Edition, July 31, 2002, Page 1
HOROWITZ JOINS DELOITTE
Peter Horowitz, a ten-year
PricewaterhouseCoopers veteran, has been named global PR
& analyst relations director at Deloitte Consulting.
He will guide DCs external communications as the firm
splits from Deloitte Touche Tohmatsu by October and adopts
Braxton as its corporate name.
Horowitz also held marketing
and communications posts at Morrison & Foerster law
firm, Booz, Allen & Hamilton consulting firm, and Coopers
& Lybrand in Canada.
Braxton will have a professional
force of 15,000 staffers in 33 countries.
Ketchum picked up the
DC account in May, besting Hill and Knowlton and Fleishman-Hillard.
CROASDAILE TO HEAD IR FOR
Tim Croasdaile, a former
IR executive at Gerber Products and Itel Corp. who chaired
the National IR Institutes ethics committee, has joined
APCO Worldwide as a senior VP in its new IR unit. Croasdaile,
55, is charged with positioning, corporate governance and
crisis communications work.
APCO is currently advising Worldcom, which filed for Chapter
11, and faces charges from the SEC for accounting fraud.
Croasdaile, who is based
in Denver, moves to APCO from Genesis, a marketing communications
firm. He was formerly VP of investor and corporate communications
at Bell & Howell Co.
The Grey Global unit
said Croasdaile will work closely with vice chairman Larry
Snodden, the former president and CEO of Burson-Marsteller.
Pharmaceutical Research and Manufacturers of America
is looking to hire a senior VP-PA to oversee its 20-plus
member media relations and advocacy communications staff.
The job requires at least 15 years of experience and reports
to PhRMA president Allen Holmer. Korn/Ferry Internationals
Nels Olson is conducting the search...Kim
Kumiega, head of Edelman PR Worldwide/Chicagos
crisis/issues management group, is leaving the firm for
personal reasons. She had been at Edelman for 18 years and
said the decision to exit was a difficult one...Annette
Green, who has been the perfume industrys top
publicist for the past 41 years, is retiring as president
of The Fragrance Foundation at the end of the year. She
plans to continue as a consultant for the next two years.
NYPR TO CLOSE AUG. 15
NYPR, a four-year-old
technology-focused boutique PR firm, will close its doors
Aug. 15, president and founder Marco Greenberg told this
NL. I came to the conclusion that it is time for me
to move on, Greenberg said, noting that the firms
employees were disappointed with the decision. He said he
is trying to find work for as many of the firms 10
staffers as possible.
Billings at NYPR jumped
23 percent between 2000 and 2001, to $1.8 million. Clients
which Greenberg said were shocked but supportive
of the decision include National City Bank, Symbol
Technologies and Jerusalem Venture Partners.
Greenberg said he plans
to pursue other long-time interests in the international
arena. He was previously a manager in Burson-Marstellers
corporate practice, where he handled aerospace giant TRW
and the Govt of Israel Economic Mission.
MWW ACQUIRES AVS
Golin/Harris Internationals MWW Group has acquired
AVS Consulting in Los Angeles, a government relations, advocacy,
public/media relations firm.
Arthur Sohikian, a former director of government affairs
for the Los Angeles County Metropolitan Transportation Authority,
founded AVS in 1997. He becomes a senior VP.
Harvey Englander, GM at MWW/L.A., was impressed when MWW
used Sohikians firm as a subcontractor a few years
ago. He was totally effective, said Englander,
which is one of the reasons why MWW bought the firm.
AVS has handled high-profile accounts such as representing
the Screen Actors Guild during the 2000 actors strike.
The firm also does work for Allied Waste Industries, Edmund
Pat Brown Institute of Public Affairs at California
State, Newhall Land and Farming Co., and Trillium USA.
MAGNET ATTRACTS DADDI
Bill Daddi, managing director of Lippe Taylor Brands Comms.,
has joined Magnet Comms. in New York as senior VP of its
national consumer unit.
He was previously a principal with The Dilenschneider
Group and PR director for Cotton Inc. for 13 years, and
earlier worked as a journalist.
Daddi will oveersee the firms consumer roster, which
includes General Nutrition Centers and JetBlue.
Edition, July 31, 2002, Page 2
MERCENARIES IN HUNT FOR OSAMA
An army of mercenaries
funded by U.S. corporations is scouring the wilds of Afghanistan
and Pakistan in the hunt for Osama bin Laden, according
to Edward Lozzi, who runs his own entertainment, legal and
political PR shop in Beverly Hills.
