Edition, May 30, 2001, Page 1
IS OUT IN 'SHOCKER AT MAGNET
Dave Kratz, 43, has been named CEO of Magnet Communications
succeeding Darryl Salerno, 48, who held the post since Magnet's
formation a year ago.
He reports to Patrick Lemarchand, CEO of Havas Advertising's
Diversified Agencies Group.
Salerno's ouster "came as a complete shock to the entire
staff," one Magnet executive told this NL.
Kratz, who had headed Magnet's PR division, is "not
doing interviews at this time," said Sandra Sokoloff,
a spokesperson for the firm. The firm released a statement
from Kratz, a lawyer, in which he said he planned to build
upon Magnet's strong foundation of talent, resources and
clients to propel the agency to the next level. There was
no mention of Salerno.
The new Magnet CEO founded Kratz & Co. in 1984. It was
renamed Kratz & Jensen in 1997.
Magnet was formed via the merger of K&J, Creamer Dickson
Basford, Capstone Comms. and ACG Comms. It has 200 staffers
and eight offices.
Lemarchand, in a statement, praised Salerno as being "instrumental
in the creation of Magnet."
ACQUIRES SPRINGBOK, 65 STAFFERS
Cohn & Wolfe has acquired Springbok Technologies, which
is Texas leading high-tech firm with fees in the $10 million
range, according to Steve Aiello, C&W s CEO.
Glenn Abel, Springbok s CEO, is a former journalist who
counts media relations as an important ingredient to PR.
Aiello said he met Abel about a year ago, and was impressed
with his creativity and solid reputation in the tech arena.
Joe Lockhart, President Clinton's press secretary,
has resigned his post as PR advisor to Oracle CEO Larry
Ellison. He joined Oracle last November... Ann Wool,
EVP in Edelman PR Worldwide s sports unit, is now responsible
for building the Ketchum Sports Network. Her father, Michael
Morley, is Edelman s deputy chairman/int'l pperations...
John Gibbons, a former press secretary at the Dept.
of Health and Human Services and SVP at Powell Tate, is
now Burson-Marsteller s healthcare market leader in Washington,
D.C... Fred Du Val is leaving Hill and Knowlton/D.C.,
to return to Arizona to run for Congress. He also has set
up Du Val & Assocs., a PA firm... Edward von Kloberg,
the legendary counselor to foreign governments, is honored
as a Rwandan Lion by King Kigeli V on May 30.
TRAVELS TO SPRING, O BRIEN
The American Society of Travel Agents has awarded its six-figure
PR account to Spring, O Brien, New York, according to Chris
KWE Assocs. had the business for about three years, said
Victoria Feldman, president of KWE.
Martin PR, which is now Slay PR, also pitched. Spring said
a key message for ASTA will be pushing for passage of the
Air Travelers Bill of Rights.
has had an advertising relationship with ASTA.
David Kleinman will oversee the ASTA biz.
AVOIDS TOPIC OF DEBT AT MEETING
executives painted a rosy picture of the ad conglomerate's
finances at an annual meeting that lasted 15 minutes May
21 but wouldn't discuss debt.
and CEO John Wren said 2000 was "a great year, a record-breaking
year," and that 2001 would be another year of record
growth. He pointed out that OMC scores high in the "most
admired" rankings published by Fortune magazine.
Randall Weisenburger said 2000 was the 13th straight year
of revenue and profit growth and that PR accounts for about
15% of revenues while ads account for 44%. PR has been growing
faster than ads. (24.6% vs. 13.5%).
O'Dwyer, editor of this NL and an OMC stockholder (forced
to buy stock in order to attend an OMC meeting several years
ago), asked why Wren and Weisenburger only mentioned revenues
and profits and not debt.
longterm debt as of March 31 was $1.05 billion vs. $263
million at the end of 1999. In addition, its convertible
deventures soared to $1.07B from $229M at the end of 2000
for a total debt of at least $2.27B (including $143M in
bank loans). O'Dwyer said that while revenues went to $6.1B
in 2000 from $5.1B the year before, debt appears to have
increased at least $1.5B.
