Edition, March 7, 2001, Page 1
LOSES GRIP ON $1M PUERTO RICO ACCT.
The Puerto Rico Tourism business, which is a $1 million
PR account for Hill and Knowlton, is said to be loose.
Joan Brower, senior managing director of H&K's travel
and tourism group, would only say that H&K has not received
an official termination notice from Puerto Rico.
Another staffer, however, said the firm wrapped up its Puerto
Rico work at the end of last year in the aftermath of November's
election for governor.
That race saw Sila Maria Calderon of the Popular Democratic
Party beat Carlos Pesquera of the ruling New Progressive
Her election resulted in a re-shuffling of the ranks in
the tourism office.
H&K does (or has done) travel PR work for Celebrity
Cruises, Palm Beach County Convention & Visitors Bureau,
Mirage Resorts, Nice Convention & Visitors Bureau and
Detroit Marriott Renaissance Center.
Depositions for ten defendants and witnesses in the lawsuit
of Cohn & Wolfe vs. the Titan Network, Atlanta, scheduled
for March 5 through March 19, have been cancelled for the
A lawyer for the Cohn & Wolfe side gave no reason and
would not say whether other dates have been set. Executives
at Titan (Anthony DeMartino, Michael Gavenchak and Matthew
Coleman), did not return calls.
C&W is accusing those former firm employees of improperly
soliciting C&W accounts. Reports that mediation is taking
place could not be confirmed.
Philip Lader, outgoing U.S. Ambassador to the U.K.,
has been named non-executive chairman at WPP Group, succeeding
Hamish Maxwell. Lader was White House deputy chief of staff
for President Clinton, and deputy director of the Office
of Management and Budget before joining WPP....Edelman
PR Worldwide was named by Major League Baseball to promote
the 2001 John Hancock All-Star Fan Fest slated for July
6-10 at Seattle's SAFECO Field. Mark Sage, MLB's director
of special marketing, said Edelman's role is to create a
"baseball heaven on earth." Plans call for more
than 30 interactive exhibits, and such MLB mainstays as
the home run derby, which will be sponsored by Century 21.
QORVIS LEADS $4M ARCTIC POWER PUSH
Arctic Power has hired Qorvis Communications to promote
oil drilling in the coastal plain of the Arctic National
The pact is worth about $4 million to Qorvis, which is headed
by Michael Petruzzello, the former president of Shandwick
AP, on its website, bills itself as a "grassroots,
non-profit citizens' organization with 10,000 members."
Its board members include representatives from the Alaska
Oil & Gas Assn., Resource Development Cncl., Alaska
Miner's Assn., and Alaska Forest Assn.
AP says it has the support of Alaska Gov. Tony Knowles,
a Democrat, and the state's legislature for opening up the
Asks for 'Unprecedented Business Support'
The Wall Street Journal reported that President Bush
will ask "business for unprecedented help" in
support of his economic and energy agenda.
He presents drilling in the ANWR as a major component of
his energy program.
Environmental organizations and many Democrats bitterly
oppose drilling in the ANWR.
Qorvis, which has a staff of 25, works closely with its
legal partner, Patton Boggs.
HAD BANNER YEAR IN 2000
Independent PR firms supplying documentation to the O'Dwyer
Co. had a banner year in 2000 with 112 of 144 firms showing
double-digit growth and 18 of the top 25 showing increases
The 144 firms participating in the O'Dwyer rankings, which
require proofs that include a W-3 statement of total payroll,
copy of the top page of the latest income tax return, and
CPA verification of total employees, is a gain from the
130 firms ranked last year.
See table of 144 independents on page 7.
Nine of the ten biggest firms had gains of more than 25%,
with the largest gain (108%) recorded by the PR 21 unit
of Edelman PR Worldwide.
The parent company, the No. 1 independent by a large margin,
had a 25.5% growth to $233.4 million.
Ruder Finn, No. 2, had a 41.6% increase to $84.1M.
Other leading gainers in the top ten were MWW Group, up
39.7% to $37.7M; Schwartz Comms., up 57.7% to $33.1M; FitzGerald
Comms., up 59.7% to $21.4M; Chandler Chicco, up 24% to $14.4M,
and Neale-May & Partners, up 67% to $14M.
on page 6)
Edition, March 7, 2001, Page 2
MANY COS. DISCLOSE LESS INFO.