Lozzi says he was contacted
by a client that he would not name to organize
a press conference for the corporate initiative shortly
following the Sept. 11 attacks. The initial idea was to
raise $1 billion in private sector and public cash to bankroll
the campaign. Paying soldiers of fortune to
carry out this countrys fight makes a lot of sense
to Lozzi. It comes down to money, he said. Its a simple
rule of capitalism, which is the credo of the U.S.
The idea of a flashy
press campaign to launch and support the mercenary war was
soon dropped. Stealth was soon decided as the
way to go.
Lozzi says there are
at least 1,000 mercenaries in the hunt for bin Laden. These
are not freshly scrubbed young Americans, but rather French
Foreign Legion, former Italian paratroopers and ex-Israeli
intelligence officer types in the hunt for the $30 million
U.S. Government award for the capture or body of bin Laden,
according to Lozzi.
The PR executive supports
a measure proposed by Texas Rep. Ron Paul that the U.S.
return to a privateering force. That would allow
the U.S. to pay out to private mercenaries, bounty hunters
and foreign trained military unitsallowing them to
kill, capture and destroy terrorists and their assets.
The Counselor founded
Edward Lozzi & Assocs. in 1979, and has done publicity
for Milton Berle, Alice Cooper, Tina Louise (of Gilligans
Island fame), Zsa Zsa Gabor and heart surgeon Dr.
Christian Barnard. He also served as West Coast Press Advance
Officer during the first Bush Administration.
MARTHA IS BEGINNING TO HURT
Martha Stewarts stock trading woes are beginning
to hurt her company, Martha Stewart Living Omnimedia, according
to James Follo, its CFO. We have begun to see some
impact on our business resulting from the uncertainty relating
to the investigations of Martha Stewarts stock sale,
Follo said in a statement.
The financial executive said the company can no longer
provide Wall Street with accurate guidance about
its financial performance because of the ongoing Congressional
investigation of MSLO CEO Stewarts sale of ImClone
Systems stock. The company had set 53 cents a-share as its
full-year earnings guidance.
House Energy and Commerce Committee probers asked Merrill
Lynch on July 23 for additional records concerning the trading
of ImClone stock. Stewart has maintained that her stock
trades were completely lawful, but Wall Street
analysts are demanding that the style queen provide more
MSLO uses the Brunswick Group for financial/ crisis PR,
and Susan Magrino Agency.
WALTZ, ACHILLE TELL NYT OF
Former PR Society of America president Sam Waltz is pictured
on the front page of the July 25 New York Times Circuits
section for a feature on how personal privacy rights have
been eroded with the growth of Internet search engines.
The Wilmington, Del.-based Waltz told the Times about
how he met a woman through an online dating service. Before
they actually met, she did an Internet search on Waltz,
and apparently found his name of a website called SincereLust.com.
Associating that site with a Delaware transvestite group,
the woman sent Waltz an e-mail telling him to forget about
Waltz, who is described as a business consultant
in the article, was stunned to receive that message, and
upon investigation found the site was a drama group dedicated
to The Rocky Horror Show. As it turned out,
Waltzs son, Sam III, had belonged to that group while
attending the University of Delaware. Senior Waltz explained
the mix-up to the woman, and they have been dating for 18
The upshot: Waltz says he periodically does a google search
of his name to see if anything needs to be challenged
Name Linked with Slurs
Another PR pro, Jeanne Achille, CEO of the Devon Group,
told Times reporter Jennifer Lee that someone was
using her name and e-mail address to send racist slurs in
a French online discussion group. Thats a tough thing
to explain to potential clients when they run their own
search of Achille.
She doesnt know if the posting was made by a competitor,
a disgruntled employee or someone who thinks they have been
wronged by Achille. The posting has been impossible to remove.
There is no cyberpatrol that you can go to and make
all this go away, said Achille. You just have
to live with it.
AOL TW GETS CORPORATE GOVERNANCE
AOL Time Warner, which is under a Securities and Exchange
Commission investigation for possible accounting irregularities,
has hired ML Strategies for advice on corporate governance
issues. The firm also will provide advice on Internet and
Mark Buse, former Republican staff director at the Senate
Commerce Committee and aide to Sen. John McCain, and David
Leiter, who was chief of staff for Sen. John Kerry and served
in the Clinton Administration, are working on the business.
