 |
| Zidich |
One of Gannett's most powerful publishers, Zidich was promoted to president of the regional West Group of U.S. newspapers in December.
Earlier: Awkward times for one of GCI's top publishers
Thursday, March 31, 2011
Phoenix | In Fiesta Bowl scandal, a key question
One of Gannett's most powerful publishers, Zidich was promoted to president of the regional West Group of U.S. newspapers in December.
Earlier: Awkward times for one of GCI's top publishers
USAT | Reversing course, Rhee backs test probe
From a new USA Today story:
"Former District of Columbia public schools chancellor Michelle Rhee now says that she is "100% supportive" of a broader investigation into standardized test scores in the school district she used to oversee, just days after she dismissed a USA Today investigation that showed high rates of corrected answers on student test sheets."
As D.C's controversial public schools chief until October, Rhee rode soaring student test scores to a national reputation as a model education reformer. She has since organized a non-profit, StudentsFirst, which is trying to raise $1 billion to promote education reform.
Earlier: How real were school gains under Rhee?
 |
| Rhee |
As D.C's controversial public schools chief until October, Rhee rode soaring student test scores to a national reputation as a model education reformer. She has since organized a non-profit, StudentsFirst, which is trying to raise $1 billion to promote education reform.
Earlier: How real were school gains under Rhee?
Phoenix | Gannett Local isn't kid(ney)ing around
Just-fired Gannett Local employee Amy Donohue got canned on Tuesday for failing to meet sales goals, just weeks before she planned to donate a kidney in April to a woman she met through Facebook.
"How can I not say I've been distracted, because I've got kind of a big thing going on in my life,'' Donohue conceded, in an interview with KPHO-TV. The CBS station competes against Gannett's KPNX, the NBC affiliate Phoenix.
Earlier: At Gannett Local, get paid to practice putting
"How can I not say I've been distracted, because I've got kind of a big thing going on in my life,'' Donohue conceded, in an interview with KPHO-TV. The CBS station competes against Gannett's KPNX, the NBC affiliate Phoenix.
Earlier: At Gannett Local, get paid to practice putting
Stock | Analysts raise forecast to $18 a share
[Updated at 4:18 p.m. ET.] Gannett's stock closed moments ago at $15.23, down 34 cents, or 2.2%, after media stock analysts at Benchmark Co. boosted their price target on shares to $18 from $17. Their recommendation came in a note to investors yesterday, American Banking & Market News reports today.
Benchmark's note follows a flurry of up-and-down analyst recommendations on the stock over the past week, here and here.
Benchmark's note follows a flurry of up-and-down analyst recommendations on the stock over the past week, here and here.
Sponsors | This just in, from the Peach State
- Reader donations: $1,977
- Advertising: $2,281
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. To pay by credit card or PayPal, please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.Asbury Park | A high-five from a high-profile reader
-- singer-songwriter Bruce Springsteen, in a letter to the editor yesterday to New Jersey's Asbury Park Press, praising the paper's Sunday story by Michael Symons, "As poverty rises, cuts target aid." The online version of his letter has drawn 156 comments. Springsteen lives in nearby Colts Neck.
USAT | What's more interesting than sex?
"It's sleep," according to USA Today, which just moments ago announced the launch of five "female-focused" blogs on its Your Life vertical devoted to health, beauty -- and, of course, advertisers. Your Life itself got launched five months ago.
One of the new blogs -- Sleep Matters -- will be devoted to just that: "how to get enough of it and why it's so vital to our all-around health."
Its author is Dr. Qanta Ahmed, who has a private practice in New York and is an associate professor of medicine at SUNY.
According to USAT's announcement, Ahmed offers advice on emerging sleep research, the complicated world of sleep disorders as well as trends in how the American public's lack of sleep can affect mood, weight, health, work and family.
Z-z-z-z-z-z-z . . .
Ooops. Cue Heather Frank, USAT's vice president of consumer media. "The addition of these fresh female voices,'' she says, "continues the USA Today commitment to publishing news and advice on topics that are vital to American families' health and well-being."
The other four blogs are focused on:
The most recent post from Ellen Seidman's OwnIt beauty blog: Last week was full of compliments on how good she looked. Different makeup? Nope: "For the first time in months," she says, "I'd gotten eight hours of sleep several nights in a row. It was absolutely, positively depressing: this realization that I actually looked better with sleep."
According to USAT's announcement, Ahmed offers advice on emerging sleep research, the complicated world of sleep disorders as well as trends in how the American public's lack of sleep can affect mood, weight, health, work and family.
Z-z-z-z-z-z-z . . .
Ooops. Cue Heather Frank, USAT's vice president of consumer media. "The addition of these fresh female voices,'' she says, "continues the USA Today commitment to publishing news and advice on topics that are vital to American families' health and well-being."
The other four blogs are focused on:
- Family and friends. "Sound advice on topics as far ranging as disciplining teens and preserving marriages to surviving in-laws."
- Beauty. "A frank discussion of women and beauty and what beauty means."
- Careers. "Real-life solutions on how to achieve work/life balance."
- Yet more beauty. "Intelligent advice on skincare, weight, hair care, new products, tempting trends and celeb looks."
The most recent post from Ellen Seidman's OwnIt beauty blog: Last week was full of compliments on how good she looked. Different makeup? Nope: "For the first time in months," she says, "I'd gotten eight hours of sleep several nights in a row. It was absolutely, positively depressing: this realization that I actually looked better with sleep."
[Image: Newseum. USAT's front page cover story today asks, "Is dating dead?"]
Phoenix | Get paid to practice your putting
But life at Gannett Local isn't all exciting cold calls! In one scene (above), someone's practicing putts in a hallway. What?! No foosball?
The l-o-o-o-o-n-g 3:29 video is accompanied by a head-thumping (and uncredited!) recording of OneRepublic's All the Right Moves.
"At Gannett Local," the recruitment pitch says, "we are committed to providing our employees with a comprehensive benefits plan that promotes health and wellness, builds current and future financial security, enhances work-life balance and allows for personal choice and flexibility for employees and their dependents. We offer a competitive base and commission model, a great work environment, and the opportunity to work with fun, smart people and learn a lot about one of the fastest growing industries."
And from Gannett Local's YouTube channel, meet the staff! As a promotional piece, however, the following video could use a telephone number for more information. (Also noteworthy: the channel has been viewed only 397 times in nearly a year.)
Fort Collins | Report of an 'all hands' meeting
Anonymous@11:57 a.m. ET just wrote: "All hands meeting in Fort Collins going on. 9:15AM meeting announced at 9:00AM."
As I post this, it's now 10:01 a.m. local time at the home of the Fort Collins Coloradoan.
Robert Moore is still the paper's interim publisher, according to the staff directory -- a position he took after the never-explained departure of Kim Wilson in December.
[Updated at 12:53 p.m. ET.]
In a statement, Corporate just disclosed the following:
Gannett announced today that Judi Terzotis has been named president and publisher of the Fort Collins Coloradoan.
She formerly was associate publisher of Freedom Communications' The Gazette in Colorado Springs, Colo. She held that position since 2009.