Almost one out of four companies is providing less information
to investors than it did before the Securities and Exchange
Commission passed Regulation Fair Disclosure.
In a recent survey on the impact of the new rule on corporate
disclosure practices, the National Investor Relations Institute
found 28% of 577 member companies surveyed by Rivel Research
say they are providing more information to investors than
before the new rule went into effect last October, and 48%
are issuing about the same amount.
"We are concerned that 24% say they are providing less
information," said NIRI president/CEO Louis M. Thompson
"Our survey suggests Regulation FD is largely working
as the SEC envisioned to provide more equal access to information,"
said Thompson, who noted that prior to the adoption of the
disclosure rule, 60% of NIRI's members were providing full
public access to their conference calls to discuss quarterly
earnings results and guidance.
Today, 89% are doing so-mostly through webcasts, one percent
is conducting calls restricted to analysts and major investors
and 10% don't hold conference calls since there is no requirement
to do so," said Thompson.
Other Findings Cited
-84% of companies are notifying investors and the media
of their upcoming conference calls in a news release.
-75% post a notice on their companies' website.
-55% are using "push technology" whereby interested
investors who want an e-mail alert are notified directly.
-Of those companies that provide quarterly earnings guidance,
67% are putting it in a news release and 33% are filing
it with SEC.
-75% of companies are providing some form of earnings guidance
and 56% are updating their guidance in a news release, should
material facts or circumstances change during the quarter.
-74% of companies are still conducting the same number of
one-on-one meetings with analysts.
McCURRY: GOVT'S PR SYSTEM IS BROKEN
Former White House press secretary Mike McCurry said the
"political information system" of the nation needs
to be fixed.
McCurry, who was former President Clinton's spokesman from
1995 to 1998, spoke Feb. 23 at the University of Delaware.
His remarks were reported by The Wilmington News Journal.
McCurry said political dialog in the U.S. began to break
down after the end of the Cold War and the rise of the information
The fight against communism often led Democrats and Republicans
to unite on foreign policy objectives. "But since 1989...the
climate in Washington, D.C., has gotten worse and worse
because there is nothing to bring us together," he
People are "swarmed by information" and, as a
result, tend to run away unless they are stung by a certain
story, "like O.J. Simpson...Princess Di... Monica Lewinsky...chads,"
He believes networks and newspapers were doing this because
it is more cost effective to add more resources to the story
of the moment than to invest in a new story.
The "political ruling class and the media ruling class
haven't forged out a way to work collaboratively,"
said McCurry, who said there is reason to hope.
He believes right now is a moment between eras and he sees
many young people who are ready to take up the challenge
of public service.
He also believes the media system realizes there is a problem
and is attempting to fix itself.
VETERAN PR PRO, DIES
Jeanne Pennie, whose PR career spanned more than 40 years,
died Feb. 21 in New York. Burial took place in Chicago on
Pennie had been a senior VPt/group director at Creamer Dickson
Basford, where she worked from June 1978 to May 1998.
Mitch Kozikowski, former chairman of CDB (now Magnet Communications),
said "Jeanne always steered everyone around her to
be their best. She will be missed." Kathleen Nolan,
a colleague of Pennie at CDB, remembered "Jeanne as
both a friend and mentor, not just to me but to so many
young people in the early stages of PR careers."
Among her clients at CDB were Hershey Foods, Dannon Yogurt,
McDonald's Operators, Nestle Foods, and Frozen Food Institute.
She is survived by her husband, Martin Goldstein.
G-P SEEKS INVESTORS THROUGH ADS
Georgia-Pacific, the $1.3 billion forest products company
based in Atlanta, is buying full page ads in national business
publications to sell itself as a consumer products company
After more than 70 years of producing pulp, lumber and other
commodities, the company will put a focus on promoting products
sold in supermarkets and outlets such as Wal-Mart and K-Mart.
G-P recently acquired Fort James, the maker of Brawny paper
towels, Quilted Northern toilet tissue and Dixie cups. The
deal made G-P the largest maker of tissue products in the
world, topping Kimberly-Clark.
The ads, which started running Feb. 28 in The Wall Street
Journal and Investor's Business Daily, show three
identical businessmen "planted" knee-deep in the
ground in front of a tree.
"All those forest products companies that think progress
is a good thing, please step forward," reads the headline.
The ad implies only G-P is moving away from the pack.
Richard Good, director of IR, sees the ad campaign as a
way to attract a different set of investors.
