News of Craig Dubow's $37.1 million retirement and disability payout last week couldn't have come at a worse time. Disclosed in a regulatory filing, it arrived amid Occupy Wall Street protests meant to shame Corporate America into reforming executive pay. The result: even more attention on Dubow's bounty.
Yet, lost in the mix are details about how much Gracia Martore, 60, could get under different scenarios in her new role as Dubow's successor. One Gannett Blogger asked me specifically about her golden parachute: what she'd receive in the unlikely event Gannett was sold, a so-called change in control.
I'll start there, using the latest figures from the spring proxy report to stockholders. The following estimated payments upon her exit would almost certainly be higher when Corporate discloses her new compensation as CEO in the days ahead.
Change in control: $34,068,711, as follows:
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I'll start there, using the latest figures from the spring proxy report to stockholders. The following estimated payments upon her exit would almost certainly be higher when Corporate discloses her new compensation as CEO in the days ahead.
Change in control: $34,068,711, as follows:
- Pension: $12.4 million
- Stock options: $2.5 million
- Restricted stock awards: $4.2 million
- Severance: $8.1 million
- Excise tax gross-up (so she needn't pay income taxes on this payout): $6.9 million
- Pension: $8.5 million
- Options: $2.5 million
- Restricted awards: $4.2 million
- Disability benefits: $4 million
- Additional benefits: $4.4 million
- Pension: $6.7 million
- Options: $2.5 million
- Restricted awards: $4.2 million
- Life insurance: $2.7 million
- Additional benefit: $4.4 million
- Pension: $6.7 million
- Options: $2.5 million
- Restricted awards: $4.2 million
So, does this mean that if Dubow had just "retired" then he would have received a far smaller payout? It seems that Dubow purposely went out on disability to get the larger payout. Could he have chosen to plain old retire and just received a few million?
ReplyDeleteHonestly, I just don't get why the amounts for CD and GM are so high. Gannett isn't exactly as large as a company like GE. Did these two just set the amounts themselves? Was the board smoking something when it approved these compensation figures?
ReplyDeleteHow much did the CEO prior to CD get to retire/go away? How does that compare in terms to the company's total net worth then and now?
2:12 Yes: He would have gotten about $15 million less, as I outlined in this post a month ago.
ReplyDeleteNow Gracia will have to find a way to leave on disability.
ReplyDeleteIf you were Martore, wouldn't it be in your benefit cause a "change in control"?
ReplyDelete@2:12 here. Thanks for the explanation, Jim. I didn't think it was possible for me to be more appalled by Dubow than I already was, but now I am. What a blatantly greedy move and just proves to me that these guys are only out for themselves.
ReplyDelete2:16 I can answer part of your question. Dubow's predecessor as chairman and CEO was Doug McCorkindale, who retired as chair in 2006.
ReplyDeleteThat year's proxy report did not disclose dollar amounts for his retirement, disability or golden parachute benefits, because of different regulations in force at the time.
This paragraph, however, will give you an idea:
Mr. McCorkindale’s employment contract will be renewed from year to year until either the Board or Mr. McCorkindale terminates it on 90 days’ notice before the end of any term. During his employment, he will receive an annual salary of $1.6 million or such greater amount as the Executive Compensation Committee determines and an annual bonus at the discretion of the Executive Compensation Committee. Under the terms of the contract, Mr. McCorkindale received on July 1, 2004 and July 1, 2005, a restricted stock unit award. These awards vest with respect to 1,603 shares of Gannett common stock per month for a 12-month period that commenced on July 1, 2004, and July 1, 2005, respectively. Any portion of the restricted stock unit grants remaining unvested shall be forfeited upon Mr. McCorkindale’s termination of employment for any reason. All Gannett stock options granted to Mr. McCorkindale after July 21, 2003, shall become fully vested within four years from the date of the grant, will continue to vest after Mr. McCorkindale’s termination of employment and shall remain exercisable until the fourth anniversary of Mr. McCorkindale’s termination of employment. In connection with entering into the employment contract Mr. McCorkindale also received a grant of 1,941 stock units. The contract provides for various executive perquisites prior to and following his retirement, generally consistent with those received by prior Chief Executive Officers of the Company, including life insurance, travel accident insurance, executive health insurance, legal and financial counseling services, a home security system allowance, an automobile purchase or monthly allowance, and an allowance for club membership fees. In addition, the Company will provide Mr. McCorkindale substantially similar post-retirement benefits for the remainder of his life as well as ownership of the computer and other home office equipment used at the time of retirement, use of Company aircraft at the then-incremental hourly rate and at times not inconveniencing the Company, and reasonable access to Gannett offices and facilities. Due to the extension of his employment contract, Gannett is obligated to provide Mr. McCorkindale additional life insurance benefits under its existing life insurance program at a cost to the Company of approximately $150,000. Gannett will make available to Mr. McCorkindale this sum of $150,000 for his use in acquiring life insurance or other benefits of his choosing, whether otherwise offered by the Company or not, before or after retirement, in addition to those benefits otherwise provided to him under the contract or by other Gannett benefit policies covering him.
