By: Theresa Agovino, AP Business Writer (AP) Gannett Co. Inc., the largest newspaper publisher in the country, has canceled next year's raises for approximately 80 of its top executives, following the lead of other major publishers struggling with a difficult business climate for newspapers.
"This is a better way to cut costs than other methods out there," said Gannett spokeswoman Tara Connell on Friday. "It sends a good message to stakeholders of all sorts -- employees, shareholders, analysts." Connell said the company made the decision last month but did not publicize it.
Other newspaper companies have made similar moves due to the severe downturn in advertising. Last month, Tribune Co. announced 5% pay cuts for senior managers and said cash bonuses for 2001 would be "minimal." Knight Ridder has also said its corporate executives would receive no bonus for 2001 and there would be a salary freeze in 2002 for individuals earnings more than $200,000 a year.
Gannett, which owns 97 U.S. newspapers including
USA Today, has also laid off 3.5% of full-time and 13% of part-time U.S. employees in an effort to cut costs, Connell said. Gannett has 43,000 U.S. employees.
Connell said the executives would be given stock options to compensate for the lack of a raise. Executives will still receive bonuses for 2001, though they may be lower than previous years; a decision will be made shortly, she said.
Connell said that other company employees will be receiving raises although she declined to give a range for the increases.
The executives affected by the decision include Gannett chairman and chief executive Douglas H. McCorkindale: Gary Watson, president of the newspaper division; and Thomas Curley, a senior vice president who oversees
USA Today.
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