Prior to joining The Gazette, Terzotis was advertising director at Gannett's Clarion-Ledger in Jackson, Miss., from 2007-2009; president and publisher of The Daily News Journal in Murfreesboro, Tenn., from 2004-2007; vice president of specialty publications at The Tennessean in Nashville, from 2006-2007; and general manager of Middle Tennessee Community Newspapers in Nashville from 1998-2004.
As I post this, it's now 10:01 a.m. local time at the home of the Fort Collins Coloradoan.
Robert Moore is still the paper's interim publisher, according to the staff directory -- a position he took after the never-explained departure of Kim Wilson in December.
[Updated at 12:53 p.m. ET.]
In a statement, Corporate just disclosed the following:
Gannett announced today that Judi Terzotis has been named president and publisher of the Fort Collins Coloradoan.
She formerly was associate publisher of Freedom Communications' The Gazette in Colorado Springs, Colo. She held that position since 2009.
Prior to joining The Gazette, Terzotis was advertising director at Gannett's Clarion-Ledger in Jackson, Miss., from 2007-2009; president and publisher of The Daily News Journal in Murfreesboro, Tenn., from 2004-2007; vice president of specialty publications at The Tennessean in Nashville, from 2006-2007; and general manager of Middle Tennessee Community Newspapers in Nashville from 1998-2004.
March 28-April 3 | Your News & Comments: Part 4
Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)
Sponsors | Big thanks to an 11th-hour $300 donor!
A very, very generous reader who asked to remain very, very anonymous has now donated $300, helping push me past my $4,000 goal. This individual has been a major supporter during the past year, often providing documents and other information that have been invaluable additions to Gannett Blog.
Along with recent $5 contributions from Arizona, Michigan and Kentucky; $10 from Iowa, and $50 from Virginia, I've reached 105% of my goal. With today's end of the quarter, this is only the second time that I've hit this goal. Thank you, all. The breakdown:
- Reader donations: $1,928
- Advertising: $2,261
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. To pay by credit card or PayPal, please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.
Wednesday, March 30, 2011
March 28-April 3 | Your News & Comments: Part 3
Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)
Urgent: Nashville's Hudler confirms Q2 furloughs; reports say unpaid weeks also planned in west, midwest; but extent of time off remains unclear
[Updated at 3:04 p.m. ET.] Nashville Tennessean Publisher Carol Hudler, who also is president of the regional South Group of newspapers, told employees the following in an early-afternoon e-mail, according to two of my readers:
"Many of you have been wondering if we will be asked to take another furlough in the 2nd Quarter. Most of our employees will not. Our top executives and a few others in higher paid positions will be asked to take a furlough. Those staffers will be notified by their department heads by the end of the day today."
The furloughs come only a week after Gannett disclosed top executives got huge pay raises last year. Chairman and CEO Craig Dubow's doubled to $9.4 million, in part for cutting costs through furloughs and other austerity measures.
From my earlier post: Amid a further slide in revenue, Corporate is mandating another round of unpaid furloughs for some newspaper employees in western and midwestern markets during the second quarter, which begins Friday. That is according to readers I know, who e-mailed me over the past 12 hours.
There are signs that South Group papers might also furlough employees; but I have few details. I've heard nothing about the East Group of dailies, nor about GCI's other big division, broadcasting; its financial position has been stronger than the newspaper groups', however. (Breakdown of newspapers by group.)
I assume any furloughs will be for one week's duration; that's been the case in all but one of the four furloughs GCI has required since the first, during the first quarter of 2009.
Yesterday, at least two West Group dailies were notifying individual employees getting furloughed -- suggesting this round will be more "targeted,'' rather than across all the U.S. papers.
Only well-paid staff?
I got conflicting reports about higher-wage employees being the only ones targeted. One West Group reader said they understood only those making more than $80,000 would be furloughed.
But another reader from that group told a different story: "Judging from personal experience, the furloughs are not limited to people making $80,000 or more, although there is a certain income level below which people will not be affected."
There's a precedent for furloughs based on income. During the second-quarter furlough of 2009, employees making $90,000 and above were told to take two unpaid weeks off; everyone else got one.
That spurred additional unhappiness when some people discovered they were making less than co-workers in the same or substantially similar jobs.
Bad timing
This fifth furlough round comes as GCI's revenue continues falling, even from the already low levels set during the Great Recession. Last week, COO Gracia Martore warned investors that publishing revenue would be down 6% to 7% in the current quarter, worse than the 4.7% decline in the fourth quarter.
The timing of any furloughs will be awkward. Last Thursday, Corporate disclosed that the company's highest paid employees got big raises last year. Indeed, Martore and CEO Craig Dubow saw their pay double. She got $8.2 million; he got $9.4 million.
 |
| Hudler |
The furloughs come only a week after Gannett disclosed top executives got huge pay raises last year. Chairman and CEO Craig Dubow's doubled to $9.4 million, in part for cutting costs through furloughs and other austerity measures.
From my earlier post: Amid a further slide in revenue, Corporate is mandating another round of unpaid furloughs for some newspaper employees in western and midwestern markets during the second quarter, which begins Friday. That is according to readers I know, who e-mailed me over the past 12 hours.
There are signs that South Group papers might also furlough employees; but I have few details. I've heard nothing about the East Group of dailies, nor about GCI's other big division, broadcasting; its financial position has been stronger than the newspaper groups', however. (Breakdown of newspapers by group.)
I assume any furloughs will be for one week's duration; that's been the case in all but one of the four furloughs GCI has required since the first, during the first quarter of 2009.
Yesterday, at least two West Group dailies were notifying individual employees getting furloughed -- suggesting this round will be more "targeted,'' rather than across all the U.S. papers.
Only well-paid staff?
I got conflicting reports about higher-wage employees being the only ones targeted. One West Group reader said they understood only those making more than $80,000 would be furloughed.
But another reader from that group told a different story: "Judging from personal experience, the furloughs are not limited to people making $80,000 or more, although there is a certain income level below which people will not be affected."
There's a precedent for furloughs based on income. During the second-quarter furlough of 2009, employees making $90,000 and above were told to take two unpaid weeks off; everyone else got one.
That spurred additional unhappiness when some people discovered they were making less than co-workers in the same or substantially similar jobs.
Bad timing
This fifth furlough round comes as GCI's revenue continues falling, even from the already low levels set during the Great Recession. Last week, COO Gracia Martore warned investors that publishing revenue would be down 6% to 7% in the current quarter, worse than the 4.7% decline in the fourth quarter.
The timing of any furloughs will be awkward. Last Thursday, Corporate disclosed that the company's highest paid employees got big raises last year. Indeed, Martore and CEO Craig Dubow saw their pay double. She got $8.2 million; he got $9.4 million.
GCI No. 12 in paidContent's 50 top digital media
Editors at the digital economy tracker wrote in their story today:
Even during the worst parts of the recession, Gannett’s individual interactive units performed consistently well. And the company has managed to diversify its digital operations beyond selling ads on the websites of its newspapers and TV stations, with operations like rich media provider PointRoll and social media marketing unit Ripple6. Digital, however, has not been totally immune to the deep cost cuts at Gannett over the last few years. In May, Gannett decided to streamline its digital holdings by folding Ripple6 into PointRoll.