Floats 'LYONSs' Form of Debt
also asked for an explanation of $850M in "Liquid Yield
Option Notes" that were offered in February by OMC
(netting $830M). Neither Wren, Crawford nor Weisenburger
answered the question.
broker told this NL that LYONs are a type of zero-interest
convertible bond created by Merrill Lynch. "It's a
cheap way to borrow money but can be costly if the stock
dips," the broker said. Conversion of the debt into
stock dilutes the stock.
on page 7)
Edition, May 30, 2001, Page 2
FOUNDATIONS MAKE NEWS
Private foundations are using their tax-sheltered billions
to get selected messages in strategic places, most notably
in news stories, according to a study conducted by the Poynter
Institute, St. Petersburg, Fla.
Rick Edmonds, who helped conduct the study, said several
financially strapped magazines have "doubled their
editorial budgets and mortgaged a year's worth of cover
stories in striking a deal to publish a foundation-underwritten
Edmonds said the Henry J. Kaiser Family Foundation of Menlo
Park, Calif., and the Pew Charitable Trusts of Philadelphia,
and other foundations have been able in recent years to
establish a "significant beachhead" in serious
journalism and in some unexpected places such as Glamour
magazine and on MTV, which have been all but unnoticed.
The Foundation Center estimates total grants for film, communications,
and media at almost $400 million for the most recent year
The Kaiser Foundation has embarked on a program that has
"spun a whole web of relationship with media,"
according to Edmonds.
Under the leadership of Harvard professor Hale Champion,
the Kaiser board decided to narrow its focus radically to
health communications, specifically to providing information
that would help shape health policy, he said.
have given way to 'collaborator' in the Kaiser lexicon--and
some of those collaborators at any given time are working
news people," according to Edmonds.
At the high volume end of Kaiser programs is the double-barreled
relationship with "ER," the nation' s top-rated
"One of the show's chief writers, Neal Baer, a physician
and public health policy buff, has been consulting with
Kaiser since early in the show's run to beef up the verisimilitude
of ER scripts with timely references to new medical findings
or healthcare issues of the day," said Edmonds.
a more modest scale, Kaiser offers "mini-fellowships"
for health reporting. The grants--typically $5,000 for newspapers
and $10,000 for broadcast--are for a specific reporter to
develop an agreed upon topic, usually for his or her regular
CORP. PR PROS SHOULD HAVE MORE SAY
Alan Towers, president of TowersGroup, a New York-based
PR firm, said corporate PR people have all the responsibility
for protecting their company's reputation but little influence
over the policies and behavior that create reputation.
In a speech at the Conference Board s 2001 Corporate Communications
Conference that was held May 22 in New York, Towers said
PR pros have to win back the job of reputation management
from the branding and identity firms "that have taken
over our turf because they re seen as more
"If we want to restrict ourselves to being communicators,
we don t need a role in shaping corporate behavior. But
if we want to manage reputation, we have to influence what
companies do, not just what they say," said Towers.
NAVY CARRIER IS USED FOR MOVIE EVENT
Disney premiered its new movie, "Pearl Harbor,"
aboard the nuclear-powered carrier, USS John C. Stennis.
Most of the $5 million premier party was paid for by Disney,
but the carrier was provided at the Navy's expense.
More than 2,000 people attended the May 21 gala on the 1,092-foot
flight deck, where a grandstand was erected in front of
a giant open-air theater for the premier-showing of the
epic movie, which tells the story of the surprise Japanese
attack on Pearl Harbor through the lives of two U.S. fighter
The carrier, which was moored near the underwater graves
of the battle it recalls, sailed into Pearl Harbor after
a six-day trip from San Diego.
