Corporate announced this morning that Chief Financial Officer Paul Saleh has resigned, effective immediately, for a job with a much larger Virginia company, leaving one of Gannett's most important posts after just 18 months.
He is joining Computer Sciences Corp. of Falls Church, Va., as CFO, effective May 23, according to a separate announcement by that company. CSC says it provides tech solutions and services to businesses. It reported $16 billion in revenue last year, and has 98,000 employees, making it about three times bigger than GCI.
At GCI, Michael Hart, vice president and treasurer, will serve as interim principal financial officer until a permanent CFO is appointed, the company says.
Saleh, 55, was named CFO in November 2010, filling a post that Gracia Martore held before she was promoted to president. Martore was then named CEO last October.
The CFO is mainly responsible for managing financial operations, including reaching revenue and income targets. It's an especially crucial job at company in decline. As CFO, Saleh would have been a possible candidate to succeed Martore, 60, when she reaches mandatory retirement age in five years.
The wording of Corporate's statement gives at least the appearance Saleh's exit is amicable. Nonetheless, his departure after such a relatively short period doesn't contribute to an image of stability. He's leaving as GCI continues to struggle in stabilizing revenue and profits, especially in its largest division: community newspaper publishing.
The news was announced an hour before stock markets opened, and major investors appeared to be taking it in stride. GCI's stock recently traded for $13.15 a share, down 1.7%.
His $150K signing bonus in 2010
GCI paid Saleh $2.2 million last year, including a $540,000 cash bonus and the estimated future value of $981,250 in stock options. He will be unable to claim many of those options because he's leaving before they vest, however.
GCI paid him a $150,000 signing bonus for coming to the company in 2010. He had been working for a consulting firm, Menza Partners, that he had co-founded.
Here's the full text of Corporate's statement:
Gannett announced today that senior vice president and chief financial officer Paul Saleh has resigned to accept a position with a Fortune 200 company. The search for a new chief financial officer for Gannett is currently underway. Effective immediately, Michael Hart, vice president and treasurer, will serve as interim principal financial officer until a permanent CFO is appointed.
Gracia Martore, president and chief executive officer, said, "As a member of our senior management team, Paul played an important role in ensuring the Company's financial strength and implementing our ongoing focus on asset optimization. We appreciate his contributions to Gannett, and we wish him well."
Saleh said, "I am grateful for the opportunity to have worked with Gracia and a very talented leadership team on a plan to position Gannett for success in the digital age."
He is joining Computer Sciences Corp. of Falls Church, Va., as CFO, effective May 23, according to a separate announcement by that company. CSC says it provides tech solutions and services to businesses. It reported $16 billion in revenue last year, and has 98,000 employees, making it about three times bigger than GCI.
At GCI, Michael Hart, vice president and treasurer, will serve as interim principal financial officer until a permanent CFO is appointed, the company says.
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| Saleh |
The CFO is mainly responsible for managing financial operations, including reaching revenue and income targets. It's an especially crucial job at company in decline. As CFO, Saleh would have been a possible candidate to succeed Martore, 60, when she reaches mandatory retirement age in five years.
The wording of Corporate's statement gives at least the appearance Saleh's exit is amicable. Nonetheless, his departure after such a relatively short period doesn't contribute to an image of stability. He's leaving as GCI continues to struggle in stabilizing revenue and profits, especially in its largest division: community newspaper publishing.
The news was announced an hour before stock markets opened, and major investors appeared to be taking it in stride. GCI's stock recently traded for $13.15 a share, down 1.7%.
His $150K signing bonus in 2010
GCI paid Saleh $2.2 million last year, including a $540,000 cash bonus and the estimated future value of $981,250 in stock options. He will be unable to claim many of those options because he's leaving before they vest, however.
GCI paid him a $150,000 signing bonus for coming to the company in 2010. He had been working for a consulting firm, Menza Partners, that he had co-founded.
Gannett announced today that senior vice president and chief financial officer Paul Saleh has resigned to accept a position with a Fortune 200 company. The search for a new chief financial officer for Gannett is currently underway. Effective immediately, Michael Hart, vice president and treasurer, will serve as interim principal financial officer until a permanent CFO is appointed.
Gracia Martore, president and chief executive officer, said, "As a member of our senior management team, Paul played an important role in ensuring the Company's financial strength and implementing our ongoing focus on asset optimization. We appreciate his contributions to Gannett, and we wish him well."
Saleh said, "I am grateful for the opportunity to have worked with Gracia and a very talented leadership team on a plan to position Gannett for success in the digital age."
Maybe he saw an iceberg.
ReplyDeleteGannett = U.S.S. Titanic 100 years ago; and he was able to get onto a lifeboat. I got onto one a decade ago, thank God.
ReplyDelete"GCI paid Saleh $2.2 million last year, including a $540,000 cash bonus and the estimated future value of $981,250 in stock options ... GCI paid him a $150,000 signing bonus for coming to the company in 2010."
ReplyDeleteWho arranged this for Gannett? George Steinbrenner, Al Davis or Dan Snyder? Oh wait, two are dead. What a recruiting strategy with lots of upfront $ (and a VERY poor ROI) no matter how the spin is.
How many layoffs and terminations did Saleh recommend in his time with Gannett? Sounds like turnabout is fair play. Except for the 2 mil that is.
ReplyDeleteI don't know Saleh but have to assume from his hiring at Computer Sciences that he's pretty good at what he does. It has ALWAYS been true that talented people, with a few exceptions, migrate out of Gannett sooner or later. The culture is stifling, and the company has no leadership, vision or future. The best people are smart enough to move on rather than waste their energy on this POS.
ReplyDeleteWell said, 11:09. Couldn't have said it better myself.
ReplyDeleteCan't blame him as he realized just what he signed up for. Take the money and run.
ReplyDeleteCan you just imagine how often he was second guessed and micro managed by the former CFO. Talk about stifling!
ReplyDeleteThis just shows that senior management at Gannett is actively job hunting and should be a clear message to all employees.
ReplyDeleteGannett CFO job? Vacant
ReplyDeleteGannett top HR role? Vacant
3-4 CEO's the past decade
All = This "ain't" the 1970's/1980's in Rochester, NY.
Why not sell the unnecessary Biltmore Estate and move back to Rochester?
Saleh bolting after just 18 months and leaving so much money on the table speaks volumes about Gannett, none of which is complimentary.
ReplyDelete1:35 is correct. We can say all we want that Paul had a great offer and it was too good to refuse. But the simple truth is that if he felt the company was worth sticking with, he would have told his now-successful suitor, "Thanks, but I am a key player in the soon-to-be successful transformation of my current company. It's in my best interest to honor my commitments and help make this happen."
ReplyDeleteThe fact is, he felt it would be better for him, personally, to leave. Whether that's money, or his colleagues, or his bosses, or him seeing an iceburg ahead, it really doesn't matter.
If a Senior Vice President and CFO of the company, making north of $2 million in annual compensation, sees greener pastures (best case scenario) or danger ahead (worst case scenario), what message does that send to the rest of us?
Insightful and well-stated, 2:26.
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ReplyDeleteWe need Bain Capital to step up and take over. With all the layoffs it couldn't get much worse.
ReplyDeleteA good CFO can make a lot of bucks stepping up to a bigger company. It's also a prime step below CEO, as we know from our experiences at Gannett.
ReplyDeleteMaybe he knew he would not be Martore's eventual successor. Maybe he had enough of the place. Doesnt matter.mat the end of the day, he's a cost savings.