Bosses at GateHouse Media, the company that owns the Peoria Journal Star and most other daily and weekly newspapers in Central Illinois, received bonuses in 2010 that surpassed those received in 2009, according to company’s annual report to the Securities and Exchange Commission.
Item 9B.Other Information
(a) On March 1, 2011, awards of annual cash bonuses to certain GateHouse Media, Inc. executive officers were declared, as set forth below. It is anticipated that such bonuses will be paid out late in the first half of 2011.
Executive Officer Cash Bonus
Michael R. Reed
Chief Executive Officer $750,000
Melinda A. Janik
Senior Vice President and Chief Financial Officer $160,000
Polly Grunfeld Sack
Senior Vice President, Secretary and General Counsel $140,000
Kirk A. Davis
President and Chief Operating Officer $275,000
Mark Maring
Treasurer and Vice President of Investor Relations and Strategic Development $80,000
(b) On March 4, 2010, the Board of Directors of the Company approved a two year extension, through March 13, 2012, of the Company’s previously approved share repurchase program (the “Program”), otherwise on the same terms and conditions. The terms and conditions of the Program are as described in our Current Report on Form 8-K, filed with the Commission on March 14, 2008.
Compare these new figures to the bonuses paid out just one year ago:
Executive Officer Cash Bonus
Michael R. Reed,
Chief Executive Officer: $500,000
Melinda A. Janik,
Senior Vice President and Chief Financial Officer: $150,000
Scott Champion,
Regional Manager: $50,00
Polly Grunfeld Sack,
Senior Vice President, Secretary and General Counsel: $125,000
Kirk A. Davis,
President and Chief Operating Officer: $250,000
Mark Maring
Treasurer and Vice President of Investor Relations and Strategic Development $75,000
That means David Read got $250,000 more bonus money that year year. Melinda Janick got $10,000 more. Polly Grunfeld Sack got $15,000 more. Kirk A. Davis got $25,000 more. Mark Maring got $5,000 more. Scott Champion is no longer with the company.
David Read??
Thanks, got it.
You still spelled Michael wrong. Sorry, Bill.
Well, since you moderated me, I might as well tell you about the other mistake in that sentence. “year year”
Funniest line: “A shortage of skilled or experienced employees in the media industry, or our inability to retain such employees, could pose a risk to achieving improved productivity and reducing costs, which could adversely affect our profitability.”
The company is only worth $9 million dollars.
Mahkno: Can you tell me where you got that figure?
What is Gatehouse worth? Go to ghse.pk on Yahoo Finance and look at the Market Capitlization number. Shares outstanding X Share Value = Market Capitalization. Don’l forget they owe $1B due in 2014. I’d be grabbing big bonuses, too. It isn’t going to last.
OK, the company reportedly made $1.1 million in profit in the fourth quarter of last year, after 8 straight quarters of loss. They paid out over $1.4 million in bonuses to the top execs. Had they eliminated the bonuses, they would have more than doubled the profitability of the company. The company is worth about $9 million, and they owe close to $1 billion that is supposed to come due in 2014. The financial clock is ticking on these folks. They are going to take away as much as they can like bandits, while the worker bees suffer.
Let’s say that Gatehouse has about 36 months to come up with $1 billion dollars. This assumes that the $1 billion in long term debt will come due in mid 2014. Gatehouse would have to cash flow about 27.78 million per month to pay off the debt. They did $1.1 million in the last quarter of 2010, after 8 consequitive quarters of loss. The strategy will be to negotiate pennies on the dollar on the debt. Let’s say they can cut a deal for 30 cents on the dollar on the $1 billion dollar debt. That would still require postive cash flow in the neighborhood of just over $8 million per month company wide. If they are going to pau $1.4 million in bonsues to the execs, that number needs to be upped. I am just curious what the rest of you think the odds are that they will make it??????
This is ridiculous! I work for Gatehouse. We have roughly 50 employes, give or take a few. With the exception of a few people at our paper, everyone struggles just to make ends meet. Constantly getting our hours cut. No pay raises. There are employees that haven’t had raises in 10-15 years. The price of everything goes up- but apparently our pay isn’t important enough to be increased. Makes me sick.
Gatehouse is not an employee friendly company. I know, I work for them. They cut positions, won’t pay overtime, (I work 45-55 per week, get paid for 40,) and are continually asking us to take on more responsibilities and duties with not only no increase in pay, they flat out tell you, “you’ll never get a raise as long as you work here.”
I’ve built one of their papers from eight pages each week and losing money, to the county paper at 10-16 pages per week, online edition, making money and loved by the community. I make the same amount I did four years ago, and always will.
Wait, what’s that knock I hear at my door? Another newspaper wanting to hire me as their publisher… hmmm.
Gatehouse, your product is only as good as your employees. If you don’t take care of them, eventually they will no longer take care of you.
Well Someone better tell gatehouse loosen there ties and take off their gold and platnium cuff links and find a pair of gloves because negotiations start torrow and its gonna be a fight and not that boxing crap that these suits grew up watching its gonna start more as an mma fight but might turn into a straight up street fight. So somebody should tell them to work on there cardio it might be the only thing they might leave with cuz we are coming and taking their pride and if it was legal their bonus too lmao
This is truly stomach-churning.
One thing is consistent throughout Gatehouse culture: their miserly approach to the average worker.
Of course the company will not prosper or enjoy longevity, much less respect for solid journalism – despite the many talented folks who love what they do. Who can accomplish real journalism in their overworked newsrooms?
And nothing will be sustained on the misery of others. That is never a formula for success in either personal relationships, business, or world regimes. It’s a very wobbly structure to build upon the oppression and suffering of others.
These bonuses in the bald face of unsustainable debt proves that the execs know they have little time to fleece the company.
How can the stockholders approve such highway robbery?
Just when you think Gatehouse can’t stoop lower, they prove they can slither.
The previous comment was well put.
This may call for an editorial cartoon. Robber barrons come to mind.
I can’t believe what I read and hear about this company….
They are the WORST people in the world to work for.
We had to cut 50,000 dollars from our budget PER YEAR,
causing 35 hour work weeks, forced retirement of someone who has been with our local newspaper FOREVER!! I mean 60 years, AND TO TOP IT OFF THE VP OVER OUR REGION SAID IT WAS NOT IN THE BUDGET TO BUY HER A RETIREMENT GIFT NOR THROW HER A PARTY!! Well Maybe if GHM wasnt giving out $750,000 bonuses to TOP DOGS they could by her an f’n RETIREMENT CAKE!!
I swear that when Judgement day comes you CEO’s of Gatehouse will not be sitting next to This amazing woman who has given her WHOLE LIFE to THIS NEWSPAPER!!
May you rot in a HUGE INK BARRELL and be ran through a SHITTY PRESS!
Oh and P.S. One day all of us Employees are gonna get a phone call from an attroney asking for information on a LAWSUIT AGAINST YOUR ALLS ASS! so if I were you I’d take your money and run.
God works in mysterious ways.