The New York Times said the cost of keeping an aircraft
carrier at sea runs about half a million dollars a day.
Although the armed services have a long history of helping
Hollywood make films and TV programs the Pentagon deems
beneficial to its image, the Navy has stopped inviting civilians
to come aboard its vessels since the sinking last February
of a Japanese fishing boat by the USS Greenville.
Pentagon officials believe the news coverage of the Stennis
and the week of events around the premier will be beneficial
for the Navy. That kind of publicity is good for morale
and recruiting, the Navy contends.
SPACE STUNT GETS NEWS COVERAGE
Pizza Hut recently served "oven-fresh" pizza to
the Russian cosmonauts on board the International Space
Station as a publicity stunt.
The six-inch pizza was vacuum-sealed and sent to space in
March aboard a Russian rocket assigned to resupply the space
A tape showing Yuri Usachov, commander of the station, eating
the pizza, was shipped back to earth by rocket and delivered
to news outlets by Pizza Hut s PR representatives.
The company reportedly paid about $1 million for the stunt
and to emblazon a 30-foot tall Pizza Hut logo on a Russion
proton rocket in July 2000.
SPONSORS PR PUBLICATION
Hill and Knowlton is the sponsor of the spring edition of
the Journal of Integrated Communications, which is
published by the integrated marketing communications graduate
program at Northwestern Univ. s Medill school of journalism.
The special issue, which celebrates the Journal s 10th year
of publication, is entitled "Defining IMC: Voices In
Edition, May 30, 2001, Page 3
TIMES NAMES NEW EXEC. EDITOR
Howell Raines, who is editorial page editor of The New
York Times, will become executive editor in September.
58, succeeds Joseph Lelyveld, 64, who will step down after
seven years as executive editor, a period in which the paper
has won 12 Pulitzer Prizes, introduced run-of-press color
to its pages, added new sections, and expanded its national
Lelyveld is seven months shy of the Times mandatory retirement
age for top executives.
A replacement for Raines, who oversees the op-ed page and
letters to the editor, was not named.
Arthur Sulzberger Jr., publisher of the Times, said Bill
Keller, who has been managing editor, the second-ranking
newsroom executive, had been a candidate to succeed Lelyveld.
He said Keller will continue as managing editor until September
when he will get a new position in the company.
WALD NAMED EXEC. PRODUCER OF 'TODAY'
Jonathan Wald was named executive producer of NBC's "Today"
show, replacing Jeff Zucker, who left to become president
of NBC Entertainment.
Wald, who has been executive producer for "NBC Nightly
News" since August, started his new job on May 21.
He sees no problem in bringing his hard news background
to "Today's" magazine-style format.
The first hour of the show, which has expanded to three
hours, will be as hard as any news show on TV, said Wald.
Capus, the executive producer of MSNBC's "The News
With Brian Williams," has replaced Wald at "Nightly
News," and David Corvo is the new executive producer
of "Dateline NBC."
The San Francisco Chronicle has named five
Narda Zacchino, 54, was named senior editor after more than
30 years as a reporter and editor at The Los Angeles
Andrew Ross, 55, the co-founder of Salon.com and its first
managing editor, was named associate editor of content.
Ken Altine, 39, will become editor of The Sunday Chronicle.
He had been a consultant for the paper the past six months
and was interim business editor.
Mi-Ai Parrish, 30, who was previously Sunday editor of The
Arizona Republic before becoming deputy managing editor
for features, was named associate editor of the Sunday Chronicle.
Howe, 50, was named business editor. He has been a business
reporter at the paper for 14 years.
Sharon Crenson, a reporter for The Associated Press,
in New York, was appointed a national writer for investigations.
DENVER DAILY DEBUTS
The Denver Daily News has begun publishing as a free
Mike Kirschbaum is publisher and editor of the new paper,
which has three employees working out of an office near
The other two dailies - The Denver Post and Rocky
Mountain News - formed a joint operating agency in January.
