Edition, April 17, 2002, Page 1
KAPLOVE, C&W's NO. 2 EXEC,
IS 'LET GO'
Jim Kaplove, a key player
in Cohn & Wolfe's restructuring and its legal suit against
breakaway executives in Atlanta, has been 'let go,' CEO
Steve Aiello told this NL.
Aiello said it was "apparent
we had different management styles."
Aiello had dispatched
Kaplove, who was an executive VP and the CFO, to Chicago
last April to personnally notify staffers of C&W's decision
to shut down that office.
Tony DeMartino, the former
CEO of C&W/Atlanta and leader of the breakaway executives
there, made a sworn statement Jan. 10, 2001 that Kaplove
"constantly harassed me regarding our production."
C&W and DeMartino's
Titan Network settled their legal differences in May. C&W,
which was founded in Atlanta in 1970, closed the office
this past November.
ARCTIC POWER SEES CONFLICT
Qorvis Communications has lost the $4 million Arctic Power
account because of an apparent conflict with Saudi Arabia,
which hired the Patton Boggs-affiliated firm for image work
following the Sept. 11 terror attacks.
Roger Herrera, AP's spokesman, told this NL that Qorvis
"didn't tell us that they were working for the Saudis,"
he said. "That came as a nasty surprise."
He said AP was winding down its work at the PR firm, but
QC maintains that it will continue to handle projects. Herrera,
however, sees a "real potential for conflict"
between AP and Saudi Arabia.
The missions of AP and Saudi Arabia are at loggerheads.
AP wants to increase domestic oil production by drilling
in a portion of the Arctic National Wildlife Refuge in an
effort to reduce U.S. energy dependence on the politically
volatile Middle East. U.S. energy self-sufficiency is apparently
not in the best interests of the Kingdom, which is paying
QC $200,000 a month in fees to burnish its reputation as
a staunch ally.
VP-corporate comms./IR at PanAmSat, has joined Rubenstein
Assocs. to head the business/financial unit. He succeeds
Peter Rosenthal, who founded the unit during his 25-year
career at RA. Rosenthal died Sept. 10. Tagliarino also was
at Gavin Anderson, Hill and Knowlton and Edelman.
OMNICOM DROPS 'INSIDER' DIRECTORS
Omnicom-mimicking arch-rival Interpublic-is dropping seven
"insiders" from its board of directors and reducing
the size of its board to 11 from 17 members.
Keith Reinhard, chairman at DDB Worldwide, and Allen Rosenshine,
CEO of BBDO, will resign as directors at the May 21 annual
Five others are not standing for re-election. They are
Bernard Brochand of DDB; Jim Cannon, BBDO; Tom Harrison,
Diversified Agency Svcs.; Jean-Marie Dru, TBWA Worldwide,
and Michael Greenlees, OMC.
Omnicom CEO John Wren and chairman Bruce Crawford will
be the only insiders on the board. The company is nominating
Robert Clark, Harvard University Law School dean, as a board
GE HIRES EX-AIDE TO EPA'S
General Electric has
hired the firm of Michael Torpey, who was chief of staff
to then New Jersey Governor Christie Whitman, to lobby the
Environmental Protection Agency on superfund issues.
GE, on April 9, dropped
its long-standing opposition to dredging the Hudson River
to clean up the PCBs that it dumped there until they were
EPA Administrator Whitman
is reviewing GE's offer. Torpey's firm, AFT Assocs., is
in Pennington, N.J. He reports to GE's office in Albany,
NIRI'S KITTY RISES 11% TO
The National Investor Relations Institute, made up of
5,300 IR executives and staffers, reported a surplus of
$687,377 on revenues of $6,060,287 for the year ended Dec.
This boosted cash and short/long term investments 11% to
$4,622,588. Surplus in the previous year was $1,315,157
on revenues of $6,381,841.
Dues income rose to $2,107,264 from $2,085,738. Members
pay $425 yearly plus chapter dues. Chapters had revenues
of another $930,000 in 2001, up from $914,249.