Edition, March 7, 2001, Page 3
MAKES PITCH FOR FOREIGN NEWS
Former President Bill Clinton said the media should pay
more attention to foreign affairs in a speech he delivered
Feb. 27 at Variety's conference for media and entertainment
The speech stirred up controversy even before it was given,
owing to Clinton's $100,000 speaking fee and reluctance
of some corporate executives to pay such fees while Clinton
faces possible criminal investigation.
The Boston Globe said the conference's main sponsor,
Credit Suisse-First Boston, took its name off all the publicity
materials and corporate logos surrounding the event, which
was held in a New York midtown hotel.
Cameras and tape recorders were barred from the ballroom.
Clinton, who wondered whether TV networks can make public
service profitable, noted there were 24,528 stories about
the TV show "Who Wants to Be a Millionaire," but
only 8,365 on his initiative to reduce global debt.
He praised a few news stories that have shown it is possible
to solve global problems such as an article in The New
York Times Magazine, about how Brazil has nearly wiped
"We are at the dawn of a whole new era of human affairs,"
said Clinton, citing benefits of combining democracy, human
rights, and the global economy.
"I am absolutely convinced it will not happen unless
the American people know more, care more and understand
more about how it will affect their lives," he said.
TV NEWS VIEWERS DISTRUSTFUL
A new survey from a Columbus, Oh.-based research firm found
54.8% of 9,079 respondents disagreed or strongly disagreed
that the reporting of news is objective.
Bigresearch on Public Policy and Media Influence's survey
also found 50.8% of respondents chose TV as their primary
source of news, with 19.5% selecting online as their authoritative
source of news, and 17.3% selecting newspapers.
When asked what media influences their political opinion
the most, 48.2% said TV, with 17.5% and 12.3% indicating
newspaper and online, respectively.
"It appears that people have become cynical of media
news, but are still willing to engage in the parasocial
activity of inviting the market researcher anchor into the
home as a guest, regardless of their ambivalence toward
the reporting," said Joe Pilotta, VP of research for
NEWS TRAINING OFFERED
A training program to improve the media's coverage of the
environment has been established by the Washington, D.C.-based
National Safety Council's Environmental Health Center, and
The Conservation Fund, a nonprofit group that does leadership
develop<%-2>ment as well as land acquisition.
The hope is to conduct actual training programs as early
as the fall of 2001 or spring of 2002.
"This training will empower print and broadcast journalists
to better understand complex data and trends underlying
these issues," the groups said in a prospectus on the
A journalism advisory committee has been appointed. It includes
Allen Carroll, chief cartographer of National Geographic
Maps; Jim Detjen, director of the Knight Center for Environmental
Journalism at Michigan State University; Paul Dolan, executive
director, Cable and International Business Development,
with ABC News in New York; Tony Lugo Jr., cartographic editor
for The Associated Press and manager of AP's MapShop map
service; Scott Miller, environmental reporter for King 5
News, Seattle; Kathryn Phillips, a freelance journalist,
and Bruno Tedeschi, bureau chief of The Bergen Record,
N.Y. NEWS NAMES EDITORIAL PAGE ED.
Richard Schwartz, 42, was named editorial page editor of
The New York Daily News.
Schwartz was a senior advisor to Mayor Rudy Giuliani from
1994 through 1997, and helped create and implement the city's
welfare reform program.
After leaving City Hall, Schwartz founded Opportunity America,
a firm that provides training and job placements for people
Schwartz, who takes over March 26, will replace Brian Kates,
who was interim editor. Kates will join the paper's enterprise
Howard Kissel has resumed his role as principal drama critic
at the Daily News. Kissel, who was previously the daily's
drama critic from 1986 to 1997, will also continue to write
on the arts for the daily and Sunday News.
Bill Hamilton, 50, was promoted to assistant managing
editor of enterprise at The Washington Post. He will
focus on financial and national reporting.
Kevin Merida, 44, a columnist and "Style"
section writer, was elevated to associate editor. He will
continue to write stories for Style and other sections of
the paper as well as a biweekly column in the Sunday magazine.
Jane Healy, who has been The Orlando Sentinel's
managing editor for the past eight years, was named editorial
page editor, replacing Manning Pynn, who was named
Kim Marcum, formerly features editor of The Baltimore
Sun, is joining the Sentinel as associate editor for
features, including entertainment and lifestyle coverage,
replacing Steve Doyle.