They began a new publishing schedule on April 7: The News
publishes alone on Saturdays and the Post publishes alone
PLACEMENT TIPS __________________
Healthy Traveler, which is a column in National
Geographic Traveler magazine, will be published as a
The first issue will be polybagged with all 715,000 newsstand
and subscription copies of NG Traveler s Jan./Feb. number.
The supplement will cover health concerns and offer safety
tips for readers traveling abroad.
Keith Bellows, editor, is spearheading the new publication.
He is based in Washington, D.C.
Most of the editorial content will be produced by freelancers.
George Stone will continue to write the Healthy Traveler
HT will be published with a single sponsor. United Healthcare
is sponsoring the first issue. The insurance company s medical-research
team will serve as the publication s advisory board.
Jeff Greenfield will host a new TV talk show on CNN,
called "Greenfield at Large," in which he will
talk with people from all walks of life musicians, business
people, atheletes, teachers, etc.
about a range of issues from politics to culture.
The new show, which is scheduled to start June 4 in the
10:30 p.m. slot, will replace "The Spin Room,"
a half-hour political show featuring liberal Bill Press
and conservative Tucker Carlson,
who will continue to appear on "Crossfire" and
Sree Sreenivasan wants to get information about computers
and new high-tech gadgets for his weekly segment on "Eyewitness
News This Morning," which airs on WABC s Channel 7
in New York.
who is an associate professor at Columbia Univ.'s graduate
school of journalism, shares his insights on what is the
best and what is best left on the shelf every Thursday.
He also writes about high tech for several publications,
including Times Digital, The New York Times, Business
Week, and India Today.
He can be contacted by e-mail at [email protected].
news continued on next page)
Edition, May 30, 2001, Page 4
PRESIDENT BACKS REGULATION FD
Bill Barnhart, financial columnist for The Chicago Tribune,
is opposed to any watering- down or repeal of Regulation
"Regulation FD is the investor's friend," said
Barnhart, who was just elected president of the 3,300-member
Society of American Business Editors and Writers.
Barnhart said the rule, which was implemented last fall,
has "sparked a boom" in publicly accessible conference
calls, which formerly were closed to average investors,
and it has forced professional stock analysts to conduct
"genuine research instead of sitting like lap dogs
at the feet of companies."
He opposes a view expressed by James Glassman of the American
Enterprise Institute, who testified on May 17 at a House
Glassman, a former business writer for The Washington
Post, said, "Since the regulation was enacted,
the volatility of markets has increased making them scarier
places for the public and increasing the cost of capital
Barnhart said no evidence supports this view. "Volatility
in the stock market has declined dramatically since March,
as represented by intraday and daily price movements and
share volume," said Barnhart, who noted the Nasdaq
volatility index hit a 52-week low on May 17 at the Chicago
Board Options Exchange.
Barnhart said the "substantial April/May rally, which
has put the Dow just 500 points from its all-time high,
has occurred in the midst of proliferating public conference
calls and other Reg FD- inspired company communications
Tom Gardner, co-founder of The Motley Fool investor service
and a pro-investor witness at the hearing, asked: "If
a company releases bad news simultaneously to everyone and
its stock falls from $30 to $25, is this any more volatile
than if the company had selectively released information
to professionals on Wall Street, who dropped the stock from
$30 to $27, and then released the information to the public,
who sold it down to $25?"
LETS DOBBS ACCEPT SPEECH GIGS
Lou Dobbs, who recently returned as the anchor of CNN s
"Moneyline," will be allowed by CNN to give paid
speeches to groups.
Although CNN has a rule that says news people cannot make
paid speeches if they are "funded by an association
or group you report on," a CNN spokeswoman said an
exception has been made for Dobbs because he made the speaking
commitments prior to his return to CNN.
Dobbs spoke at a gathering last week of top Ford Motor executives
and dealers at Amelia Island, Fla. It was reported he got
at least the $30,000 fee offered to other speakers.