PR Society of America, which has 19,000 members, had $1,274,697
in cash/investments as of Dec. 31, 2000, the latest figure
available. The Society lost $678,893 on revenues of $8,805,108
The Int'l Assn. of Business Communicators, with 13,000
members, lost $718,069 on income of $5.1M for the year ended
Sept. 30, 2001. Its CPA firm, Deloitte & Touche, did
a "review" of figures given to it by IABC and
expressed no opinion on them.
(continued on page 7)
Edition, April 17, 2002, Page 2
PURCHASING PR FIRMS BACKFIRES
Big PR firms are laying
off employees, slashing prices for the first time in five
years and chasing accounts that would have been considered
"small potatoes" during the booming `90s, according
to Suzanne Vranica in last week's Wall Street Journal.
She says the acquisition
spree of PR firms by ad agency giants appears to have backfired.
For example, Interpublic, the owner of Weber Shandwick and
Golin/Harris International, reported that PR revenues fell
25 percent to $124.8 million during the fourth- quarter
of last year. WPP Group, parent of Hill and Knowlton, Burson-Marsteller
and Cohn & Wolfe, suffered a seven percent dip in revenues.
The decline in the PR
revenues shatters the myth that PR is a recession-proof
business. That fallacy, according to Interpublic's Larry
Weber, was fueled by PR's rapid growth in the `90s, and
its ability to prosper during the ad downturn earlier in
in Fashion, Consolidation Feared
Porter Novelli's Helen
Ostrowski said the big guys are hustling after $500K accounts
in a "really competitive way." She heads the Americas
region at that Omnicom unit. PN's revenues dropped 13 percent
last year. It had two rounds of layoffs.
Edelman PR Worldwide's
Richard Edelman considers price cutting a key weapon in
the cutthroat pursuit of business. His shop had to cut its
bid 14 percent to win a $400K piece of business from Brazil's
national oil company, in a pitch against H&K. He expects
a "modest profit" from the business.
The biggest fear facing
PR, wrote Vranica, is that multinational clients will follow
the lead of IBM, which consolidated its $40 million account
from 50 to three shops last year. German software maker
SAP trimmed its PR roster from a dozen firms to Burson-Marsteller.
OGILVY PICKS UP VIRGIN ATLANTIC
Virgin Atlantic Airways has hired Ogilvy PR Worldwide
to handle its "Virgin Across America" tour, Wendy
Buck, PR manager of the British carrier, told this NL.
VAA, said Buck, hired Ogilvy because of the experience
of Lorra Brown, who recently was named senior VP-travel
and tourism marketing at the WPP Group unit. Brown had handled
the tour for VAA while she was at Interpublic's Weber Shandwick
operation. The airline suspended tour activities following
the Sept. 11 terror attacks, and Brown subsequently joined
Ogilvy. VAA is resuming the tour on April 27. It promotes
"Upper Class" cabin amenities.
Buck said Brown was a "key player" in the success
of last year's PR push. No other firms were considered for
has been named senior VP-corporate communications at Leo
Burnett, a Bcom3 Group unit. Previously, she was worldwide
director of Fallon Worldwide, and at Ruder Finn. Joanne
Ottaviano of Heyman Assocs. handled the search.
SAUDIS HAND H&K $77K/MONTH
Saudi Basic Industries is paying WPP Group's Hill and
Knowlton $77,000 a month to run the "core communications"
program for the Middle East's largest non-oil industrial
Jim Cox in H&K's New York office is handling the SABIC
business. H&K's contract with the Saudi Arabian Government-owned
entity went into effect Feb. 1.
SABIC is currently wrapping up the acquisition of DSM
Petrochemicals, which is based in the Netherlands. It is
expected to close that deal by June 30.
On its website, SABIC says its "power to provide
is both God-given and man-made."
Established by royal decree in 1976, SABIC's mission was
to develop the gases that the Saudis had been "flaring"
at oil web heads.
