get a pink slip which in turn results in more $$ in Dubow's pocket. What if the shoe was on the other foot? It's despicable that good, hard working people who have mortgages, family, kids in college, family members with medical needs get layed off while CEO's get a bonus... What ever happend to integrity and morals? I guess Greed blinds the weak! They will have to take up with God.

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  11. Gannett used to publish the salaries of senior newpaper group regional officers in the annual report. They haven't for the past few years so the salary-bloat focus has been on inhabitants of the Crystal Palace. I'd like to know what people like Laura Hollingsworth get paid to disassemble the industry. She's feeding at the same trough as Dickey/Dubow, etc. - and is just as contemptible.

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  12. Emotionally, I am reacting to this news with great sympathy for those who are losing their jobs today.
    However, strictly from a business perspective, Dickey's pay is not in any way directly related to these actions. If he were to decide to donate his 2010 bonus to these 700 laid-off employees, it would only amount to $2,142 each. If he were to donate his entire salary to the remaining employees across the 22k newspaper division staff, it would be just $154 each, per year.
    You can do the same math with the other Gannett executives' pay - and get similarly pathetic "shares."
    The fundamental truth is: Gannett has a huge revenue problem, period. I don't think laying off talented and valuable employees is any sort of direct solution for that problem - but neither is demonizing the pay the executives receive.
    I believe the entire payroll expense from the Crystal Cathedral in Mclean could be donated back to the company, and they would STILL be forced to do massive layoffs - if the goal is to offset the revenue declines with expense cuts.

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  13. It would be refreshing for folks like Hollingsworth and others to tell GANNETT "F" "U" "I'm not doing this anymore" But, the money is too good. She like many others will ride the thing into the turf. Then, when their number is called, they'll take a job for 1/2 the money they're currently making.

    They all drink the kool-aid. It's either that or forget the career opportunities. Thankfully some of us don't sell out and frequently question authority.

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  14. Good day's work, Dickey. Guess you earned more than enough today to buy yourself a new 14-piece set of platinum and gold Honma golf clubs, which carry a $32,000 pricetag, plus a Barth & Sons golden putter ($4,200). They will make it easier to put to use that company-supplied, work related (certainly) golf club membership.

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  15. 6:35 wrote "Dickey's pay is not in any way directly related to these actions."

    That sentence is incorrect.

    Last year, the board of directors' executive compensation committee said the following about the cash bonuses given to Dickey and other named executive officers (NEOs); it's from Gannett's own filing with federal securities regulators:

    "The Committee considered the following accomplishments by the Company and its management team in 2010 in reaching its NEO bonus decisions."

    The committee then listed those accomplishments, the final one of which was:

    "The Company achieved substantial expense reductions through a variety of efforts, including continued centralization and consolidation efforts and salary freezes, positioning the Company for growth as economic conditions improve."

    Bottom line: The board of directors itself said that one of the accomplishments for which Dickey & Co. got millions of dollars in bonuses was layoffs and other payroll reductions.

    I expect similar language next year when bonuses are disclosed for 2011.

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  16. Kate Marymont---Come Out, Come Out Wherever You Are?

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  17. Yes, still waiting for the list of papers to get hit with reductions.... tick tock!

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  18. ...And don't forget those 12 trips Corporate execs took expense-free on the corporate jet to Newfoundland last year, as unearthed recently by the Wall Street Journal. I still can't figure out the Nfdl. connection, but I know it involved a trip that was absolutely necessary for GCI's survival.

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  19. 6:35 is wrong and extending what Jim wrote at 6:47…

    If you were to take the Top 5 Gannett executives total compensation for 2010 , it adds up to *$28,609,659.

    Let's be generous and say the executives keep their combined salary of $3,569,392. for the amazing job they do, which leaves us their "bonuses" totaling $25,040,267. to divide up between the estimated 700 who lost their jobs today. Each one of those 700 would receive $35,771.81.

    I don't know about you 6:35, but in a lot of places, that's a full years salary.

    (yes, I'm aware there's stock and other items in the compensation package, but at the end of the day it's still money)

    *SEC Schedule 14A (filed 03/24/2011), Summary Compensation Table, pg 33.

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  20. I think 6:35 is struggling with their conscience.

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  21. I'd say "pigs," except that would insult swine. Dubow, Dickey, et al are simply immoral, or a-moral, people, plain and simple.

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  22. What actual work of any value is done at the corporate level, especially by Dickey? Gannett is a collection of local sites. I suggest the company could simply eliminate its corporate-level news people to save money. They do no work. They are quite literally parasites.

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  23. Dickey, Dubow, and Gracia are going to rot in hell. That gives me comfort and helps me sleep at night.

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  24. 6:58 get your facts straight for gosh sake. the plane stops in Newfoundland as an exit and entrance to North America. All non commercial aircraft have to have such a point. Newfoundland is not crowded with easy access. No one is taking party trips to Newfoundland. Come on folks if you are going to pund people get your facts correct. Oh that's right thesis the G Blog

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  25. 9:39: Does it really matter? I don't see why that plane needs to be going overseas in the first place.

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  26. Same old tired message from Dickey., he either needs a new script writer ..........or a new direction.

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  27. Every Democratic political candidate should use Gannett executives as examples of why tax cuts for the wealthy don't work.

    They're making more money, and they're not creating jobs. They're shedding them. So why do they deserve a tax cut?

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  28. 6:58 and 9:54 I'm guessing they landed there to refuel.  Execs go overseas because Gannett owns News Quest and other foreign properties.  Before you open your mouth and write nonsense please understand and know what the company owns before you make stupid ass comments.

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  29. 10:52: From what I've read, newspapers overseas are still profitable. The Execs from corporate are clueless as to how to run a newspaper, therefore, they have no business going overseas. Let the Execs overseas man their own ship. I stand by what I said.

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Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."

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