Dobbs said he will donate all of his speaking fees to charity.
He was reprimanded by CNN in 1992 for making promotional
videos for three Wall Street firms, and he agreed to return
the more than $150,000 he got for the outside work.
REPORTER AND PAPER SETTLE CHARGES
The San Jose Mercury News and Chris Nolan, a business
reporter who was demoted after trading in a Silicon Valley
company, have settled charges she brought against the paper.
Terms of the settlement, reached May 11, were not disclosed.
Nolan, who had filed labor grievance and sex discrimination
charges, eventually left the Mercury News for The New
York Post, where she now has a Silicon Valley column.
In 1999, Nolan bought 500 shares of Autoweb.com at the initial
offering price under a "friends and family" allotment
not available to the public. Nolan, a friend of the company
s CEO, eventually sold her shares and made about $9,000.
Nolan said she told editors about the deal before and after
she sold the stock, and no one disapproved. After The
Wall Street Journal reported on the trade, Nolan was
accused of violating the paper s ethics policy, which prohits
business reporters from investing in local companies.
Business Week and Golf Digest editors wll co-produce
a series of editorial supplements for distribution to upper
income subscribers of both magazines.
The first project in the "Golf & The Good Life"
series will be "A Financial Guide to Buying Your Dream
The supplement will run in the Nov. 19th issue of BW and
December issue of GD with a combined print circulation of
CNBC has expanded "Business Center" to two
hours. The show, which averages 320,000 viewers a night,
has moved its starting time up 30 minutes and airs from
6 p.m. to 8 p.m. (EDT) on weeknights.
"Moneyline," which averages 258,000 viewers, is
on from 6:30 p.m. to 7:30 p.m.
BOSTON GLOBE CLOSES BUREAU/SECTION
The Boston Globe is closing its Manchester, N.H.,
bureau and halting publication of its Sunday New Hampshire
The last issue of the weekly section will be published June
Beginning July 1, the Globe will provide expanded versions
of its North Weekly and North West Weekly sections with
at least a page devoted to New Hampshire news.
The Globe is owned by The New York Times Co.
Edition, May 30, 2001, Page 7
AVOIDS DEBT TOPIC
(cont d from p. 1)
The OMC LYONS are convertible at $110 a share (OMC is now
around $94), after Feb. 7, 2002.
Companies resort to such bonds when other forms of borrowing
may be closed to them or are too expensive. Fears of a recession
have made some lenders cautious. Media researcher Jack Myers
has forecast a tiny 0.2% growth in ad spending for 2002.
Instead of paying about $60M a year in interest on $850M
in debt, OMC pays nothing, thus conserving its cash. But
OMC can deduct the "imputed" $60M in interest
from its earnings each year, thus saving about $24M (since
its tax rate is 40%).
A recent column in the New York Times by Floyd Norris
said that by "carefully manipulating" the terms
of zero-interest bonds, some companies may not have to include
the shares they will issue when calculating per-share earnings
even when the stock price has risen past the conversion
Norris quoted Jonathan Glaser of JMG Capital Partners as
saying that if the stock of a zero-bond should fall, "potentially
it's a death spiral." A company might have to borrow
again just when its finances are most troubled, he told
Rise to $2.9B
OMC's "intangibles" have also soared in recent
years, because of its numerous acquisitions, and represent
a drain on net because they have to be deducted from earnings
at the rate of 2.5% each year with no deduction from taxes.
Intangibles, representing the amount paid for acquisitions
over book value, rose from $1 billion in 1996 to $2.9B as
of March 31. OMC amortized $58.3M in intangibles in 2000.
The size of the intangibles means that OMC had a negative
tangible net equity of $1.4B on March 31.
Sales Top Purchases
O'Dwyer also asked why, if the future is so rosy for OMC,
insiders have sold, or offered for sale, about $26M in OMC
stock but have purchased only $1.6M since Jan. 1, 2001.