In an e-mail, a reader asked me to post the following:
ReplyDeleteMy retirement is about $50K, but had to stop contributing when the work went dry. I tried to post a comment on the blog but it didn't come through.
My question is this: If people here are so sick and tired of Gannett, why don't they just go on strike?
I keep thinking there will be a site some day where everyone is so fed up they just won't care what happens as they all walk out the door together.
ReplyDelete2:48PM That will NEVER happen, as reasonable as it sounds. While most employees are fed up and complain on this blog about it, they still come to work and kiss ass daily. I know, I see it happen. Usually the biggest complainers out of earshot are also the biggest suck ups.
ReplyDeleteAll this makes me kind of glad I got laid off. Now I can join the Occupy movements to protest this kind of corporate greed without having to worry about being fired.
ReplyDeleteAnother cow feeding at the company trough.
ReplyDelete5:28 --- pig is more like it.
ReplyDeleteGo on Strike? In this economy? In this business, where management could replace us in a heartbeat with all the other media people out of work? That would be steering the Titanic into the North Pole. And 4:12, your TROLL SOUL is showing. Go suck up to corporate and collect your $20.
ReplyDeleteWhat's the matter, 6:52, you afraid a site might try it? I'd like to see them replace that many people in a week's time.
ReplyDeleteAnonymous posters would never participate in a sick out. That would mean exposing themselves. That's not how cowards work. They'd rather hide and criticize. Sorry if the truth hurts.
ReplyDeleteWhy do we care..work hard or not these people negotiated better salaries so don't be haters. We don't know what the sacrificed to get to the top, know you people are mad with the. Get a life. Worry about your own salary. Has anyone ever run a major multi-billion dollar media company before? Do tell..
ReplyDeleteGM gave a tremendous speech to USAT leaders today. Get ready haters, it's going to be harder and harder to hate her. She's no CD. You go girl!!!!
ReplyDelete10:35 - Run a multi-media company where? Into the ground? Only successful leaders deserve that kind of payout.
ReplyDelete10:04 Are you the pot or the kettle?
ReplyDeleteYes, she was far more dynamic than cd ever was. But she was surrounded by several vice presidents of dubious talent and non descriptor job titles.
ReplyDeleteIf she wants to make her mark, she needs to streamline management fast. If USA today is the crown jewel she claims, she needs to embolden the staff to get it's act together, fast! We want to believe in you, gracia. But we need more than rah rah and rhetoric.
Start with that gladhand Dave Hunke. Then Rudd Davis and Heather frank. Put real journalists in charge of the verticals.
ReplyDeleteWe would love to have Ms Martore visit with actual journalists. Come on over and visit the newsroom sometime.
ReplyDeleteReal and actual journalists who post here anonymously?
ReplyDeleteFail.
12:12 Did she really say that USAT is Gannett's "crown jewel?"
ReplyDeleteFor the kind of money she's making, she had better be able to do more than deliver speeches. Parrots can deliver speeches.
ReplyDeleteYes she did Jim. I'm telling you things are already changing. The haters will hate but everyone else things are already changing.
ReplyDelete12:22am Pot.
ReplyDelete7:06 a.m. Fail. Epic.
ReplyDeleteThat retirement package for Nazia is consummate verification of Peter Lewis' blog:
ReplyDeletehttp://www.peterlewis.com/2011/10/10/to-the-barricades/
6:46 If Martore truly believes USAT is the crown jewel, why has she stood by while Hunke and his predecessor systematically dismantled the paper?
ReplyDeleteIs she blaming that strategy on Dubow? Did she tell USATers this week that she's going to pour more resources back into the paper? Without that sort of pledge, Martore's comments are just empty talk.
Martore can still believe USAT is the crown jewel while all along playing a role in its ruinous course. I'm glad to here our "leaders" are all stoked-up about her speech. But it's her DEEDS that will define her!
ReplyDeleteOne thing is for sure: That lady can smell BS a mile away and now that DB is gone she should have no problem to spot it. If we know one thing about Gracia is that she doesn't suffer fools lightly.
ReplyDeleteThere will be long hard looks at the leadership in general (not just USAT), but across all platforms. And, boy, does Gannett need a vigorous cleaning out of wasted bodies in management!
In all fairness it wasn't only Gracia and Craig Dubow cutting employees. They received the hit lists from the management team. Yet I have to hear that just one of them was biting the bullet not accepting their bonuses. If each of them would have done so, maybe we didn't need to lay off so many employees.
Happy hunting, Gracia!
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ReplyDeleteAre you sure she didn't mean USAT is her crown jewel for layoffs? I wouldn't trust her comments with a yardstick.
