New York Times Management to Shareholders: Let Them Eat Cake
The New York Post has the story of the shifting goalposts when it comes to the executive compensation at the New York Times company. This is the same New York Times whose Pulitzer prize winning business writer has a series of articles called Gilded Paychecks. As our friend Don Luskin wryly noted today,
WHERE’S GRETCHEN MORGENSON WHEN WE NEED HER?
The New York Time’s true crime reporter on the business beat somehow managed to overlook this story, which would seem to fall so neatly into her usual narrative about how corporate mangement enriches itself with incentives that kick in even when the company performs poorly.
Here’s the story from today’s New York Post,
March 15, 2007 — Even steep losses at The New York Times didn’t stop its family owners from enriching themselves and insiders with bonuses for making “profits” when there were none.
Although its board acknowledged in filings yesterday that the media company lost $3.76 per share in 2006, directors revised its bottom-line bonus formula to exclude embarrassing write-downs, converting millions in losses into instant profits of $1.58 per share….
…Chairman Arthur “Pinch” Sulzberger, 55, failed to meet his company’s original targets based on earnings per share, but the board voted anyway to let him collect as much as $3.4 million in bonus and stock awards by using more optimistic cash flows instead of final earnings per share.
I don’t know which is worse, the greed of Chairman Arthur “Pinch” Sulzberger and his management team or their hypocrisy? What do you think?
March 17th, 2007 at 11:27 am
Well, Just as all Socialists do..the Leaders take the money, the “workers” pay the price..because the LEADERS are special folks and must be coddled for all their hard work. Can You imgine in Krushev’s Russia where Russian families were living 10 to a 2 room apartment that Kruschev would have a Lovely Huge Office and a Lovely Family HOme..and yet again a Lovely Dasche for them all to summer in?
People in Socialist France have tiny apartments..sometimes just one room..while the priveleged have Huge Estates…
Sadly, in both situations..none of the Regular Folks have the Chance to Work towards a bigger home or apartment…instead unlike the US..they just give all their salaries to the Government and support lavish lifestyles for their LEADERS!
If you make an extra buck..you are Highly taxed ..so much so that you do not bother to make the extra buck…thus 10% unemployment and Welfare abound. The NY Times is an example of the Socialist type of thinking..
and when we see private companies lose money..99% of their leaders DO IN FACT FACE THE MUSIC OR LOSE THEIR JOBS..but not so in the NY TIMES world!
March 17th, 2007 at 11:29 pm
Media Alert: The Dude on WRKO Boston’s Talk Station …
The Dude will be on Gregg Jackson’s show Sunday night, March 18th. Gregg and The Dude met while The Dude was blogging the Conservative Political Action Conference (CPAC). R to L: The Dude from Panzer Commander, John Tabin from The……
March 23rd, 2007 at 8:54 am
[...] Greedy company bosses enrich themselves — at the New York Times (HT Pundit Review via Don Luskin). [...]