By: Mark Fitzgerald When does a salary freeze include a pay raise?
In the Times Co.'s proxy for its annual meeting, filed with the U.S. Securities and Exchange Commission (SEC) Wednesday, the company notes that for the third consecutive year the salaries of four top "named" executives, including Chairman Arthur Sulzberger Jr. and President Janet L. Robinson, were frozen in 2008. Salaries were frozen after 2006 because the company's board of directors reduced the benchmark for comparing Times Co. executive salaries to what bosses get at other big media companies. At the same time, performance-based benchmarks were moved up. The idea, according to the proxy, was to emphasize performance over base salary in total compensation.
But all that does not mean Sulzberger and three other top executives didn't see a little bit more in their paychecks, the board Compensation Committee explains in the proxy.
"Recognizing the impact of a multi-year salary freeze, however, the Committee approved one-time discretionary bonuses for Mr. Sulzberger, Jr. ($38,045), Ms. Robinson ($35,000), Mr. (Michael) Golden (Times Co. vice chairman) ($21,945), Mr. (Scott) Heekin-Canedy (New York Times president and general manager ($18,288), and Mr. (James M.) Follo (Times Co. CFO) ($21,600)," the proxy says. "These bonus payments had no incremental effect on the recipients' annual performance-based bonus potential, long-term performance award potential or welfare benefit levels."
Even with the "discretionary bonus," however, Sulzberger's total compensation fell quite a bit in 2008 for the second year in a row.
He collected a base salary of $1,087,000 and total compensation of $2,415, 847. In 2007, the salary was the same, but the total came to $3,429,280. In 2006, with the same base salary, Sulzberger's total compensation was $4,363,856.
Executive base salaries will be frozen again in 2009, the proxy said.
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