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 AT QORVIS

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.

Scott Tagliarino, 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 meeting.

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 member.

GE HIRES EX-AIDE TO EPA'S WHITMAN

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 banned.

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, N.Y.

NIRI'S KITTY RISES 11% TO $4.6 MILLION

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. 31, 2001.

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 in 2000.

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)

PURCHASING PR FIRMS BACKFIRES FOR ADV

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 the decade.

Price Cutting 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 the business.

Julie Thompson 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 ACCOUNT

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 combine.

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 unit.

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.

POWER DAILY MIDWEST MAKES DEBUT

Power Daily Midwest, a six to nine-page daily newsletter, made its publishing debut last week.

The newsletter 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.

Randy Rischard, previously head of FT Energy's news division, is president/CEO of the company, and Tod Sedgwick, who started Megawatt Daily, is chairman.

PDM will be dedicated to coverage of power markets from the Great Lakes to the Dakotas to Oklahoma, said Michael Lustig, who is editorial director.

Lustig, 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," said Lustig.

Power Daily Northeast has uncovered dozens of unplanned unit outages not reported elsewhere, averaging more than one exclusive outage each day.

Other staffers 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. 11

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 FIELD

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.

PLACEMENT TIPS

"Berman and 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.

NBC's "Today" 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 choice.

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.

(Media news continued on next page)

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, Desmond said.

JAROSLOVSKY JOINS INVESTMENT FIRM

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 correspondent.

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.

PEOPLE

Matt Stone, 43, was promoted to executive editor of Los Angeles-based Motor Trend magazine.

Teya Ryan, who was recently named EVP/general manager of CNN/U.S., has made several senior staff appointments:

Bob Brienza 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.

Paula Parisi, 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.

Carolyn Noyes, previously managing editor of Ladies' Home Journal, has joined US Weekly as managing editor, replacing Maura Fritz, who left along with Chad Anderson, assistant managing editor.

Sam Meddis, formerly technology editor of USA Today.com. was named deputy managing editor, news operations.

Tamara Holmes has replaced Meddis.

Jeff Hathhorn, 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 Mora.

SHIRK QUITS AS WIRED NEWS EDITOR

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.

MEDIA BRIEFS

The Associated Press and Dow Jones Newswires will increase the amount of financial news on the AP's state, national and international wires.

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 services.

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.

NIRI KITTY RISES
(continued from page one)

The group 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.

Conference Is Profitable

The annual 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.

NIRI's "Introduction 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.

Member rate for this No. 1 NIRI seminar is $1,175. Non-member rate is $1,373.

Total conference and seminar income was off 9.5% to $3,184,894.

This includes 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 Lite" seminars.

Salaries, 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.

Salaries and benefits of associations in the $5-$10M range average 31% of revenues, according to statistics compiled by the American Soc. of Assn. Execs.

Chairman of NIRI is Donald Eagon, VP, global communication and IR, Diebold, North Canton, Ohio.

INTERNET WIRE OFFERS FLAT RATE

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 general public."

PR Newswire is at www.prnewswire.com and Business Wire is at www.businesswire.com.

STOP THREATENING REPORTERS - SPJ

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 East."

Israel has declared most cities in the West Bank off limits to journalists.

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" - MAKOVSKY

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 needs critical.

Learn on the fly. PR people must be prepared to shift strategies on a moment's notice.

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 Levitt.

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.

A 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.

One 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 release.

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 length.

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.

"Many experienced 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.

Recruiters 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."

Another 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, energy-sapping trip.

"Purchasing 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 input.
--Jack O'Dwyer