ML Strategies is a unit of law firm Mintz, Levin, Cohn,
Ferris, Glovsky and Popeo. It has been running seminars
on corporate governance in the post-Enron age. Those sessions
cover SEC investigations/class actions, document retention
policies and crisis communications.
AOL stock is down nearly 90 percent since it announced
the $156 billion acquisition of Time Warner in January 2000.
Edition, July 31, 2002, Page 3
HOW TO USE A
a spokesperson is an essential and cost-effective way to
get media coverage, according to Jeffrey Barnhart, president/CEO
of Creative Marketing Alliance, an integrated marketing
communications firm in Princeton Junction, N.J.
should be positioned as experts on a particular topic relating
to the clients business, says Barnhart.
Once a knowledgeable
and articulate person has been selected to interact with
the media, Barnhart said there are a few indispensable tips
to provide to your spokesperson to make the most of media
the reporters agenda and know what you want to get
across in the interview. Build a bridge between the reporters
questions and your messages.
2. Be prepared
by planning ahead. Prepare for the interview by anticipating
the reporters questions. Develop answers to those
questions and rehearse your delivery.
3. Be concise
and avoid professional jargon. Keep answers short and to
the point, and be sure to explain industry terms.
your message with facts and specific information. You position
yourself as an expert by using exact dates, figures, statistics,
and percentages. Credibility is achieved by providing useful,
wait for the media to come looking for you. Once you have
identified your spokesperson and he/she has received the
proper media training, it is time to establish that spokesperson
with the appropriate media outlets that reach the clients
a media alert to announce the availability of your spokesperson.
Include pertinent background information, as well as specific
topics they can discuss. Distribute the alert to all relevant
media outlets and make a follow-up phone call to introduce
yourself and offer to be on call for them should
they need your spokespersons expertise.
weekly book segment will debut in mid-September on
Martha Stewart Living, called Marthas
has been focusing on childrens, gardening and cooking
books, her picks for the new segment will feature interviews
with authors of a wide variety of books.
joins Today and Live with Regis and Kelly
as programs that have started covering the book beat after
Oprah Winfrey said she was dropping Oprahs Book
Living will publish its first issue in October.
The magazine, created by Donald Welsh, who founded Arthur
Frommers Budget Travel four years ago, will target
readers who want to save money without compromising on style
when it comes to cars, clothes, travel, furniture, food
is the new chic, says editor Sarah Gray Miller, who
is aiming Living primarily at 30-something females.
The first edition will have a press run of 300,000.
Well magazine, which Hachette Filipacchi stopped
publishing in 1999, has been restarted by its founder, James
founded in 1990, is recipe-driven, but it also has food-related
articles. The first issue has a cover story about the history
of cooking with chilies, and articles about the politics
of food in America and the food of the Greek islands.
which will be published quarterly, will emphasize dishes
made with fresh ingredients that can be bought locally.
which encourage readers to use whole grains, fruits and
vegetables, will provide nutritional data for each recipe.
EW is available in bookstores and on the web at eatingwell.com.
The old EW had a paid circulation of about 700,000.
is being produced by many of the original editors from its
old headquarters in Charlotte, Vt. Patsy Jamieson is food
MOORE GETS TOP SPOT AT TIME
Ann Moore, 52, was promoted to chairwoman/CEO of Time
Inc., replacing Don Logan, who was named group chairman
of AOL Time Warner.
Moore, who made her mark by successfully positioning People
as a womens newsmagazine with money-making spinoffs
InStyle and Teen People, will command the
worlds largest publishing company140 magazines
with 298 million readers.
Moore started in the finance department at Time Inc. in
1978, and then moved to Sports Illustrated, where
she worked for 10 years before moving to People in
WITHERELL NAMED M.E. AT LHJ
Mary Witherell is leaving CosmoGirl magazine, where
she is acting managing editor of the Hearst magazine, to
become managing editor Ladies Home Journal,
which is published by Meredith.
Witherell will be under Diane Salvatore, who was just
named to replace Myrna Blyth as editor-in-chief of the magazine,
which has an estimated readership of 14.5 million targeting
women over 30.
50, a news editor for America Online, died July 15.