The company's 16,000 employees now market basic chemicals,
polymers, metals and fertilizers in more than 100 countries.
THOMSON'S OWENS JOINS B-M
Ed Owens, a 25-year financial PR veteran, has joined Burson-Marsteller
as managing director of its U.S. IR and financial services
He was at Thomson Financial where he was senior VP-global
consulting. Owens has counseled clients such as DaimlerChrysler,
Boeing, Campbell Soup, TRW, ABB and Signet.
Prior to Thomson, he was managing director for Georgeson
& Co.'s IR group. which Thomson had acquired. Earlier,
he was VP in Citicorp's investment banking sector where
he handled ADR programs for Ericsson, Hitachi, Alcatel and
WPP Group, which is the parent of B-M.
Owens will oversee 70 staffers. Judi Mackey is chairman
of B-M's U.S. corporate/financial practice. She joined B-M
from Edelman PR Worldwide last year
J.P. MORGAN CUTS IPG's RATINGS
J.P. Morgan downgraded Interpublic's stock to "long-term
buy" from "buy" because its analyst Fred
Searby expects the ad holding company will suffer disappointing
first-half growth as it collects more fee-based revenues.
He projects Interpublic will chalk up revenues of $6.65
billion, down one percent from last year's period. He reduced
earnings per share estimates to $1.49 from $1.55.
"Despite budding investor optimism regarding the
media space, investors expecting a sharp turnaround in the
overall media market may be disappointed," said Searby.
On the positive side, Searby believes Interpublic may
pick up some business from Publicis due to conflicts following
its acquisition of Bcom3.
J.P. Morgan initiated coverage on Interpublic on Jan.
29 with a "buy" rating.
Interpublic trades at $32.84. Its 52-week range is $39.15,
$18.25. Weber Shandwick and Golin/Harris International are
Interpublic's key PR units.
Edition, April 17, 2002, Page 3
POWER DAILY MIDWEST
Daily Midwest, a six to nine-page daily newsletter,
made its publishing debut last week.
is the second publication started by Io Energy, an Arlington,
Va.-based provider of energy information.
Power Daily Northeast, which covers the Northeast
and mid-Atlantic markets, was started last February when
the company was established by a team of former Financial
Times Energy managers and founders of Megawatt Daily.
previously head of FT Energy's news division, is president/CEO
of the company, and Tod Sedgwick, who started Megawatt Daily,
be dedicated to coverage of power markets from the Great
Lakes to the Dakotas to Oklahoma, said Michael Lustig, who
is editorial director.
who was managing editor of Megawatt Daily until Dec. 2001,
said PDM's team of veteran energy journalists "won't
simply recycle press releases or regulatory filings."
News staffers will "dig up and report on a new power
plant proposal, we'll put it in context and analyze what
it could mean to prices and transmission in the region,"
Northeast has uncovered dozens of unplanned unit outages
not reported elsewhere, averaging more than one exclusive
outage each day.
include Mary Liston, former assistant markets editor of
Megawatt Daily-markets editor (703/373-0153); Bonnie
Williamson, previously editor of Transmission Week-senior
editor (373-0154); Chris Warren-editor (373-0160); Mary
Memenza- assistant editor (373-0164), and Allison Cowan,
formerly a markets reporter for Megawatt Daily-senior
markets reporter (713/864-4354).
HART STARTS NEW ENERGY MAGAZINE
Hart Publications, Houston, has started Pipeline and
Gas Technology, a new monthly magazine that will be
sent to 26,000 decision-makers in the global pipeline marketplace.
The magazine will cover issues relating to crude oil pipelines
and natural gas transportation and distribution, according
to Buddy Ives, who is the magazine's publisher. He can be
reached at 713/993-9320.
Hart, a division of Chemical Week Assocs. of New
York, currently produces more than three dozen energy magazines,
newsletters, directories, special reports and web pages.
