Monday, July 04, 2011

Des Moines | Dubow bonus 'could have saved jobs'

That's according to Des Moines Register letter to the editor published yesterday, which notes that 12 of the 700 just laid-off Gannett employees worked for the Iowa daily.

"It seems that not every one at Gannett is sharing the pain," wrote Mark Smith of Des Moines. "MediaPost, a trade journal, in a June 21 article notes that in 2010 'Gannett CEO Craig Dubow and COO Gracia Martore received all-cash bonuses of $1.75 million and $1.25 million, respectively, for implementing cost-cutting measures, including layoffs in 2010.' Dubow's 2010 compensation package was $9.4 million (twice what he got in 2009) and Martore's was $8.2 million (slightly more than twice 2009)."

Worth noting: The MediaPost article, in turn, cited Gannett Blog. Also worth noting: the Register did the right thing in publishing a letter criticizing its parent company.

18 comments:

  1. My guess is that more than 2000 people actually go a bonus last year. So, you are correct, if you did not pay them we could have had kept away from layoffs and could have even had pay increases. That would have saved jobs.

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  2. Three cheers for the Register editors for being gutsy enough to publish the letter. We're sure CD and Co. already has their greed-driven claws sharpened, with names circled, ready for revenge come next quarter.

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  3. 2000 bonuses? There has to be way more than that. Probably double. And the planes and goodies. Ashame on them.

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  4. Gannett is not interested in saving jobs. Gannett wants to be profitable and right now the GMC is unable create a business model without including a print component. Gannett is increasing profits through expense cuts. Expense cuts only goes so far before it becomes detrimental to the product. Our community publishing division has reached this point. In a year or two, small dailies will be in complete control by the closest sister paper. The small papers will resemble a news bureau except for a small sales staff. Eventually the newspaper will look and feel like a shopper. When sales decreases even more, the product will be terminated.

    Gannett has no interest in saving print journalism.

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  5. Thank you Mark Smith. Thank you Mark Smith. Thank you Mark Smith! May others follow your lead!

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  6. This only got in because all the top editors were away on vacation. I fear heads will roll when they get back. Or at least one.

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  7. I'm sure CD already has a call into the newspaper's exec editor ... Have a feeling it won't be pretty for whomever gave the green light here on Tuesday. That said, whoever it was deserves all the respect and kudos in the world for such a brave decision to publish a letter that simply calls attention to the ugly truth here. While it's nice that this blog has constantly reported it, there won't be any check on CD and Co's relentless greed if this doesn't get out to a non-niche audience ... WSJ, where are you?!

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  8. Someone in Iowa is going to either a) get taken to the woodshed or, b) in baseball terms, be waived for purposes of giving them their unconditional release.

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  9. The Journal & Courier in Lafayette also published a letter from a reader critical of Gannett and its corporate leaders in Sunday's paper:

    http://www.jconline.com/article/20110703/OPINION02/107030317/July-3-Letters-editor

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  10. I've thought that the only way they (upper management) would ever get the hint, is to get no less than 25% of the company to walk out for a day. Let's see them explain that one off to investors and rattle our stock price (everybody sell early).

    I know it's a pipe dream. But the publicity it would get on other media and the pure overturning of confidence in GCI would have to bring some major changes. Dubow would loose millions in future stock sales overnight.

    If they even thought of firing one person for it, they would face an even bigger backlash from employees. Think Lybia...when the military was brought in to 'squash' it, it only made it worse. A heavy hand with the 'underlings' never works.

    But maybe I'm getting too inspired by the events on the other side of the world. But I do think there is a 'point of no return' where employees will be tired of the excuses and the manipulation for the benefit of the select few.

    I've already watched more than one top manager (the #3 person in a newsroom of 100+ in one case) walk away instead of laying off top-of-class journalists - purely on the bases of they made too much money.

    Journalism is still the only industry, that lays off its most talented to balance the budget. Never mind the most talented would have brought the content and innovation to turn us around.

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  11. Who was that manager, or at least what site? I need something to counter the notion that everyone above metro editor has sold their soul to the devil.

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  12. No, 5:31, journalism is far from the only industry that lays off its most talented (well paid) to balance the budget. But Gannett is one of the very few (only?) companies to reward its executive officers obscene bonuses and pay raises after they continue to steer the organization to year after year of declining revenue performance. Because increased net income derived from declining revenues = a devalued business, CD and Co. are literally making an incredible fortune by driving the company into the ground. And the more they drive it down, the more they get paid. Without any kind of backbone/outrage as demonstrated by shareholders as directed to what must be one of the weakest board of directors in history, there will be no altering of this sad script.

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  13. I've noiced more branding lately. I think they bought a coupon magazine here in Floida, or I just noticed the "Gannett Company" listed on the front page. It is about making money. Jounalism is a form of dying entertainment now in a cookie cutter fasion produced by overworked, underpaid snot nosed kids. Too many companies are afraid they'll get sued if they attempt to get the real story or lose the next interview if they don't play nice or kiss someone's ass.

    I don't know how these executive jerks sleep on thier high count sheets and fluffy pillows. Some ex Gannetteers are borderline homeless and close to sleeping in boxes. There is no loyalty amoung thieves. If you still work for the death star, get out! Days will never be what they were. Don't be in love with the past. Reinvent yourself and regain some self-respect. While I don't condone it, I can't understand why some hasn't snapped yet.

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  14. I don't think the executives really care if they are criticized. CEO bashing has become popular in America for good reason. But I haven't noticed a rash of CEOs cutting their pay and apologizing out of embarrassment.

    The fact is, these people live in different worlds and are so bottom-line driven that most don't care about anything else. Their mindset seems to be: If I made more money, it's good. If I made less, it's bad. The people that work for them are game pieces to be moved about and nothing more.

    The poster who said a walkout is the only thing that would get their attention is correct. If their plants suddenly shut down creating tremendous losses and making them look bad in front of shareholders they would be concerned. As long as their game pieces tow the line, they have little concern what people are saying about them.

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  15. Hooray for des moines! Whoever approved that letter has my respect

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  16. Bose sound-canceling headphones - $350. I hear no gnashing.

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  17. @3:48 p.m. I can tell you where WSJ, the Wall Street Journal is: in the hands of Gannett. The paper prints on the presses of the Des Moines Register.

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  18. 6:26 Not its main presses, which are in NYC. This is just a satellite plant to handle printing for regional subscribers and perhaps postal deliveries. The NYT does the same for its SF edition. The difference with USA Today is that it used to be largely printed by GCI. Now that is less important as as USA Today rationalizes its printing operations, corporte is abandoning GCi sites for nearby presses owned by others. This should make the true costs of USA Today clearer to corporate.

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