In 1996, Wheeler, who had been a reporter and editor for
UPI and Reuters news services, joined AOLs new News
Channel, which was a pioneer among Internet providers in
news continued on next page)
Edition, July 31, 2002, Page 4
NEW FOREIGN EDITORS NAMED
John Bussey, 45, was named deputy managing editor of The
Wall Street Journal, and Fred Kempe, 47, was appointed
as the papers European editor.
Bussey, who was most recently foreign editor, will oversee
The Asian Wall Street Journal and the Far Eastern
Economic Review. In addition to supervising the Asian
publications and bureau, he will retain oversight of foreign
bureaus in the Americas, Africa and the Middle East.
Kempe remains editor and associate publisher of The
Wall Street Journal Europe. He will assume responsibility
for all Journal staffers in Europe, including those in Moscow.
who was the Nation editor of Time, was
named editor of the European edition of Time, which
is based in London.
He will replace the husband-and-wife team of Don and Ann
BW PROMOTES ITS TECH NEWS
Kathy Rebello was promoted to assistant managing editor
for technology at Business Week, replacing G. David
Wallace, who retired after 22 years with the magazine.
Rebello has been the backbone of our splendid Info
Tech coverage, including BusinessWeek e.biz and its
annual Info Tech 100 ranking issue in June, said Stephen
She joined BW in 1991 as a reporter in San Francisco,
and has been involved in the prepartion of 10 cover stories.
LALLI JOINS READERS
Frank Lalli has joined the Readers Digest Assn.,
in Pleasantville, N.Y., as VP for development, a new position.
Eric Schrier, SVP and global editor-in-chief, said Lalli
will be responsible for expanding RDs franchise through
print, broadcast and new media projects.
Lalli is to create new magazines, special one-shot
niche publications, and content agreements with radio, TV
and Internet partners.
Lalli, who has been editor-in-chief of George,
spent 17 years at Time Inc., rising from deputy editor of
magazine development to managing editor of Money
and to senior executive editor of Time Inc.
STERNGOLD JOINS S.F. CHRONICLE
James Sterngold, a national correspondent for The New
York Times, based in Los Angeles, will join The San
Francisco Chronicle Aug. 5 as a special reporter.
Phil Bronstein, executive editor, said Sterngold will
remain in Los Angeles and write news, features and business
pieces from around the state and the west including stories
on: cultural trends, the arts, the Pacific Rim, the film
industry as a culture and business as its affects the Bay
Area, and other Southern Californian and state stories of
Bay Area interest.
Jonni L. Walker,
who wrote a society column for Atlanta magazine,
called Jonnis City, was found dead in
her residence on July 17.
Walker was also a contributor to WWD, W
magazine and Glamour.
was named New York-based producer for Larry King Live,
a cable TV program.
Polkes is moving to CNN from ABC News, where he was director
of media relations.
has retired as letters editor at Newsweek.
previously executive producer of CNN Money Morning,
has replaced Katherine
OHearn as executive producer of American
Morning With Paula Zahn on CNN. Aguirre is based in
New York at 212/714-7800.
was named executive producer for Phil Donahues new
talk show on CNBC.
host of Wheel of Fortune, will host The
Pat Sajak Baseball Hour, every Friday from 1- 2 p.m
(ET) on MLB Radio, which can be accessed on MLB.com.
was named editor of The Pine Bluff (Ark.) Commercial,
succeeding Tom McDonald,
who resigned to protest what he called a directive from
the owner to endorse former congressman Jay Dickey.
which is headquartered in Winter Park, Fla., with offices
in New York, has acquired Cruising World and Sailing
World magazines from Miller Publishing Group.
All editorial staffers, including Cruising World
editor Herb McCormick and Sailing World editor John
Burnham, will remain with the magazines, which are headquartered
in Newport, R.I.
The number of senior-oriented
publications in North America declined in the last
year, according to the data in the recently published Senior
Media Directory 2002.
There were 1,255 such media listed in the 2001 directory,
but only 1,175 in this years book.
Don Picard, publisher, said the decline reflects consolidation
of publications, targeted at the over-50 population, and
the recognition by a few daily newspapers that seniors now
make up such a larger percentage of their audience that
they no longer need a special senior section,
but instead are reorienting their general news coverage
to appeal to their older audience.
