Monday 19 April 2010

Stephen Glover: 'Fat cat newspaper executives are being rewarded for getting rid of people'

Independent media columnist Stephen Glover turns his fire today on newspaper executives who are getting huge salaries despite profits plunging at their companies - and compares them to "fat cat bankers".
In particular, Glover singles out Mecom boss David Montgomery  and Trinity Mirror chief Sly Bailey and suggests they are being rewarded for "getting rid of people".
Glover says: "Last week it emerged that David Montgomery, the chief executive of the European newspaper group Mecom, was paid £874,000 in his total remuneration package in 2009, an increase of 51 per cent compared with the previous year. And yet Mecom posted a 28 per cent fall in profits in a year in which the company laid off 850 staff, roughly 10 per cent of the workforce.
"The lay-offs provide a clue. Mr Montgomery is an expert at cutting costs. It is his chief – some would say his only – attribute as a newspaper executive. The company reduced operating costs by €140m (£123m), and much of the credit must go to Mr Montgomery – hence his increased package. But is cost-cutting reason enough to pay someone more money, particularly when profits fall?
"A similar picture emerged recently at Trinity Mirror. Its chief executive Sly Bailey received a total remuneration package of £1.68m in 2009, an increase of 66 per cent compared with the previous year. And yet in 2009 Trinity Mirror reported a 41 per cent fall in pre-tax profits while sacking 1,700 people and closing or selling 30 titles. Like Mr Montgomery, Ms Bailey seems to have been rewarded principally for getting rid of people.
"If a newspaper group increases profits, particularly during tough times, its most senior executives should receive significant rises. But when profits fall? The Daily Mirror would scream if a banker's salary soared as profits dropped, but its own Sly Bailey is judged in another light. Why are newspaper executives different? As the Daily Mail might say: "They still just don't get it, do they?"

1 comment:

sandrabbw said...
This comment has been removed by a blog administrator.