Friday, October 24, 2008

Pruitt's lame answer to a tough question means it should be "Golden Parachute Time" at McClatchy

Gary Pruitt had his "the-emperor-has-no-clothes moment" Tuesday when a financial analyst asked a pointed question that any CEO worth his $4.6 million salary should have an answer for.

During McClatchy's 3rd quarter earnings call, financial analyst John Cornright pointed out the bond market is betting McClatchy won't be around in 5 years, and asked Pruitt his strategy to keep the company alive that long. In response, Pruitt gave one of the lamest answers imaginable by a CEO -- "Well, our audience is growing" -- or words to that effect.
McClatchy's family-oriented board is notoriously weak, and has yielded to Pruitt's plans for years. Will Pruitt's conference call debacle be the catalyst for the board to man up and take steps to bring respectability -- and leadership -- back to McClatchy?

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