ReplyDeleteWhy do you say that, 2:06? I want to believe nothing more than this woman has the employee's best interests at heart and that she is wanting to change the employee's perception of Gannett so that we can get back to doing what we do best as a unified company. Is that impossible, at this point? Is your statement because you know her personally, or is it because you just don't trust her based on prior happenings?
ReplyDeleteHunkes days are numbered, yesterdays odd speech just confirms it.
ReplyDeleteHunke's totalitarian references were truly bizzare. What was he thinking after Gracia made such an impassioned speech? He isnt getting a phat exit package...
ReplyDeleteWhat did Hunke say?
ReplyDeleteLets hope her five years to retirement plan includes a sound management plan for the crown jewel. And a successor on waiting for her throne.
ReplyDelete@4:11 I do know Gracia and she is just as cold-blooded and ruthless as the rest of them, maybe even more so. Do not be fooled. She has been pushing the dismantling of USAT for years and she is not going to stop now. She will eliminate anyone who might disagree with her. If you want proof, look no farther than the hire of Maryam and David Payne and the subsequent reallocation of USAT staff to report into them. Maryam and David were Gracia hires 100% and she has no plans to move that staff back to USAT. She doesn't give a hoot about USAT employees, she just wants her "crown jewel" to feed her coffers.
ReplyDelete5:22 it must be tough to have your feet buried in the past. Old USAT is over. New USAT is on the horizon. Payne and MB are just part of the future. Come with us dude. It's scary but you can do it
ReplyDelete@6:03 I am not a dude and I have already moved well beyond USAT. I just want to warn folks who think that Gracia actually cares about them or USAT. She doesn't care and I know because I have seen it first hand.
ReplyDeleteMaybe sometime on the near future MB can justify her salary.
ReplyDelete6:39 For everyone else, MB is Chief Marketing Officer Maryam Banikarim. (I assume.)
ReplyDelete6:39 - She hasn't justified it yet, that's for sure. Can anyone in this company justify their salary with something original and innovative?
ReplyDeleteYou people are sad. Go get another job somewhere else if you don't like Gannett or gracia. Dont hate because she is so paid and you are not. Get a life. Lol. Just funny, funny, funny. I hope she does layoff some more people maybe she get some of the haters on this blog....
ReplyDeleteIt's really a matter of how much more money can these people suck out of a shrinking company? Couldn't Dubow afford tire changes on his wheelchair with $21 million? What's the need for more?
ReplyDeleteDitto for Martore....Why does she deserve bonuses? For what? It's absolutely obscene to cut thousands of people and simply shift what were their salaries and benefits into the pockets of Dubow, Martore, Dickey, etc. And that's basically what they did.
12:51, 11:48 here. I don't work for this company so there is no need for me to get a job somewhere else. I read this blog because I am a psychology student and I'm doing a paper on Gannett and the way it treats its employees versus how that affects their bottom line. Just an observation....Corporate is stupid for not giving its employees the credibility they deserve. You can't successfully run a company when the employees aren't on board with your mission. And, for the record, I don't see anything new and innovative coming from the corporate leaders which would give me some indication that this company can pull out of this mess and succeed. But that's another class.
ReplyDeleteGreat. Now we're getting business and life lessons from a college kid....a frickin' PSYCH major at that. Jim, next can you poll a SF kindergarten, maybe, on what they think of Dubow?
ReplyDeleteMr. Psyche student "I read this blog because I am a psychology student and I'm doing a paper on Gannett and the way it treats its employees versus how that affects their bottom line."
ReplyDeleteI sure hope you're interviewing employees that don't write on this blog because the few here may be loud but don't represent the whole by a long shot.
4:11, either you're new to GCI or don't work in McLean. I'm with 5:22, who described her well.
ReplyDeleteI'm willing to give her the benefit of the doubt, a second chance if you will. Don't squander it Gracia. Prove the naysayers wrong. Be bold, clean house at the management committee level, invest in people and the content being produced. Don't surround yourself with "yes" women and men. Talk to the employees who are producing content. Listen. Avoid acting as if you're the smartest person in the room. Invite dissent. Be wise, be humble, be tenacious. Demand excellence from yourself and others. Good luck. Gannett needs a real leader.
ReplyDeleteA second chance, 2:19? She's been near the top at GCI long enough for the inside people, who have worked in the same building with her for years, to know what she's really like. She was McCorkindale's pet, and she controlled Dubow's puppet strings. Trust me, we've seen enough.
ReplyDeleteI had an idea back when Gannett stock was down to about $1 a share. I wanted to get as many Gannett folk to throw in $100 or more as a single group to buy as much one dollar stock as possible in one shot, which would conceivably result in us (the workers) owning a good chunk of the big G. I never ran the numbers, but it seemed like a good idea at the time. GCI is at $11 right now, we could still do it but it would take a bit more cash (and probably more employees than we currently have).
ReplyDelete