Gail Rayos, now Orange County editor, was named associate
managing editor for business news.
news continued on next page)
Edition, March 7, 2001, Page 4
MAG TO PROFILE AWARD WINNERS
Winners of the 2001 CFO Excellence Awards, which are sponsored
by CFO Publishing Corp., Boston, and Arthur Andersen, will
be profiled and "prominently featured" in the
October issue of CFO magazine, according to Alexandra
Ballantine, who is director of operations for the competition.
Past winners include Judy Lewent of Merck, Joseph Martin
of Fairchild Semiconductor International, Jeffrey Henley
of Oracle, Chris Davis of Gulfstream Aerospace, Dennis Dammerman
of General Electric, and Andrew Fastow of Enron.
The eligibility rules for the awards program have been expanded
and 10 new categories have been added. CFOs of public and
private companies with annual revenues of $300 million and
above are now eligible to enter the contest.
Julia Homer, editor-in-chief of CFO magazine, which
is part of The Economist Group, will chair the judging panel,
which will consist of experts, including CEOs.
Nomination forms are available in the February and March
issue of CFO magazine and on www.cfoexcellence.com.
Applications are due on April 30.
Publicists may get additional information about the contest
by calling Ballantine at 845/279-5808.
CNN has named Kathy Slobogin to its newly expanded
beats focusing on medical, education, family and religious
issues. She is based in Washington, D.C.
Oxygen Media's "SheCommerce," a TV show
that airs daily, has started taping on the third floor of
New York's Saks Fifth Avenue store. It had been taped at
the Starbucks on Park ave. and 29th st.
The show's hosts-Wendy Shanker, Letica Castillo and Janine
Marino-interview fashion personalities and discuss what's
new in the world of online shopping, fashion and commerce.
SheCommerce will be taped at Saks every Friday, with new
episodes scheduled to make their debut during the first
week in April.
Gourmet magazine has added a new food
feature, called "Gourmet Every Day." The goal
is to show readers how to get a dinner on the table in 15
minutes using the same kind of cooking equipment the reader
has. Ruth Cousineau is food editor.
The Atlanta Journal-Constitution has introduced
a small business feature, written by Christine Van Dusen.
It will report on the personalities behind new start-up
ventures in the Atlanta area. "Business on a Small
Scale" will appear in the "Business News"
section every other Tuesday. The companies will be at least
a year old.
Victoria's March issue, which just
hit newsstands, has increased coverage of fashion, travel
and beauty. Peggy Kennedy, who was hired as editor-in-chief
last August after 19 years at House Beautiful, another
Hearst magazine, is responsible for the new look of the
14-year-old publication, which has a higher circulation
(950,000) than Architectural Digest, House &
Garden or House Beautiful.
Thomson Corp., Toronto, is selling the Bond Buyer
and American Banker, which are both based in
New York, to focus on delivering financial information electronically
American Banker's circulation is 14,500 Monday-Friday,
and Bond Buyer has 40,000 readers daily, the company said.
The Industry Standard, a magazine that
covers the Internet economy, has filed 20 lawsuits seeking
to collect more than $1.5 million for nearly 100 unpaid
ads that were mostly bought by former dot-com companies.
The suits, which were filed in San Francisco Superior Court,
show most of the ads were worth more than $10,000 and many
took up a full page, according to The San Francisco Chronicle.
The magazine also contends it is owed for several unpaid
banner ads on its website. Most of the suits allege breach
Walt Disney Co. has been given a 50% stake in
US Weekly, a magazine published by Rolling Stone
publisher Jann Wenner's Wenner Media. The new company, called
US Weekly LLC, aims to merge the content from Disney's entertainment
and media holdings-including the ABC TV network-with US
US Weekly will have several tie-ins to ABC broadcast
and online activities. ABC will develop annual US Weekly
entertainment awares, include a segment featuring a US Weekly
reporter on ABC's morning program "Good Morning America,"
and ABC-owned TV stations will include segments from US
Weekly in their news programs.
US Weekly, which began as a bimonthly publication
in 1977 and was acquired by Wenner Media in 1986, will continue
to be based in New York.
The Associated Press has begun new entertainment
and Spanish-language news services on the Internet.
AP Entertainment Online will offer news and photo coverage
of film, music, celebrities, TV, the entertainment industry
and special events. AP also has teamed with Fashion Wire
Daily to offer the latest news from the fashion world.
