McClatchy’s holiday gift to top executives…
Back when I was a cub reporter at a Knight-Ridder newspaper on Florida’s west coast, all of us reporters would anxiously await the annual holiday handout of a free turkey or ham courtesy of our benevolent employer. Of course, most of us being in our early 20s, single, and far from home, it was a pretty useless gift. Even those of us who were heading back to our families for the holidays weren’t likely to drag a turkey or ham along for the trip.
So it was nice to see that McClatchy (MNI), which acquired Knight Ridder nearly four years ago, has gotten a bit more generous with the holiday handouts this holiday season, judging by this 8-K filed on Friday. Well, at least more generous for some of its employees, that is.
According to the filing, top executives will get lots of restricted stock — a whopping 450,000 RSUs for Chairman and CEO Gary Pruitt, who masterminded the Knight Ridder deal. McClatchy stock has dropped over 90% since the deal was announced. The RSUs vest in March 2012.
Other top McClatchy executives also got more than a ham or a turkey, though none fared as well as Pruitt. CFO Patrick Talamantes got 70,000 RSUs plus another 100,000 stock appreciation rights that allow him to purchase McClatchy stock at $3.42 a share. Two other top executives each received 80,000 RSUs and another 100,000 SARs. A quick skim of the filings shows that while the program has been around since 2004, this is the first year in quite some time that RSUs — and certainly so many of them — have been handed out.
Given the current state of the newspaper industry — something I read about each morning on Romenesko, including this story which estimates that more than 40,000 journalists lost their jobs in 2009 — the generous handouts to some of the very folks who failed to have the vision to see the approaching iceberg seems like a sad post-script to a very sad year for journalism.
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Posted in Tags: 8Ks, Friday filings |
 4 Comments » |
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December 23rd, 2009 at 12:21 pm
Pretty sad about paper chase. Lawyers axed too & we know who goes first.
NY Times upgraded & at 52 week high. Cuts must of helped.
CBSMW has a few cutting stories for Holiday Joy around the orb.
You can’t downsize Santa.
Santa Claus is comin’ to town, and he won’t be standing in line at the unemployment office when he does. Despite a rough year on the job front for millions of Americans, jolly old St. Nick still has plenty of offers, although his hours may be getting nicked a bit.
While folks who book Santa for private parties may have had to pare back in the recession, malls and department stores can’t give the red-suited one a pink slip no matter how humbug sales may be in any given year. You can’t disappoint the kids and expect the parents will still stick around to shop.
For most Santas the gig is up after Christmas, but there are still plenty of professional Kris Kringles who make merry year-round at a host of gatherings at hospitals, nursing homes, shelters and other charitable functions. For them the paying customers this time of year are key — the money they make this time of year supports all those gifts the rest of the year.
The biggest qualification for a Santa job: a real beard. To kids, phonies stick out like Rudolph’s red nose.
– Steve Kerch, assistant managing editor/personal finance
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A Christmas tradition under threat in Spain
The annual giving of the Christmas cesta, or basket, to employees from their employers in Spain is facing some changes. The economic crisis here has many companies tightening their belts and that holiday extra this year may be less bountiful or nonexistent for some workers.
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Just in time for Christmas, a greeting card company announces layoffs. And ay Chihuahua! California’s animal shelters are overrun by these tiny pets.
December 29th, 2009 at 11:25 am
I dunno, I’m not sure I have an issue with this. They’re getting fat packets of RSUs, but the shares don’t vest for more than two years and the stock is in the tank. In principle, it gives them a strong incentive to raise the share price, and that’s their job– which won’t be easy in an industry like newspapers.
Of course, if these execs have been around for years and presided over the long-term collapse (I don’t know their histories), then this specific example might be stupid since the brass should be fired. But in principle, the company is in the tank and the C-suite’s bonus has been tied to that, so they’ll try to get back out of the tank. That’s the way it’s supposed to work.
December 29th, 2009 at 11:39 am
@Joey: I can certainly see your point, but Pruitt, for one, has been there for awhile and was the driving force behind the Knight-Ridder deal. RSUs that vest after two years are certainly better incentives — or at least more closely aligned with shareholders — than other things, but the bottom line remains that this company’s management — and management at other newspaper companies — missed the boat and there’s over 40,000 journalists out on the street because of that!
December 30th, 2009 at 12:15 am
Joey, you get rewarded AFTER you turn the company around NOT before. THAT’S the way it’s supposed to work.