Note: Google is No. 1. GCI ranks ahead of No. 13, Zynga, the folks behind FarmVille.
Huh? For some reason, the list only includes 43 companies.
Other newspaper companies: Wall Street Journal publisher News Corp. is No. 8. Cox Enterprises, 14. New York Times Co., 27. Hearst, 28. Advance Publications, 30. Tribune Co., 38. And McClatchy, 41.
Note: Google is No. 1. GCI ranks ahead of No. 13, Zynga, the folks behind FarmVille.
Huh? For some reason, the list only includes 43 companies.
Other newspaper companies: Wall Street Journal publisher News Corp. is No. 8. Cox Enterprises, 14. New York Times Co., 27. Hearst, 28. Advance Publications, 30. Tribune Co., 38. And McClatchy, 41.
Cherry Hill | And now, from 'Poopgate' Central . . .
"The decision wasn't difficult."
-- Courier-Post opinion page editor Mike Daniels, gamely defending the Cherry Hill, N.J., paper's decision to add to its editorial board a powerful Democratic party fundraiser and leader. "Astonishing," blogger Tom Crone said.
Earlier: Corporate probing Cherry Hill's 'Poopgate.' Plus: Editor at sister paper defends sports stories written by team employee
Stock | Citigroup analyst downgrades GCI shares
Gannett's stock recently traded for $15.57, up a penny, after a Citi Investment Research analyst today downgraded shares, saying GCI's first-quarter earnings forecast suggests a stable revenue stream is further away than previously expected. Shares traded as low as $15.24 earlier today.
Last Thursday, COO Gracia Martore told investors that GCI's publishing revenue would fall 6% to 7% in the current quarter vs. a year ago. That's a steeper decline from the 4.7% in the fourth quarter. The company expects earnings of 41 cents per share. "Analysts, on average, are forecasting slightly higher earnings of 43 cents per share, according to FactSet,'' the Associated Press said, in its report on the Citi downgrade.
Citi's action follows diverging forecasts from two other firms.
Friday, JP Morgan Chase lowered its price target on GCI's stock to $17 from $18 a share. That same day, however, UBS analysts boosted their forecast of GCI's earnings per share.
Last Thursday, COO Gracia Martore told investors that GCI's publishing revenue would fall 6% to 7% in the current quarter vs. a year ago. That's a steeper decline from the 4.7% in the fourth quarter. The company expects earnings of 41 cents per share. "Analysts, on average, are forecasting slightly higher earnings of 43 cents per share, according to FactSet,'' the Associated Press said, in its report on the Citi downgrade.
Citi's action follows diverging forecasts from two other firms.
Friday, JP Morgan Chase lowered its price target on GCI's stock to $17 from $18 a share. That same day, however, UBS analysts boosted their forecast of GCI's earnings per share.
Gannett's regional newspaper groups at a glance
Following are Gannett's four regional newspaper groups; their officers, and assigned newspapers by location.
West: John Zidich, President – Phoenix
Mark Winkler, VP – Palm Springs, Visalia, Tulare, Salinas, Reno
Steve Silberman, VP – Salem, Great Falls, St. George, Fort Collins, Guam
Midwest: Laura Hollingsworth, President – Des Moines, Iowa City, St. Cloud & Sioux Falls
Linda Ramey-Greiwe, VP – Springfield, Mountain Home and all Louisiana properties
Genia Lovett, VP – All Wisconsin properties
South: Carol Hudler, President – Nashville and all Tennessee properties
Leslie Hurst, VP – Jackson (MS), Montgomery, Pensacola, Hattiesburg
Mark Mikolajczyk, VP – Brevard, Fort Myers, Tallahassee, Greenville, Asheville
East: Michael Kane, President – Indianapolis, Rochester, Binghamton, Westchester, Poughkeepsie
Howard Griffin, VP – Wilmington, Cherry Hill, Staunton, Vineland, Burlington, Salisbury
Tom Donovan, VP – Asbury and all Northern New Jersey properties
Margaret Buchanan, VP – Cincinnati, Louisville, Richmond, Muncie, Lafayette, Lansing, Battle Creek, Port Huron, MNCO
West: John Zidich, President – Phoenix
Mark Winkler, VP – Palm Springs, Visalia, Tulare, Salinas, Reno
Steve Silberman, VP – Salem, Great Falls, St. George, Fort Collins, Guam
Midwest: Laura Hollingsworth, President – Des Moines, Iowa City, St. Cloud & Sioux Falls
Linda Ramey-Greiwe, VP – Springfield, Mountain Home and all Louisiana properties
Genia Lovett, VP – All Wisconsin properties
South: Carol Hudler, President – Nashville and all Tennessee properties
Leslie Hurst, VP – Jackson (MS), Montgomery, Pensacola, Hattiesburg
Mark Mikolajczyk, VP – Brevard, Fort Myers, Tallahassee, Greenville, Asheville
East: Michael Kane, President – Indianapolis, Rochester, Binghamton, Westchester, Poughkeepsie
Howard Griffin, VP – Wilmington, Cherry Hill, Staunton, Vineland, Burlington, Salisbury
Tom Donovan, VP – Asbury and all Northern New Jersey properties
Margaret Buchanan, VP – Cincinnati, Louisville, Richmond, Muncie, Lafayette, Lansing, Battle Creek, Port Huron, MNCO
Sponsors | By the numbers: CEO pay rates
Yet another reason why I'm such a bargain. How much two chief executives of multinational media companies earn:
* Craig Dubow's based on 51 weeks at 40 hours each in 2010.
** Yours truly's on $16,000 for 52 weeks at 40 hours each; I don't furlough myself.
$4,610.31
per hour *
$7.69
per hour * *
* Craig Dubow's based on 51 weeks at 40 hours each in 2010.
** Yours truly's on $16,000 for 52 weeks at 40 hours each; I don't furlough myself.
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. To pay by credit card or PayPal, please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.
Tuesday, March 29, 2011
March 28-April 3 | Your News & Comments: Part 2
Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)
Phoenix | Awkward times for one of GCI's top pubs
 |
| Zidich |
"The Republic has been a longtime sponsor of the bowl, and Republic CEO and Publisher John Zidich is on the bowl's executive committee."
-- paragraph No. 14 in an Arizona Republic story today, revealing details of an investigation into spending irregularities at the Fiesta Bowl, one of college football's most prestigious championship events. Investigators found "a culture of excessive spending on bowl employees, politicians and business associates despite rules barring it from using its money to benefit individuals; a system of campaign contributions that could run afoul of state and federal campaign laws; and accounts of efforts by bowl staffers to mislead government investigators."
[Updated at 1:37 p.m. ET March 31. Arizona State University journalism professor Tim McGuire has now called on Zidich to either quit the Fiesta Bow -- or the Republic.]
Sponsors | Gosh: It's looking like a nail-biter!