From September 1999 to August 2000 OMC insiders sold $47.9M
of OMC stock while buying only $4.7M, a ten-to-one ratio
of sales to purchases. The question was not answered.
Wren, in reply to another O'Dwyer question, said OMC has
not to his knowledge been made part of the lawsuits that
charged insiders at Razorfish.com improperly sold stock.
OMC, a major owner of Razorfish, sold about $135M of the
stock just before its price collapsed last year.
O'Dwyer told the meeting he feels OMC, Interpublic and WPP
Group are violating at least the spirit and possibly the
letter of the law of Fair Disclosure passed last October
by the SEC by not providing reporters with the same access
to executives that analysts have.
The rule was passed, said O'Dwyer, because analysts have
shown themselves to be under too much influence by the companies
they are analyzing, resulting in only one percent of their
recommendations being negative. Fortune, the New
York Times, New Yorker, USA Today and "60 Minutes
II" have all condemned the loss of independence by
the analysts, he
noted. No material facts may be given to security analysts
that are not also given to the press and public.
O'Dwyer said that OMC, by having no PR for itself, is saying
this function is not worth having while at the same time
it is trying to sell the function to companies and institutions
throughout the world. "You're saying by your actions
that the best thing to do with the press is avoid it...you're
not taking your own advice," he said.
O'Dwyer said that the annual report only states that OMC
paid $849.8M for acquisitions in 2000 but does not identify
any of them. "How do we know what you're buying, it
could be a brick factory?" said O Dwyer.
Crawford replied that OMC's acquisitions are announced throughout
the year in the trade press and are not a secret.
Wren, asked what firms OMC could buy now that there are
almost no sizable independent ad agencies or PR firms left,
said that OMC has 33 different "platforms" that
can make acquisitions in various fields.
GRABS FIVE 'BIG APPLES
Fleishman-Hillard was the big winner at PRSA/New York's
Big Apple Awards luncheon held May 22, grabbing five awards
including best of show honors.
The "Best of the Big Apples" award was for work
on behalf of the Susan G. Komen Breast Cancer Foundation.
The "Sing for a Cure" campaign used music to build
awareness of the extent of breast cancer, and encouraged
support into its treatment.
Other F-H winners were programs for Barclay's Global Investors
(marketing communications support of new products);Yahoo!
(marketing for existing technology); American Assn. of Clinical
Endocrinologists (special events or observances: more than
seven days), and AstraZeneca (interactive technology).
PRSA/NY awarded two Big Apples each to seven PR firms. They
included Burson-Marsteller, Hunter PR, Ketchum, Patrice
Tanaka & Co., PepperCom, Porter Novelli and Ruder Finn.
COLUMNIST SOLICITS PR PROPOSALS
Washington Post columnist Bob Levey has asked readers
to recommend ways in which the New Jersey Turnpike's image
can be improved.
said the superhighway, which will celebrate its 50th birthday
this November, has "PR problems that it has never even
dented, much less resolved.
"The NJT has been mocked and insulted to a fare-thee-well.
In its next 50 years of life, it needs to fight back,"
"So from the land where spin was invented, I invite
Washingtonians to help retool the NJT's image," said
Levey, who asked readers to e-mail him their PR suggestions
or fax at 202/334-5150.
Edition, May 30, 2001, Page 8
displeasure with being covered by the press reached unacceptable
with its refusal to explain the $850 million in "Liquid
Yield Option Notes" that it sold (page one).
Two of our CPA friends hadn' heard of such instruments and
neither did a PR staffer who has been at the American Institute
of CPAs five years.
Our broker knew about them and said it's a "zero-coupon
bond with a lot of moving parts."
OMC doesn' have to pay the interest on the loan immediately
but can deduct the "phantom" interest (the interest
it would have paid) from its earnings, saving on taxes.
