WHAT HEELS: Gannett Execs Get Bonuses, Employees Get Bupkis
For years, the beleaguered employees of troubled Gannett employees have been taking an unpaid furlough, and 2011 will be no exception. But the austerity measure, which has saved the company $33 million over the past two years, doesn’t extend to the company’s C-level execs, who will be getting a hefty bonus, reports The New York Times:
Robert J. Dickey, Gannett’s president of U.S. Community Publishing, said, “I know furloughs are very hard on you and your families and I thank each of you for the continued commitment and great work.” …
But as it turns out, the buck stopped just short of [Craig A. Dubow, the chief executive] and other executives. Mr. Dubow had agreed to lower his salary by 17 percent through 2011, but then again, last month he received a cash bonus of $1.75 million for 2010 and [Gracia C. Martore, the president and chief operating officer] received $1.25 million. For 2010, they were also awarded stock, options and deferred compensation that would bring their combined packages to $17.6 million if the company and its stock hits certain targets.
A company spokeswoman pointed out that 70 percent of their compensation was noncash and dependent on future performance. …
In terms of financial engineering, Mr. Dubow and his crew have done a good job with a bad hand. Last year, revenue was down only marginally, and according to the company operating cash flow was $1.3 billion, up 19 percent from 2009, while debt was reduced by $710 million, to $2.35 billion. …
In the five years that Mr. Dubow has run the company, its work force has gone from 52,000 employees to just over 32,000. …
In announcing that Mr. Dubow would receive a hefty package, double the previous year, Gannett hardly shied away from part of what was driving the award: “The company achieved substantial expense reductions through a variety of efforts, including continued centralization and consolidation efforts and salary freezes, positioning the company for growth as economic conditions improve.”
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