- Reader donations: $1,509
- Advertising: $2,193
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. To pay by credit card or PayPal, please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.USAT | Lieberman's plateful at Finke's Deadline
David Lieberman will report to the infamously driven Nikki Finke at the entertainment industry website she founded, now called Deadline.com.
He starts April 11 after 17 years at USA Today, most recently as the paper's senior media reporter, Deadline announced today.
Finke, who was profiled in this jaw-dropping October 2009 New Yorker article, says Lieberman will report on all of the following:
"Big Media business and finance (mergers & acquisitions, earnings, Wall Street matters, governance issues), digital convergence (New Media giants Google, Yahoo, AOL; social networking like Facebook; consumer electronics like Apple TV, TiVo, Roku, and PlayStation; mobility platforms like iPad, smartphones, and automobile-based infotainment), distribution (pay TV for cable, satellite, telco TV; broadcasting via TV and radio stations, Sirius XM; broadband including wired and wireless providers, content services like Netflix, Hulu, iTunes, CinemaNow; and retail like Amazon, Best Buy, Wal-Mart, Blockbuster, Redbox), movie exhibition (theater chains like AMC, Regal, Cinemark, and IMAX), regulation (Congress, courts, FCC and other agencies), advertising, marketing, and licensing."
Yikes.
 |
| Lieberman |
Finke, who was profiled in this jaw-dropping October 2009 New Yorker article, says Lieberman will report on all of the following:
"Big Media business and finance (mergers & acquisitions, earnings, Wall Street matters, governance issues), digital convergence (New Media giants Google, Yahoo, AOL; social networking like Facebook; consumer electronics like Apple TV, TiVo, Roku, and PlayStation; mobility platforms like iPad, smartphones, and automobile-based infotainment), distribution (pay TV for cable, satellite, telco TV; broadcasting via TV and radio stations, Sirius XM; broadband including wired and wireless providers, content services like Netflix, Hulu, iTunes, CinemaNow; and retail like Amazon, Best Buy, Wal-Mart, Blockbuster, Redbox), movie exhibition (theater chains like AMC, Regal, Cinemark, and IMAX), regulation (Congress, courts, FCC and other agencies), advertising, marketing, and licensing."
Yikes.
Saridakis to run eBay's new $2.4B acquisition
 |
| Saridakis |
Saridakis became chief executive of GSI marketing services division in May, just days after he quit as Gannett chief digital officer. He later cited disagreements over the slow pace of decision-making in explaining his exit.
EBay announced yesterday that it was acquiring GSI for $2.4 billion. Based in the Philadelphia suburb of King of Prussia, Pa., GSI assists more than 180 top brands and retailers with their websites, including Aéropostale, Timberland, Mattel, Zales and Major League Baseball, according to The Wall Street Journal.
With the deal, eBay gets an order-management, fulfillment and shipping business that competes directly with Amazon's own fulfillment offering for merchants. Fulfillment centers pack up orders for shipment. GSI will operate as a separate company for 2011, the WSJ says.
Monday, March 28, 2011
March 28-April 3 | Your News & Comments: Part 1
Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)
GCI announces six recipients of 'Unsung Heros'
The annual awards, now in their 24th year, are for employees throughout the company "who give outstanding service every day,'' Corporate said in a statement today.
The winners were picked from more than 100 nominations this year; Gannett has 32,600 employees worldwide. Each winner will receive $1,000 and be honored at a reception on April 6 at headquarters in McLean, Va.
The winners were picked from more than 100 nominations this year; Gannett has 32,600 employees worldwide. Each winner will receive $1,000 and be honored at a reception on April 6 at headquarters in McLean, Va.
USAT | How real were school gains under Rhee?
As the District of Columbia's controversial public schools chief, Michelle Rhee rode soaring student test scores to a national reputation as a model education reformer.
But a new USA Today investigation published today raises disturbing questions about whether cheating drove some of those gains.
USAT's story is based on an extensive examination of data and documents secured under D.C.'s Freedom of Information Act. It's part of a broader series on school test scores.
Rhee resigned in October after the mayor who appointed her in 2007, Adrian Fenty, lost his re-election bid. She has since organized a non-profit, StudentsFirst, which is trying to raise $1 billion to promote education reform.
[Updated at 2:50 p.m. ET March 30: Rhee now tells USAT that its findings "absolutely lacked credibillity."]
 |
| Rhee |
USAT's story is based on an extensive examination of data and documents secured under D.C.'s Freedom of Information Act. It's part of a broader series on school test scores.
Rhee resigned in October after the mayor who appointed her in 2007, Adrian Fenty, lost his re-election bid. She has since organized a non-profit, StudentsFirst, which is trying to raise $1 billion to promote education reform.
[Updated at 2:50 p.m. ET March 30: Rhee now tells USAT that its findings "absolutely lacked credibillity."]
Memo: The really mean kids are on Team No. 5
Craig A. Dubow
Chairman
Chief Executive Officer
A few weeks ago, I shared with you the next step in our ongoing strategic efforts to transform Gannett. As noted then, it is critical that we accelerate our internal rate of change to address the rapid rate of change taking place within our industry for consumers, advertisers and competitors. To accomplish this, we launched an integrated, cross-divisional effort that includes a number of strategic initiatives and teams designed to create and deliver transformational ideas.
Since that time, we have accomplished several things and, as promised, I want to keep you posted on the progress we are making on this important company-wide initiative.
First, we have organized our strategic work around five areas that collectively represent key opportunities for Gannett. Second, we have created teams comprised of strong, diverse leadership from throughout our company. Here are the questions that each team will tackle and the members of those teams:
- Content Monetization: How should Gannett best generate value for the content we create? Led by Craig McKinnis, director of Content Acquisition and Distribution -- Gannett Digital Ventures. Team members include Matt Jones, Kevin Poortinga, Laura Ramos, Maribel Perez Wadsworth and Jeffrey Wilks.
- Content Vertical Expansion: In what content areas should we either significantly expand our coverage or offer new content for our consumers? Led by Heather Frank, vice president of Consumer Media -- USA Today. Team members include Jennifer Carroll, Randy Lovely, Akin Harrison, Carla Wojnaroski and Mark Wasiljew.
- Business Adjacencies: Which areas of the media, news and information industries should we expand into or enter? Led by Steve Hauber, publisher and chief executive officer -- Gannett Healthcare Group. Team members include: Dan Ehrman, Laura Hollingsworth, Scott Lyon, Grey Montgomery and Josh Resnik.
- Local Products and Advertising Services: How can we best serve the needs of small and medium-sized businesses in reaching and retaining consumers? Led by Steve Zuckerman, chief executive officer -- Clipper Magazine. Team members include Anthony Diaz, Dan Donaghy, Tricia Kelly, Brad Robertson and Reggie Murphy.
- Transformational Cost Restructuring: How can we best ensure we have the right resources in the right areas to meet changes in the industry and our portfolio? Led by Paul Saleh, senior vice president and chief financial officer -- Gannett. Team members include Mark Cornetta, Stacy Cunningham, Susie Ellwood, Don Lemire, Susan Motiff and Evan Ray.