Hart's magazine products include its flagship Oil and
Gas Investor, Hart's E&P, World Refining,
and Energy Markets.
IN-FLIGHT MAGS ADJUST TO POST-SEPT.
In-flight magazines are adapting content to reflect post-Sept.
11 changes in business travel life, according to Donna Rosato,
who writes for USA Today.
Duncan Christy, editor of Delta Air Lines' Sky
magazine, said business travelers are exploring travel opportunities
with their families. He recently took his children on a
business trip to New York.
Christy said business travelers still want to take leisure
trips, but the trend is toward shorter vacations and staying
closer to home.
The April issue of United Airlines' Hemispheres
magazine features a piece about the latest travel gear.
Randy Johnson, editor of Hemispheres, said a surprising
amount of the newest travel products reflects an increase
in concern about security.
Johnson said the magazine is putting a spotlight on travel
products designed for frequent fliers to cope with the new
environment, such as a travel wallet that holds and displays
a boarding pass, driver's license and passport.
DJ LETTER FOCUSES ON ACCOUNTING
Michael Rapoport was appointed editor of Dow Jones' Re-Balancing
the Books, a new newsletter that will focus on accounting
practices and the current efforts to reform them.
The new publication, which will be published weekly, will
provide detailed analysis of financial reporting, dissecting
financial statements and taking a stand on the envelope-pushing
accounting tactics some companies use.
Readers will also get listings of auditor changes, going
concern statements and earnings restatements.
Rapoport is based in DJ's Jersey City news office.
Berman: For Women Only" premiered April 15 on
the Discovery Health Channel.
The new daily talk and magazine show is hosted by two
doctors and sisters-Laura Berman, a sex therapist and Jennifer
Berman, a urologist.
The series will embrace the subject of sexual health,
examining its relationship between everyday topics including
self-esteem and beauty, high blood pressure and diabetes,
childbearing, stress, menopause and love relationships.
Monique Chenalt, who is supervising producer for the program,
is also handling guest booking. She works for the producer-Wellerd-Grossman,
based in Sherman Oaks, Calif., at 818/755-4800.
show plans to start a monthly book club segment in June
to profile little-known authors.
Unlike "Oprah's Book Club," which is being cut
back, Today's books will be selected by best-selling authors,
who will appear on the show to announce and explain their
The following month, the chosen author will appear on
the show to discuss their work with readers and members
of one of the nation's book clubs.
Today currently features about 200 books a year in various
segments. Book magazine called Today one of the best
book launch pads.
news continued on next page)
Edition, April 17, 2002, Page 4
BUSINESS 2.0 GETS A NEW EDITOR
Josh Quittner was named editor of San Francisco-based
Business 2.0, replacing Ned Desmond, who will now
have the sole title of president and remain responsible
for editorial and business oversight of the magazine.
Quittner had been technology editor of Time and
managing editor of time.com.
Business 2.0, which was relaunched last August
by Fortune, has a paid subscription base of 550,000,
according to Desmond.
Jim Aley, currently managing editor of Business 2.0,
will return to New York as editor-at-large at Fortune,
JAROSLOVSKY JOINS INVESTMENT
Rich Jaroslovsky, previously a senior editor at The
Wall Street Journal, has joined Ziff Davis Investments
in New York.
Jaroslovsky, who was the first managing editor of the
Online Journal and founding president of the Online News
Assn., said he was hired for a new non-PR position by the
investment firm, which was founded by the same family that
used to own magazines.
Although a phone operator said Jaroslovsky is "director
of news and reporting," Jaroslovsky said his title
is still being worked out.
U.K. PRESS HIRES L.A. CORRESPONDENT
The Press Assn., the national news agency for the U.K.
and Ireland, has expanded its editorial presence in the
U.S. with the appointment of Rachel Blackburn as West Coast
Blackburn, who is working out of Los Angeles, will cover
both the entertainment industry and West Coast news events
for PA's media customers.