AP Online en Espanol will provide coverage of the U.S.,
Latin America and the world. The service features breaking
news, as well as stories of special interest to Spanish-speaking
Both services are available in web-ready formats via the
Edition, March 7, 2001, Page 7
Edition, March 7, 2001, Page 8
143 independent PR firms ranked on page 7 represent an increase
from the 130 ranked in the previous year.
The independents, unlike the ad agency owned PR wings, have
no trouble submitting simple documentation of their size
such as a W-3 form showing total payroll, top page of the
most recent income tax return, and total full-time employees
as verified by an outside CPA.
This NL told a group of about 50 independent PR counselors
in New York last week (The Wednesday Group) that they have
a good story to tell even though they can't match the millions
in advertising being spent by the ad agency-owned PR operations.
With a small or medium-sized independent firm, the client
deals with the principal or principals. The work is not
shifted down to juniors.
The independents are under no lash by a parent company to
make sizable profits or grow at a rapid rate. They are under
no pressure to recommend services of sister companies. They
can give advice without worrying whether it might jeopardize
a major ad client of the parent.
They have expense accounts that allow them to build press
relationships. Some of them spend most of their time with
the press. They see themselves as "story brokers,"
taking on clients who have a story to tell and who will
make themselves available to the press. They know that nothing
can substitute for a CEO who is open and articulate.
The independents are under no pressure to sell expensive
and time-consuming research programs to clients. They know
the average company already has lots of research on hand.
Trade and general media, if the PR pro is on good terms
with them, can supply plenty of research on almost any company
or issue quickly and at no cost (that's their business).
A practiced writer familiar with what the press wants can
interview a CEO and find numerous possible stories in short
order without drawing up elaborate D-Day level plans. He
or she knows there is no need for the client to undergo
psychoanalysis in order for stories to be produced.
The O'Dwyer website now lists biographies of leading independent
PR counselors along with their e-mail addresses. Clients
should talk to independents as well as big firms before
making a choice.
Interpublic net for 2000 fell from $382M, or $1.24 a
share, to $358M, or $1.15 a share. Fourth quarter net
was 34 cents a share vs. 36 cents. That's what the financial
tables show on the last page of a six-page report. The press
release started out with IPG announcing a 31% gain in fourth
quarter EPS "before acquisition costs." No balance
sheet was provided which makes the earnings report woefully
incomplete because investors are not told the debt situation,
receivables, payables, etc. The stock fell several points
last week mostly on fears that ad budgets for 2001 are shrinking,
as acknowledged by IPG. Credit Suisse First Boston upgraded
IPG to buy from hold while Salomon downgraded it to outperform
from buy...here's Gore Vidal's advice to George Bush:
"Use your first term to break the Pentagon." Vidal
feels that the U.S. has become the "largest rogue state"
in that we spurn international courts, give orders to the
U.N. but fail to pay our dues, and that "our Congress
has been hijacked by corporate America and its enforcer,
the imperial military machine...our institutions taken over
in a globalized American empire that is totally alien in
concept to anything our founders had in mind" (from
the December Vanity Fair)...IABC, undergoing financial
rehab, has received pledges of $1,000 from 188 members so
far (goal is 500). The group hopes for 2,000 attendees
at its annual conference in New York June 24-27 (www.iabc.com).
That is very close to the July 4 vacation period and people
may be already away or making plans. The eight-member executive
committee of the board cancelled a meeting in Sydney, Australia
in April but chairman Charles Pizzo will make the trip on
IABC's tab, visiting several chapters. Another board member
is going at his own expense...an "instant poll"
on the O'Dwyer website has 58 votes in favor of an IABC/PRSA
merger and 31 against it...members of the new and much
needed PRSA audit committee are PRSA treasurer Reed
Byrum, chair; board members Michael Jackson and Del Galloway,
and non-board members Bob Stack and Michael McDermott...while
PRSA is having its financial problems, the New York chapter
is financially healthy with $138K in cash and investments.
It does not defer any of its $57K in dues income although
national has just adopted that policy after fighting it
for many years. The chapter had $290K in income and $281K
in expenses in 2000. There's little sentiment among current
chapter leadership for fighting for decoupling APR from
office-holding. The feeling is the all-APR Assembly won't
vote themselves out of power. Chapter growth is impeded
by the $215 in dues owed to national. Some chapters have
"shadow chapters" in which non-national members
belong to the local only.