As the teams began to outline their work, a question emerged which you may also share: what exactly is a “transformational opportunity” and how will we know it when we see it? A transformational opportunity fulfills the following three criteria:
- Achievement would add substantial profitable growth by the year 2014.
- We can clearly state Gannett's “right to win,” that is, the unique advantage that we bring to the table vs. other players.
- We can outline the path and actions necessary for success.
In the course of the work our teams have underway, we also expect they will identify other near-term opportunities. While those opportunities may be smaller, they will also have a more certain impact on our company over the next one to two years. In addition, our teams will identify long-range opportunities which require positioning today in order to bear fruit five or more years from now. These will be noted and explored. However, the core purpose and work of the transformational teams is to champion those ideas that will have a significant impact on our business over the next three to five years.
While our business has both historical strengths and current health, we must achieve transformational change in order to fully thrive in the future. We have the right people in place with the right level of commitment, creativity and bold, strategic thinking to design and drive this important change.
We will continue to share updates with you about our progress. Thank you for your continued support of this work, these teams and our company.
[Artwork: Despair.com]
Gannett sites win National Headliner Awards
Newspapers and TV stations from coast to coast were among scores of media companies that won today in the annual competition sponsored by the Press Club of Atlantic City, N.J. The contest drew entries from papers as large as The Wall Street Journal and The Washington Post. Winners included:
Newspapers
News series in daily newspapers with daily circulation up to 75,000
Continuing coverage of a single news event, all markets
Newspapers
News series in daily newspapers with daily circulation up to 75,000
- First place: “Money Pit/Money Maker,” Mary Beth Pfeiffer, Poughkeepsie Journal, Poughkeepsie, N.Y.
- Second place: “Growing Up Indian,” Steve Young, Argus Leader, Sioux Falls, S.D.
- First place: “Breaking Point: Personal Tales of New Jersey’s Tax Crush,” projects staff, Asbury Park Press
- Second place: “Probate Court: A Troubled System,” Robert Anglen, Pat Kossan and Laurie Roberts, The Arizona Republic
- Third place: Mitch Albom, Detroit Free Press
- Second place: “Tennessee State University: A University Challenged,” Jaime Sarrio and Brad Schrade, The Tennessean, Nashville
Continuing coverage of a single news event, all markets
- Third place: “Toyota Defense,” Joe Fryer, Monica Hanson and John Croman, KARE-TV
- Third place: “Loren & LeRoy,” Boyd Huppert and Bill Middeke, KARE-TV
Sunday, March 27, 2011
In Dubow's successor, a question of the ages
However, the board of directors has not signaled when Dubow might retire. He is only 56, and his mandatory retirement age isn't until 65.
Martore turns 60 in September. Following are the years when CEOs took office, with their ages at the time:
- 2005. Dubow: 50
- 2000. Doug McCorkindale: 60
- 1986. John Curley: 48
- 1973. Al Neuharth: 49
Stock | Analysts' forecasts diverge on GCI outlook
Wall Street media analysts at JP Morgan Chase lowered their price target on Gannett's stock Friday to $17 from $18 a share.
That same day, UBS analysts boosted their forecast of GCI's earnings per share, according to a story in American Banking & Market News. The story does not give the revised EPS figure, however.
UBS now has a “neutral” rating and a $16 price target on the stock, the story says. Two weeks before, analysts at Zacks Investment Research reiterated a “neutral” rating on GCI; Zacks also said it expected shares to reach $16.
GCI closed Friday at $15.14, up 1.4%.
Thursday, COO Gracia Martore told a Wall Street conference that publishing revenue in the current quarter would be down 6%-7% vs. a smaller decline in the fourth quarter. She also said she expected earnings per share of 41 cents for the quarter, the consensus of analysts' forecasts in a survey by First Call.
Lower expectations
Her publishing revenue forecast represents a worrisome widening in the rate of decline, and comes amid speculation about another round of unpaid furloughs for the coming quarter. Here would be the current quarter vs. the previous three actual quarters:
The stock's 52-week low is $11.65 and its high is $19.69. Shares are now down 8.2% from a year ago vs. a 12.7% gain in the S&P 500 index, a broader measure of overall market activity. In contrast, shares of the New York Times Co. are down 16.5% from a year ago; McClatchy is down 22.9%.
That same day, UBS analysts boosted their forecast of GCI's earnings per share, according to a story in American Banking & Market News. The story does not give the revised EPS figure, however.
UBS now has a “neutral” rating and a $16 price target on the stock, the story says. Two weeks before, analysts at Zacks Investment Research reiterated a “neutral” rating on GCI; Zacks also said it expected shares to reach $16.
GCI closed Friday at $15.14, up 1.4%.
Thursday, COO Gracia Martore told a Wall Street conference that publishing revenue in the current quarter would be down 6%-7% vs. a smaller decline in the fourth quarter. She also said she expected earnings per share of 41 cents for the quarter, the consensus of analysts' forecasts in a survey by First Call.
Lower expectations
Her publishing revenue forecast represents a worrisome widening in the rate of decline, and comes amid speculation about another round of unpaid furloughs for the coming quarter. Here would be the current quarter vs. the previous three actual quarters:
- Q1: down 6%-7%
- Q4: down 4.7%
- Q3: down 4.8%
- Q2: down 6.0%
4.4% (pro forma, constant currency basis)
The stock's 52-week low is $11.65 and its high is $19.69. Shares are now down 8.2% from a year ago vs. a 12.7% gain in the S&P 500 index, a broader measure of overall market activity. In contrast, shares of the New York Times Co. are down 16.5% from a year ago; McClatchy is down 22.9%.
March 21-27 | Your News & Comments: Part 6
Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)
Saturday, March 26, 2011
Mail | 'None of these guys had to watch employees box up years of their lives as they were sobbing'
In a new comment about the special six-figure benefits packages given to CEO Craig Dubow, COO Gracia Martore and U.S. newspapers President Bob Dickey, Anonymous@9:12 p.m. writes:
Craig, Gracia, Bob and the others are being rewarded for their ability to achieve results through others. They didn't have to do the cost-cutting; they merely directed Bob to tell the group presidents to tell the local site managers to do the dirty work, thereby freeing the executive leadership of getting their hands dirty.
In essence, they are being rewarded because they were able to retain and motivate a lower-management infrastructure who could execute these initiatives. If you think about it, it's brilliant: They got local publishers to take salary cuts and furloughs, then got them to make round after round of expense cuts, yet somehow also made them feel lucky to still have a job. Sure, the local publishers got a "bonus," too, but nothing nearing the generational wealth that the company has bestowed on these individuals in a single year. Amazing.
As has been reported on this site earlier, there are several properties in Gannett that will labor all year to return a NIBT at or near what we paid out to one of these individuals (Craig counts as the NIBT of several sites combined).
Firing to save $25K
I would imagine that Craig, Gracia and Bob feel entitled to such largess. After all, they are "taking the heat from the Street." And I am sure they feel these amazing pay-and-perks packages are just compensation for the "hard decisions" they had to make about our future. Yet, none of these guys had to look loyal employees in the eye and tell them that their 20-plus career was over so we could save $25,000 or $35,000 a year for the company. None of these guys had to watch employees box up years of their lives as they were sobbing. None of these guys had people point fingers in their faces. None of these guys had to go home at night, exhausted, emotionally spent and unable to tell the kids what you did at work today.