She can be reached at 323/654-8728; mobile: 323/687-7247,
or fax: 654-8730.
43, was promoted to executive editor of Los Angeles-based
Motor Trend magazine.
who was recently named EVP/general manager of CNN/U.S.,
has made several senior staff appointments:
was named VP of network programming; Mary
Lynn Ryan is now managing editor, and Sue
Bunda, a senior VP of CNN/U.S., was appointed overseer
of all bookers and talk shows.
who was special issues editorial director for The Hollywood
Reporter, was named to head the paper's new features
division, which was created by uniting the staffs of the
daily news and special issues departments.
She will continue to oversee the paper's more than 100
annual special issues and reports.
previously managing editor of Ladies' Home Journal,
has joined US Weekly as managing editor, replacing
who left along with Chad
Anderson, assistant managing editor.
formerly technology editor of USA
Today.com. was named deputy managing editor, news operations.
has replaced Meddis.
formerly assistant program director, was named news director
of KDKA-AM, Pittsburgh, replacing P.J.
Kumanchik, now program director.
Linda MacLennan was
named co-anchor of CBS 2's "10 PM News" in Chicago.
She will work alongside Antonio
SHIRK QUITS AS WIRED NEWS
George Shirk, who has been editor-in-chief of Terra Lycos'
Wired News website since 1998, has resigned.
Alison Macondray, who is managing editor, will replace
Shirk on an interim basis.
RAY BROCK DIES AT 75
The world of motorsports lost one of its most distinguished
veterans when Ray Brock, 75, former editor of Hot Rod
Magazine, died on April 2 at his home in Newport Beach,
Calif., after suffering a heart attack.
The Associated Press
and Dow Jones Newswires will increase the amount
of financial news on the AP's state, national and international
The new project, which provides articles carrying the
credit "Dow Jones/AP," will offer other Dow Jones
articles that originate on Dow Jones financial wires.
Editors at DJ and AP business news departments select
stories for distribution over AP wires.
Publicity Club of
New York's luncheon meeting on April 24 will feature
a panel of editors of men's magazines.
The panel will include A.J. Jacobs, senior editor,
Esquire; Jim Nelson, assistant managing editor, GQ;
Jack Wright, executive editor, Men's Journal, and
Greg Gutfeld, editor-in-chief, Stuff.
The meeting will be at the 3 West Club, 51st st.
The 72-year-old Hollywood
Reporter has been given a makeover. The daily
trade paper has added columns that cover all facets of the
business such as film, TV, music, technology and production
The New York Times
won seven Pulitzer Prizes, including the public service
award for its section devoted to coverage of the aftermath
of the Sept. 11 terrorist attacks.
Edition, April 17, 2002, Page 7
NIRI KITTY RISES
(continued from page
had an accumulated deficit of $1,284,669. It has indefinitely
suspended publication of its printed members' directory.
An electronic directory is available to members on www.iabc.com.
NIRI conference, which draws about 100 exhibitors and about
2,000 attendees, grossed $2,195,493 and netted $1,295,988
in 2001, a slight decline from the previous year. The 2000
conference grossed $2,369,455 and netted $1,431,905.
to IR" Seminars, its most popular seminar program,
grossed $564,458 and netted $365,146, up slightly from the
previous year's figures of $533,155 and $324,572.
for this No. 1 NIRI seminar is $1,175. Non-member rate is
and seminar income was off 9.5% to $3,184,894.
conference calls, and ten other types of seminars such as
"Day on Wall Street," "CFOs Taking on IR,"
annual reports, strategic planning in IR, and "Intro
consultant fees and employee benefits totaled $1,464,900,
vs. $1,350,277 in the previous year, and represented 29%
of the gross of $6.06M.
and benefits of associations in the $5-$10M range average
31% of revenues, according to statistics compiled by the
American Soc. of Assn. Execs.
of NIRI is Donald Eagon, VP, global communication and IR,
Diebold, North Canton, Ohio.
