Tuesday, November 4, 2008

Gannett CEO takes pay cut -- is Gary Pruitt next?

Ganett CEO Dubow announced he is taking a 17 percent pay cut.
Gannett Chairman, President and CEO Craig Dubow -- saying he wants to share in the “deep sacrifices” of employees of the nation’s largest newspaper company -- announced late Monday he is taking a voluntary salary cut of $200,000 from now through 2009.

Dubow volunteered the pay cut, a 17% reduction from his $1.2 million base salary, to the board of directors, which accepted it. With bonus, deferred compensation, and stock awards and options, Dubow’s total compensation is about $7.5 million.

In a memo to employees, Dubow also said all company and divisional officers will have their salaries frozen for 2009.

"All Gannett employees are making deep sacrifices for their company," Dubow said in the memo. "I have great empathy for those employees and their families who have lost their jobs. I also recognize that our employees are working harder and harder to produce results in a challenging business environment.

“But I firmly believe the steps we are taking now are necessary and will serve as the foundation for our future success. I want to thank all our employees for their patience and loyalty during these difficult times."

Gannett recently announced another round of layoffs that will reduce staffing by 10% across the chain.

Gary Pruitt should announce his own pay cut sooner rather than later.

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