I know we're no Apple, but how I long for leadership like Steve Jobs. When he came back to that company, he turned down a salary and was paid only in stock. The better he did his job, the more money his stock was worth. No one there faults Jobs for being a rich man, because his vision, leadership and cultivation of a spirit of innovation has made the company prosper and bolstered the spirits and wallets of his employees.
Didn't get hands dirty
Most of us in GCI could live like kings for the rest of our lives off one year of Craig's salary. He and his management team are multi-millionaires and, most likely, they could stop working right now and never have another need or want (especially given their parachutes). How refreshing and inspirational it would be if Craig, Gracia and Bob opted to foresake the bonus, forsake the salaries, foresake the luxury perks and be paid in stock and stock options only.
But that's not going to happen. They obviously feel their large compensation packages are earned and justified. And, like I said, they did get it done without getting their hands dirty. At the end of their careers, after years of multi-million dollar salaries and an exit package that would be akin to hitting the lottery, they will have riches enough to pass to their children and grandchildren.
Earlier: Under Dubow, GCI has eliminated 20,000 jobs since 2005. Worldwide employment fell 7% last year, to 32,600; year by year totals going back to 1994.
Please post your replies in the comments section, below -- or in the post where it originally appeared. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.
Craig, Gracia, Bob and the others are being rewarded for their ability to achieve results through others. They didn't have to do the cost-cutting; they merely directed Bob to tell the group presidents to tell the local site managers to do the dirty work, thereby freeing the executive leadership of getting their hands dirty.
As has been reported on this site earlier, there are several properties in Gannett that will labor all year to return a NIBT at or near what we paid out to one of these individuals (Craig counts as the NIBT of several sites combined).
Firing to save $25K
I would imagine that Craig, Gracia and Bob feel entitled to such largess. After all, they are "taking the heat from the Street." And I am sure they feel these amazing pay-and-perks packages are just compensation for the "hard decisions" they had to make about our future. Yet, none of these guys had to look loyal employees in the eye and tell them that their 20-plus career was over so we could save $25,000 or $35,000 a year for the company. None of these guys had to watch employees box up years of their lives as they were sobbing. None of these guys had people point fingers in their faces. None of these guys had to go home at night, exhausted, emotionally spent and unable to tell the kids what you did at work today.
I know we're no Apple, but how I long for leadership like Steve Jobs. When he came back to that company, he turned down a salary and was paid only in stock. The better he did his job, the more money his stock was worth. No one there faults Jobs for being a rich man, because his vision, leadership and cultivation of a spirit of innovation has made the company prosper and bolstered the spirits and wallets of his employees.
Didn't get hands dirty
Most of us in GCI could live like kings for the rest of our lives off one year of Craig's salary. He and his management team are multi-millionaires and, most likely, they could stop working right now and never have another need or want (especially given their parachutes). How refreshing and inspirational it would be if Craig, Gracia and Bob opted to foresake the bonus, forsake the salaries, foresake the luxury perks and be paid in stock and stock options only.
But that's not going to happen. They obviously feel their large compensation packages are earned and justified. And, like I said, they did get it done without getting their hands dirty. At the end of their careers, after years of multi-million dollar salaries and an exit package that would be akin to hitting the lottery, they will have riches enough to pass to their children and grandchildren.
Earlier: Under Dubow, GCI has eliminated 20,000 jobs since 2005. Worldwide employment fell 7% last year, to 32,600; year by year totals going back to 1994.
Please post your replies in the comments section, below -- or in the post where it originally appeared. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.
Document: GCI paid $52K to insure Dubow's life; loads of pricey benefits for other top brass, too
Last year, Gannett gave CEO Craig Dubow a platinum package of extra benefits -- including use of the company jet, plus personal legal and financial services -- worth nearly $160,000. They were part of the $9.4 million he got paid in overall salary, bonus and stock awards, according to a new report to shareholders this week.
At least five other senior executives got very similar bennies, too. They are COO Gracia Martore; Chief Financial Officer Paul Saleh; U.S. newspapers President Bob Dickey; USA Today Publisher Dave Hunke, and broadcasting President Dave Lougee.
These benefits are included in a pay category known as "all other compensation,'' a round-up of goodies often given to executives across Corporate America to make their jobs more attractive in a competitive labor market. Dubow's "all other" was the richest of the six executives. Martore's package was worth $110,652. Saleh, hired as top finance executive in November, got the smallest: just $4,608 worth.
Dubow's $52,090 life insurance premium is for a policy worth about $4.1 million, according to a formula in the proxy report. For Martore, GCI paid $29,450 for a policy worth about $3.3 million, according to the formula. Dubow and Martore own these policies, so their heirs would get any payoff.
The report doesn't list insurance policies for the other four executives.
Corporate disclosed this latest round of benefits on Thursday in the annual shareholders proxy report, a 61-page document filed with the U.S. Securities and Exchange Commission.
$25K of legal, tax advice?
In addition to occasional personal use of Corporate's jet, the benefits included company-paid automobiles; supplemental medical care; $15,000 in Gannett Foundation money to the execs' favorite charities; and (for most of them) $7,350 in company matches to their 401(k) retirement accounts.
One of the most interesting benefits, apparently for all the executives, is "legal and financial services," possibly worth up to $25,000 a year. The report doesn't spell out those services, but I imagine they include advice on how to reduce their annual income taxes; preparation of federal and state income tax returns; estate planning advice, and the like.
A few of the benefits were one-offs. Hunke, who was promoted to USAT publisher in April 2009, got $19,473 to pay for the closing costs on his new home near Corporate's headquarters outside Washington. Plus, he got another $13,084 "gross-up" payment to cover taxes owed on that $19,473, the report shows.
The money was paid under Corporate's relocation policy for management employees. Hunke's promotion required him to move from Detroit, where he had run the GCI-controlled Detroit newspaper publishing partnership since 2005.
In 2009, GCI reimbursed him $250,000 for a loss he incurred when he sold his Detroit-area home. The area was devastated by the near-collapse of the automobile industry.
Hunke's total pay last year was $2.5 million. That included a $375,000 cash bonus, plus the estimated future value of stock awards, including options.
In the fine print
The report breaks out the individual cost to shareholders of some -- but not all -- the benefits, in a footnote to the Summary Compensation Table. That closely-watched table lists salary, bonuses and stock awards for each of the six highest-paid executives as far back as 2008. And it includes the "all other" compensation details for those years.
The value of the legal and financial services isn't specifically detailed for any of the executives. I found the $25,000 amount in Footnote 2 to another table on Page 44.
Of Dubow's $159,465 in all other compensation, I was able to account for about $99,000 of the total -- leaving $60,000 unspecified.
This spreadsheet shows all other compensation for Dubow, Martore, Saleh, Dickey, Hunke and Lougee. Where available, I've included the value of individual items.