INTERNET WIRE OFFERS FLAT
Internet Wire, Los Angeles, founded in 1998, says the
increase in the size of financial press releases caused
by "Safe Harbor" legal statements has made its
service more attractive to public companies since it charges
a flat rate for electronic press releases.
IW's basic national rate is $325 no matter how long a
release may be. (www.internetwire.com.)
The wire service feeds into Yahoo!, Lycos, CBS Marketwatch,
Hoover's and many other outlets and satisfies disclosure
rules of the Securities & Exchange Commission, according
to Michael Terpin, chairman.
The Safe Harbor statements warn readers that there may
be forward-looking materials in the earnings reports and
advise caution in making judgments about the company.
Another recent arrival in the PR wire service business
is PrimeZone Media Network (www.
primezone.com), which also offers a flat rate for some
of its services.
Co-founded in 1998 by Tom Madden, a former executive at
UPI and PR Newswire, and Jeff Stacey, high-tech specialist,
it is based in Los Angeles.
PrimeZone operates a "global newswire service specializing
in corporate financial news and multimedia content to the
media, investment community, individual investors and the
PR Newswire is at www.prnewswire.com
and Business Wire is at www.businesswire.com.
STOP THREATENING REPORTERS
The Society of Professional Journalists is asking the government
of Israel to stop the intimidation and injury of reporters
trying to cover the conflict in the West Bank.
"SPJ is deeply concerned that the government of Israel
is worsening the grave situation in the occupied territories
by injuring and intimidating journalists who are attempting
to report the biggest story in the world today," said
SPJ president Al Cross in a letter delivered to the Israeli
Embassy in Washington, D.C., April 10. The letter can be
viewed online at www.spj.org/news.asp?ref=231.
While it is unclear whether specific coverage has encouraged
Israeli action against journalists, Cross, a political writer
and columnist for The Courier-Journal in Louisville,
told the Ambassador, "That's no reason to subject reporters,
photographers, and producers to the intimidation and injury
we have seen from your government," which "has
long been a beacon of democracy and freedom in the Middle
Israel has declared most cities in the West Bank off limits
Five journalists from Agence France-Press and Spanish TV
walked into the West Bank town of Yatta wearing Flak jackets
bearing the letters "TV" in big white tape and
waving a white flag but retreated under Israeli gunfire,
The New York Times reported last week.
SPUR "WORD OF MOUTH"
The goal of PR people should be to "spur a word-of-mouth
epidemic" about their clients, Ken Makovsky told the
Westchester PR Society of America. He has coined the word
"trialogue" to describe the "continuous flow
of information among and between a client and key constituencies."
The key is communications as the strategic driver - or
CASD - in today's fast-paced world, in Makovsky's view.
Effective PR pros stand at the CASD "decision point
to enhance the value of communications." Makovsky said
they play a critical corporate function along with finance,
sales and technology.
The Makovsky & Co. CEO recommended that a PR person
do the following:
Reset your clock.
Fierce competition makes speed and anticipating customer
Learn on the fly.
PR people must be prepared to shift strategies on a moment's
Act only on what matters.
Avoid "marketing myopia." Railroads stopped growing
because they just thought they were in the railroad business,
said Makovsky in quoting former Harvard professor Theodore
Let the customer choose.
PR people provide a real value to clients when they make
it easier for them to choose. CASD pros understand all the
marketing disciplines and can counsel management on which
ones to apply where. They understand the science of persuasion
and building rapport, said Makovsky.
Edition, April 17, 2002, Page 8
key story for media, trade groups and others last week was
the news that Penthouse mag is $52 million in debt
and may not be able to meet interest payments. Circulation
fell from five million to 650,000 because of so much free
porn on the 'Net.
The same specter is haunting
media and trade groups. There is so much free news, information
and how-to materials on the 'Net that people wonder why
they're paying for private sources. Media and trade groups
that provide the best information will survive but may have
to find new sources of funding.
area facing the might of the web is PR wire services (page
7). New companies in the field are offering flat
rates for unlimited word counts, putting pressure on the
older services which charge by the word. Tickers, which
used to require upkeep, have gone the way of the dodo bird.
