The New York Times has a lot of nerve cutting back their employees’ health benefits, firing people, and crying poor when, at the same time, they paid their outgoing CEO $24 million.
NYT Publisher, Arthur Sulzberger, Jr., had to make the sum public on Friday when he filed a proxy with the SEC.
Bloomberg news reports that the former CEO was pushed out, and is calling the sum her “exit package” – whereas Reuters and the NYT are calling it her “payout” or “her total compensation” which makes it sound like it includes her yearly salary. No matter.
Twenty-four Million Dollars…. That gets you Janet Robinson for 7 years. Seven horrible years for the NYT, given that, when Robinson left in December of 2011, “the company reported a net loss of $39.7 million…” Their stock and advertising plummeted during her tenure.
This year, Robinson gets an extra $4.5 million “consulting fee,” and now calls herself “retired.”
Accourding to Reuters, “Excluding the consulting fee, Robinson would have been paid the same amount whether she was terminated, resigned or retired, according to the filing with the U.S. Securities and Exchange Commission [on Friday].”
Sulzberger made $5.9 million last year. (He gave back his “incentive” award/bonus.) In the same 7 years as Robinson, that’s a total of $41.3 million.
It’s a confusing contradiction. You have the publisher of the NYT making an asinine deal with Robinson to pay her outrageous amounts of money even as his company is losing revenue. And you think, well maybe the reason the NYT is in debt is because they pay their top two or three people WAY too much money. The only explanation is that it’s contractual.
Meanwhile, according to the NYT eXaminer, the reporters have been working without a contract for a year.
More good reading on the subject is this article by Kyle Smith, a contributor to Forbes.