Related: the board of directors' Executive Compensation Committee report starts on Page 32 of the proxy report.
 |
| Dubow |
These benefits are included in a pay category known as "all other compensation,'' a round-up of goodies often given to executives across Corporate America to make their jobs more attractive in a competitive labor market. Dubow's "all other" was the richest of the six executives. Martore's package was worth $110,652. Saleh, hired as top finance executive in November, got the smallest: just $4,608 worth.
Dubow's $52,090 life insurance premium is for a policy worth about $4.1 million, according to a formula in the proxy report. For Martore, GCI paid $29,450 for a policy worth about $3.3 million, according to the formula. Dubow and Martore own these policies, so their heirs would get any payoff.
The report doesn't list insurance policies for the other four executives.
Corporate disclosed this latest round of benefits on Thursday in the annual shareholders proxy report, a 61-page document filed with the U.S. Securities and Exchange Commission.
$25K of legal, tax advice?
In addition to occasional personal use of Corporate's jet, the benefits included company-paid automobiles; supplemental medical care; $15,000 in Gannett Foundation money to the execs' favorite charities; and (for most of them) $7,350 in company matches to their 401(k) retirement accounts.
One of the most interesting benefits, apparently for all the executives, is "legal and financial services," possibly worth up to $25,000 a year. The report doesn't spell out those services, but I imagine they include advice on how to reduce their annual income taxes; preparation of federal and state income tax returns; estate planning advice, and the like.
 |
| Hunke |
The money was paid under Corporate's relocation policy for management employees. Hunke's promotion required him to move from Detroit, where he had run the GCI-controlled Detroit newspaper publishing partnership since 2005.
In 2009, GCI reimbursed him $250,000 for a loss he incurred when he sold his Detroit-area home. The area was devastated by the near-collapse of the automobile industry.
Hunke's total pay last year was $2.5 million. That included a $375,000 cash bonus, plus the estimated future value of stock awards, including options.
In the fine print
The report breaks out the individual cost to shareholders of some -- but not all -- the benefits, in a footnote to the Summary Compensation Table. That closely-watched table lists salary, bonuses and stock awards for each of the six highest-paid executives as far back as 2008. And it includes the "all other" compensation details for those years.
The value of the legal and financial services isn't specifically detailed for any of the executives. I found the $25,000 amount in Footnote 2 to another table on Page 44.
Of Dubow's $159,465 in all other compensation, I was able to account for about $99,000 of the total -- leaving $60,000 unspecified.
This spreadsheet shows all other compensation for Dubow, Martore, Saleh, Dickey, Hunke and Lougee. Where available, I've included the value of individual items.
Related: the board of directors' Executive Compensation Committee report starts on Page 32 of the proxy report.
Stevens Point | Firing after secret taping allegation
Wisconsin's Stevens Point Journal has dismissed a reporter accused of trying to secretly record a closed session of Portage County's Human Resources and Finance Committee meeting March 1.
General Manager and Executive Editor Michael Beck said the Journal conducted its own investigation, "which resulted in the termination of the reporter's employment with the company,'' the paper said in a story.
Beck told the paper that news staff is expected to review Gannett's Principles of Ethical Conduct annually.
General Manager and Executive Editor Michael Beck said the Journal conducted its own investigation, "which resulted in the termination of the reporter's employment with the company,'' the paper said in a story.
Beck told the paper that news staff is expected to review Gannett's Principles of Ethical Conduct annually.
Spring cleaning: Guess who's coming to dinner?
Sent: Friday, March 25, 2011 12:34 PM
To: ASB-APPNEWSROOM
Cc: [XXXXX]
Subject: We're expecting company
Team:
I'd like to have this sprucing up completed by the end of the day on Tuesday, March 29th.
Thanks for giving this your immediate attention.
Hollis
Earlier: Towns defends sports stories written by team employee
Sponsors | Hunke got $375K bonus; I just want $4K
But I've now got just five days left in the quarter. PayPal makes it easy to use your credit card. The breakdown so far:
- Reader donations: $1,252
- Advertising: $2,132
Friday, March 25, 2011
Say goodbye to your $1.2 million board member; documents reveal fees to GCI's too-quiet directors
 |
| Williams |
Also exiting May 3: Donna Shalala; she's been paid $868,283 since becoming a director in 2001. At 70, Shalala -- who is president of the University of Miami -- has reached mandatory retirement age. Williams, 66, a retired Washington attorney, said in a Feb. 23 statement that she's leaving to devote more time to other interests.
 |
| Shalala |
Who hired Dubow?
Williams, Shalala, and one other board member -- Duncan McFarland -- were among those directors who chose Dubow as chief executive in 2005. The other directors joined the board afterward. Williams held extra duties as the so-called presiding director, acting as a sort of deputy chairman alongside Dubow. McFarland, a director since 2004, assumed that position in February. He is a retired CEO of money manager Wellington Capital Management of Boston.
 |
| McFarland |
As across Corporate America, GCI's board of directors represents the interests of shareholders. Its members hire (and very, very occasionally fire) the CEO; elect their chairman; decide how much to pay top executives, and exercise general oversight of the company's strategic plan.
Also as across much of the business landscape, this board of directors has shown zero public evidence that it has been particularly challenging toward Dubow, Chief Operating Officer Gracia Martore, or of any other function of the company. To the best of my knowledge, the board has never said a word, publicly, about the massive layoffs that have roiled the company over the past three years.
Fees varied among members
I know that at least one director has in the past monitored this blog through an intermediary. I cannot speak for any of the other directors. I've been told, however, that they receive Google News alerts whenever their names appear on the Web. That is why you see me list their names at the bottom of this post.
 |
| Louis |
Although their six-figure paychecks seem large to a typical GCI employee, they are well within a range paid to other corporate directors.
Big fees have drawbacks
Directors at the biggest 200 publicly traded companies received a median $228,000 in 2009, USA Today's Gary Strauss reported earlier this month, citing figures from pay consultant Pearl Meyer & Partners. That means half earned more, and half earned less. By contrast, the median income of U.S. households fell 1% in 2009 to $49,777, according to Census Bureau figures, Strauss said. (Pearl Meyer advises GCI's board as well.)
Harvard University governance expert Lucian Bebchuk told Strauss that paying for savvy board members to spend more time providing management oversight is worthwhile for shareholders.
But excessive pay has drawbacks, according to Charles Elson, head of the University of Delaware's Weinberg Center for Corporate Governance. Above $200,000, "the goal isn't about monitoring the company, but keeping the income," he told Strauss. "You can become beholden to management. You'll think twice about making waves."
Hello, and make some waves!
As promised, here's my Google News alert shout-out to the other directors: Howard Elias; Arthur Harper; Marjorie Magner; Scott McCune, and Neal Shapiro.
What Dubow's gold watch is worth now: $23 million
Once a year, the company gives investors new cost estimates for these exit packages, reflecting considerations that include GCI's current share price, plus individual executives' stock holdings. The estimates appear in the annual shareholders' proxy report; the latest was filed yesterday with the U.S. Securities and Exchange Commission. Following are the highlights.