Eventually, however, the piper must be paid, and bigtime
if the stock should drop.
OMC' refusal to explain LYONs shows the disdain it has for
the teaching/explaining function of the press.
That OMC executives should have any influence whatsoever
over tens of billions of ads placed in news gathering media
is frightening. WPP Group and Interpublic, the other two
in the "top 3 ad conglomerates," have similar
attitudes towards the press. The top nine ad agencies now
control upwards of 75% of all ads placed in the U.S. and
worldwide based on Advertising Age statistics.
conglomerates have been able to enforce rigid secrecy until
now but several things have changed.
is that the new law of the land is that reporters must get
the same information, at the same time, as analysts. We
interpret this to mean that reporters should have the same
access to top management as analysts in order to make judgments
of the personalities and character of the executives. Reporters
should also be able to pose questions on conference calls.
Based on the conference calls we've recently listened in
to, most of the analysts questions are soft balls or requests
for "earnings guidance." Reporters would ask a
completely different set of questions and would pursue answers
with much more gusto. The reporters would not be there to
sell investment banking services, as some of the analysts
A second development is that by now, there are hardly
any sizable ad agencies or PR firms left to buy (unless
the firms buy each other). John Wren, CEO of OMC, answering
this objection, says it has 33 "platforms" from
which to buy companies. The history of conglomerates is
that managing so many different types of businesses becomes
too difficult and time-consuming for even the most far-ranging
executives. A third problem is that adland is facing the
first recession in many years. An almost flat 2002 for ad
spending is being predicted. Ad stocks have been high-flyers
with price/earnings ratios of 38-40. The 500 Standard &
Poor's are down in the 20's. In any market slide, the high
P/E stocks fall the fastest and the farthest.
might ask, just what is wrong with a few ad agencies controlling
most of the ad purchases in the U.S.? For one thing,
when advertisers feel they're being treated unfairly, they
cancel their ads. Two chains have pulled ads from the New
York News after it reported that 331 of 610 supermarkets
failed cleanliness tests. What media will risk offending
conglomerates of hundreds of ad agencies? We have never
seen any general media tackle the story of the concentration
of ad buying power in a few hands.
OMC says it doesn't have PR because it can t afford it,
staff costs are kept to the bone, etc. A stockholder
at the annual meeting May 22 held up the annual report of
WPP and asked why OMC could not have put some color pictures
and art in its report as was done by WPP. Chairman Bruce
Crawford said OMC used to do that but found it cheaper to
put out a barebones report. Coffee and water was served
but, unlike last year, no pastries. An O'Dwyer reporter,
who arrived early, was just about to take a pastry from
a large tray of them when an OMC employee swooped by and
said he couldn't have one. The tray was taken to a nearby
conference room where OMC's directors met after the meeting.
The asceticism of the OMC offices is being practiced
by executives who are themselves almost unimaginably rich.
CEO John Wren's stock is worth $163 million; BBDO CEO Allen
Rosenshine's, $129M; DDB CEO Keith Reinhard's, $82M; BBDO
CFO James Cannon's, $40M, and Crawford's, $32M. In addition,
Wren, Reinhard and Rosenshine each got salaries and bonuses
in 2000 of $3M+; Thomas Harrison, CEO of Diversified Agency
Services, got $2.1M and Peter Mead, vice chairman of OMC,
got $2.1M. But OMC can't afford a PR pro, an annual report
with pictures, nor pastries for the annual meeting.
OMC's anti-press policies are especially odd since two
of its outside directors have media backgrounds. John
R. "Reg" Murphy is vice chairman of National
Geographic and was publisher of the Baltimore Sun
from 1981-92 and editor and publisher of the San Francisco
Examiner from 1975-81. Linda Johnson Rice is president
and COO, Johnson Publishing, Chicago, publishers of Ebony
and Jet and the largest black-owned publishing firm
in the U.S.