Whoo-hoo! I finally found Craig Dubow's 2005 employment contract, which he signed after the board of directors named him chief executive officer four years ago. Now 54, Dubow (left), and Chairman Doug McCorkindale (below) executed the 11-page contract on July 25, 2005; it was filed four days later at the U.S. Securities and Exchange Commission. Also signing for the company: James Johnson, then head of the board's compensation committee.
I'm a public documents junkie, so my eyes lit up when I saw this: Paragraph 8(b) Miscellaneous Additional Benefits, Post-Retirement. I quote: "After Dubow ceases full-time active employment (whether before or after reaching his normal retirement date) for any reason other than good cause as defined in Section 5(a)(iii), he shall receive all benefits afforded to other retired executive officers generally, as described in Exhibit A to this Agreement as such Exhibit A may be revised from time to time."Exhibit A: CEO Retirement Benefits
This is the first time I've seen the generous "executive health insurance" promised to Dubow and his family. As near as I can tell, it's 100% company-paid, and good for the rest of their lives:
1. Life Insurance. The CEO owns a whole life insurance policy in an amount equal to 2 times salary and last bonus plus $200,000, or $300,000 if a member of both the Gannett Management Committee and Board of Directors. Gannett pays the policy premium. Upon retirement, the policy’s face amount reduces 10%, and 10% each year thereafter, to a minimum benefit of $350,000.
2. Travel Accident Insurance. The CEO receives insurance equal to 3 times salary and last bonus on a 24-hour business or pleasure basis. (This is in addition to the regular employee travel accident insurance benefit of 3 times salary and last bonus.) Upon retirement, the benefit ceases. However, if a retired CEO is asked to represent Gannett at a function or event and receives prior approval from the then-current CEO, travel accident insurance coverage of $1,000,000 will be provided while on business travel status.
3. Executive Health Insurance. The CEO receives supplemental health coverage with a maximum annual benefit of $25,000 per executive family. (This is in addition to the regular employee health insurance coverage.) Upon retirement, the maximum annual benefit remains unchanged. Upon death, the maximum annual family benefit for eligible dependents becomes $12,500 per year for life.
4. Company Automobile. Upon retirement, the company automobile is offered to the CEO at the fair market value.
5. Legal and Financial Services. Upon retirement, this benefit ceases on April 15 of the year of retirement or the year following retirement, depending on the actual retirement date.
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What's next in Exhibit A? A free trial of cocaine?
ReplyDeleteSo, how can any Gannett publication or broadcast outlet report on AIG compensation, in light of this, and not reek of hypocrisy?
ReplyDeleteHe should resign, and the nation's largest newspaper company should take the initiative on executive compensation, and set the standard to redeem itself as protector of the Fourth Estate.
I don't understand the health bennies. As a GCI employee, Dubow gets the regular plan like everyone. So what does this plan offer that the regular plan does not. I also believed that execs were not entired to health and retirement plans not offered to their regular employees.
ReplyDeleteWhat I like about this blog is that you work really hard for these nuggets of information. Most of us would never know the details of how this company operates without your efforts.
ReplyDeleteI'm glad I didn't know all this stuff when I was working for Gannett. It would have been totally disheartening. I like reading it now that I'm no longer in the newsroom, however.
ReplyDeleteThe chasm between the haves and the have nots in this corporation are striking. As is the assumption that those at the top "earned" and "deserve" special consideration.
And you know, when one goes there is another one waiting in the wings, ready to assume the mantle of leadership [or whatever stands for leadership in Gannett today].
Dubow gets bonus and Gannett puts up the Ranch for sale. Another bennie taken away from the working class. When does this bs stop???
ReplyDeleteWhy should a CEO have to pay for anything out of his or her own pocket? I think CEOs should get the biggest, fattest salary, and have Gannett pay for everything they want or need till death do us part.
ReplyDeleteIf the level of greed wasn't so high, I'd be laughing.
The entitlement generation of CEO at Gannett, began with Neuharth.