Retirement
Here's how much the top two would get if they quit right now:
- Chairman and CEO Craig Dubow, age 56: $22.5 million
- Chief Operating Officer Gracia Martore, age 59: $13.4 million
In the event of a "change in control" over the company, a handful of senior executives are entitled to even richer so-called golden parachute payments. A change in control includes the company's outright sale, or the accumulation of 20% or more of its total shares by a single investor. The value of these executives' payouts:
- Dubow: $45.1 million
- Martore: $34.1 million
- U.S. newspapers President Bob Dickey, age 53: $14.9 million
- USA Today Publisher Dave Hunke, age 58: $11.6 million
- Broadcasting President Dave Lougee, age 52: $5.6 million
- Chief Financial Officer Paul Saleh, age 54: $4.0 million
Sponsors | Dubow got $9.4M; all I want is $4,000
[Updated at 12:55 p.m. ET. So far today, I've received another $135 from readers in Virginia, Kentucky, Michigan, and Florida, where one supporter using PayPal's mobile application wrote: "Sending some love from sunny Florida. Love keeping up with what you are doing."] The new breakdown:
- Reader donations: $1,144
- Advertising: $2,095
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. To pay by credit card or PayPal, please use the "Donate" tool in the green rail, upper right. Or mail cash/checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.March 21-27 | Your News & Comments: Part 5
Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)
Thursday, March 24, 2011
March 21-27 | Your News & Comments: Part 4
Can't find the right spot for your comment? Post it here, in this open forum. Real Time Comments: parked here, 24/7. (Earlier editions.)
Bulletin: CEO Dubow earned $9.4 million last year; includes $1.8M bonus after more layoffs, wage cuts
 |
| Dubow |
Chief Operating Officer Gracia Martore got $8.2 million, more than double her $4.0 million in 2009, according to the new shareholders proxy report filed this afternoon with federal regulators. Her pay included a cash bonus of $1.25 million.
 |
| Martore |
The proxy report to the U.S. Securities and Exchange Commission disclosed pay for GCI's six highest earners. The other four were:
- Chief Financal Officer Paul Saleh: $2.9 million; includes a $225,000 bonus, after joining GCI last November.
- U.S. newspapers president Bob Dickey: $3.4 million, including $600,000 bonus. (His total 2009 pay: $1.9 million.)
- USA Today Publisher Dave Hunke: $2.5 million, including $375,000 bonus. (Total 2009: $1.9 million.)
- Broadcasting President Dave Lougee: $2.2 million, including $450,000 bonus. (Total 2009: $1.3 million.)
 |
| Dickey |
Dubow's and Martore's pay last year is the most they've earned in a single year, a review of previous proxy reports shows.
Their seven-figure paychecks came despite a poor performance for the company's stock. Shares ended 2010 at $15.09, virtually unchanged from the end of 2009, when it closed at $14.85. During the same period, the widely watched S&P 500 index, a broader measure of overall market activity, rose 13%. Indeed, GCI's stock in 2010 underperformed competitors for the third consecutive year, the company acknowledged last month.
 |
| Hunke |
During 2010, GCI once more slashed payrolls. It eliminated 2,400 jobs worldwide, many through layoffs. Plus, thousands of employees were required to take unpaid furloughs early in the year -- a requirement that equaled a nearly 2% wage cut.
Earlier: forecasting big 2010 bonuses and pay for Dubow & Co.
In 95 words, how to say more cost-cutting ahead
The following quote is attributed to CEO Craig Dubow in a statement Corporate issued today after Dubow and other senior executives met with Wall Street media stock analysts:
"We continue to take bold steps to move our company forward. To leverage our audience touch points across platforms and to grow the top line, we are fundamentally changing our approach to selling locally and nationally. In addition, we are restructuring our cost base which has, and will lead to expanding profitability and free cash flow. The result of efforts by the senior management team and our employees across the company is a Gannett that is stronger now than even a year ago. We are in a great position to pursue many opportunities to grow."
"We continue to take bold steps to move our company forward. To leverage our audience touch points across platforms and to grow the top line, we are fundamentally changing our approach to selling locally and nationally. In addition, we are restructuring our cost base which has, and will lead to expanding profitability and free cash flow. The result of efforts by the senior management team and our employees across the company is a Gannett that is stronger now than even a year ago. We are in a great position to pursue many opportunities to grow."
Why Gannett is still burdened with $2.2B in debt
"We believe Gannett's stock is a terrific value and a very attractive investment."
-- CEO Craig Dubow in a July 25, 2006, statement announcing that, under his chairmanship, the board of directors had authorized Corporate to buy back an additional $1 billion worth of Gannett's stock. Shares closed that day at $52.57. By then, Corporate had already spent a substantial portion of the $1 billion earmarked for stock buybacks only a year before.
Ultimately, GCI blew $1.8 billion on buybacks in 2005-2008, paying an average $64 a share.
Today, COO Gracia Martore said in a statement that she expects GCI will finish the current quarter with $2.2 billion in debt, after paying down an additional $150 million. GCI closed today at $14.93.
Urgent: GCI closes down 3% on earnings forecast
Gannett shares just closed at $14.93, down 2.9%, on a day when markets overall were higher. The decline followed this afternoon's presentation to Wall Street media stock analysts. Earlier today, GCI traded as low as $14.64. Investors reacted to Corporate's revenue and earnings forecasts, including a statement that included the following key information, attributed to COO Gracia Martore:
"Certain sectors of the economy here in the U.S. are showing signs of growth and that is reflected in our results. Our domestic publishing results continue to reflect strength in the auto and employment categories. Firming employment ad demand impacted our digital segment as well, resulting in significant revenue growth. Our cross-platform sales efforts continue to take hold as digital revenue company-wide was 12% higher through February, reflecting solid growth in publishing and broadcasting digital revenue. We expect the percentage decline of revenues in our publishing segment to be in the 6% to 7% range in the first quarter while total television revenue will decline a little over 2%, reflecting the absence of over $24 million in Olympic, political and Super Bowl spending. Excluding the incremental impact of these events, total television revenues will be up approximately 6% to 7%."
Martore also provided earnings per share guidance for the first quarter. "Based on current trends, we expect to achieve the First Call consensus of first quarter earnings per share estimates of 41 cents. We expect to reduce debt by approximately $150 million in the quarter and will end the first quarter with debt outstanding of approximately $2.2 billion."
A worrisome trend?
Now, compare Martore's new publishing segment revenue forecast for the current quarter -- a decline of 6%-7% -- to the actual results in the fourth quarter: "Publishing segment operating revenues were $1.1 billion for the quarter, a decline of 4.7% compared to the fourth quarter in 2009."
 |
| Martore |
Martore also provided earnings per share guidance for the first quarter. "Based on current trends, we expect to achieve the First Call consensus of first quarter earnings per share estimates of 41 cents. We expect to reduce debt by approximately $150 million in the quarter and will end the first quarter with debt outstanding of approximately $2.2 billion."
A worrisome trend?
Now, compare Martore's new publishing segment revenue forecast for the current quarter -- a decline of 6%-7% -- to the actual results in the fourth quarter: "Publishing segment operating revenues were $1.1 billion for the quarter, a decline of 4.7% compared to the fourth quarter in 2009."
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