It costs no more to send a 200-word release than a 5,000-word
All the services face
competition from free financial websites. Yahoo! has nearly
a lock on the field, accounting for 70% or more of such
traffic. The site satisfies disclosure rules including retrievability.
Nexis, which once had a near lock on media databases, charged
hundreds of dollars a search and a penny a line to print.
Searches are now free and stories are $3.25 regardless of
A growing and controversial
trend is the practice of employees working at home.
The American Society
of Assn. Executives, which surveyed 1,000+ groups last fall,
said "the most dramatic change in work arrangements"
since 1995 was that 48% of groups now have staffers working
at home vs. 23% six years earlier. Recruiters said this
is also a strong trend in PR.
women PR pros, who have left to have children, refuse to
return to the workplace on a five-day basis," said
one recruiter. "They usually will work no more than
three days and can enforce this because PR work is well-suited
to being done at home. Or, they just set up their own firms."
"It is an urgent
request of some jobseekers," said a recruiter. "They
will do almost anything, including taking significant paycuts,
to be allowed to work at home." One PR firm exec took
a 40% paycut to be allowed to work at home two days a week.
The Int'l Assn. of Business
Communicators has long allowed key staffers to work at home.
Veteran staffers Chris Grossgart, education head, and Natasha
Spring, Research Foundation director, normally work at home
three days a week. Gloria Gordon, editor of Communication
World, who is leaving in August, normally worked at
home two days a week. PRSA reports that none of its 44 staffers
is allowed to work at home.
said letting staffers work at home has its downside.
"Staffers need face time with each other and should
be there to help on problems that come up," said a
human resources head. "Also," he said, "you
must be there to protect your job because of office politics.
Those who work at home will be the first ones dropped in
a downturn. People can't complain about not getting promoted
if they're only in three days a week."
One recruiter said that
only senior staffers or those who are "politically
secure" are allowed to work at home. Resentment against
such staffers can build among those required to come in
every day. A PR pro who joined a firm was surprised by the
number of key people who did not have to report daily. "What
got me," he said, "is that I was yelled at for
being late one day when who knows what time these at-home
workers get up and get to their desks."
reason for the stay-at-home trend is agency finances.
Ad agency-owned PR firms are under heavy profit pressure.
Stay-at-homes often take less pay. Also, anyone working
less than 29 hours a week is not entitled to health benefits.
With PR salaries being kept to a minimum in New York, many
PR pros find the only homes they can afford are hours away.
"Tele-commuting" is the way to avoid a grueling,
PR Firms Backfires for Ad Industry," said the Wall
Street Journal April 8. The story said Omnicom,
Interpublic and WPP "raced to acquire<%0> PR
firms" in the mistaken belief that "PR agencies
were resistant to economic downturns" and would offset
sudden drops in ad volume. Actually, the conglomerates,
which generally abhor the function of PR and do not practice
it themselves, bought PR firms to momentarily boost their
revenues and profits, often piling up debt to do so. Now
the piper is being paid...NIRI
(page 1) is one of the richest groups in the U.S. with $4.6
million in the till. Instead of its dozen or so seminars,
it could put these materials on its website and educate
the entire IR field and financial reporters and still not
dent its lode. NIRI chair Don Eagon says that the Enron,
Arthur Andersen, etc., scandals are a chance for NIRI, corporations,
accounting firms and lawyers to "restore investor confidence."
But these are the very people who damaged it. NIRI finds
no room for the press in its equation. Giving the press
the same access to company execs that analysts get would
help to restore investor confidence. NIRI should pass out
hundreds of its member directories and other educational
materials to the financial press...maybe
IABC wouldn't have blown $1M on its TalkingBusinessNow e-business
if all its experienced execs were there daily and provided