The directory, which is now in its 15th year of publication,
is published by Creative Ink, Burnsville, Minn., and sells
Edition, July 31, 2002, Page 7
DROPS OMC RATING
Monitor of the KMV unit of Moodys has published a
chart showing that the rating of Omnicom has taken a sharp
drop from the BBB level to BB, also
known as the junk bond level.
at this level must pay more for credit because of an increased
risk of non-payment.
In the chart,
EDF refers to expected default frequency. It
is a market-based credit measure that provides the probability
that a company will default within a given time frame.
currently has about $2.9 billion in total debt, including
$1.75B in zero-coupon convertible bonds that may have to
be refinanced next year.
million zero bond via Merrill Lynch gives holders the right
to purchase OMC at about $165 a share while the current
price is in the mid-$40s.
of this issue and of a $900 million similar issue via J.P.
Morgan Securities have the right to demand their money back
also issue stock but analysts say this would create too
many new shares. OMC could offer a sweetener
in the form of interest or dividend payments to hold the
lenders at bay.
in the chart consists of four elements: the market value
of OMCs assets as opposed to the book value as reported
on its balance sheet; the equity value (stock price times
shares outstanding); adjusted total of liabilities (sum
of all short and long-term liabilities excluding deferred
tax and minority interests), and asset volatility, which
is the standard deviation of the annual percentage change
in the market value of a companys assets.
of a companys assets is measured by the expected variation
of the value of these assets over a given time period. The
higher the asset volatility, the less certain investors
are about the value of the company, and the more likely
the companys value will fall below its default point.
point is the point to which a companys asset value
falls before it is unable to raise capital to meet either
a principal or interest payment. It is about equal to the
total amount of short-term liabilities plus half of the
stock has declined from the $90s to the $50s
in recent weeks.
million earnings that Omnicom recorded last year would have
been reduced by $47.4 million had it expensed options, according
to a UBS Warburg report. Coca-Cola recently chalked up much
PR goodwill with its announcement that it would expense
17.4 million options outstanding. That represents 9.3 percent
of outstanding shares. Three million of the options, says
UBS, are in the money.
along with liquidity and earn-out issues are part of the
reason why the investment firm believes Omnicom and Interpublics
stock have dropped more than the 29 percent decline in the
S&P index since the first-quarter.
a buy rating on both conglomerates. It expects
OMC to show an eight percent growth in second quarter revenues,
while IPG will post a 14.4 percent decline. Both firms are
expected to do better in the second-half compared to last
an $84 price target for OMC. Thats a 68 percent premium
from its $50.39 price. IPG is expected to rise to $37, up
90 percent from its $19.50 current level.
MORGAN STANLEY CUTS INTERPUBLIC
The gap between Omnicom and Interpublic on new business
wins no longer appears to be closing, according to Morgan
Stanley analyst Michael Russell, who downgraded his outlook
on IPG to equal weight from overweight
on July 25.
Russell now expects a nine percent revenue decline at
IPG for the second quarter, more than double his previous
expectation of four percent and lowered the EPS outlook
on IPG to $1.48 from $1.51 for 2002.
Russells report says IPG new business wins in Q2
(estimated at $670M) are further behind rival Omnicom than
in Q1, noting that OMC has won twice as much business as
IPG in Q2.
MS has lowered its target price for IPG to $32 from $37
citing murky revenue growth beyond what the
firm previously expected. MS noted IPG continues to deliver
an impressive cost-cutting performance and is
encouraged by its new business activity, but
noted the familiar gap in new business wins between
IPG and OMC appears to have reasserted itself.
MS notes IPG had a rash of losses last year related to
the True North integration, which are still cycling through.
We will wait for top-line growth to reassert itself
before we get more excited about the shares, wrote
WPP DENIES BENDING ACCOUNTING
WPP Group denies that it bent the rules in
the way that it measures profits, rebutting a report in
the U.K. press that accused the parent of Hill and Knowlton,
Ogilvy PR Worldwide and Burson-Marsteller of using questionable
accounting procedures. Analysts at Willott Kingston Smith
charged that WPPs reported profits for 2001 would
have fallen more than 75 percent if the firm amortized goodwill
on its large acquisitions.
The firm says it is not required to write down the goodwill
of acquired assets because they have an infinite
economic life. We look at the value of assets every
year and it is unlikely we will take an impairment,
Paul Richardson, WPPs finance director, told Bloomberg.
He said WPP does amortize goodwill for small acquisitions,
but not for big ones. Of one of WPPs biggest acquisitions,
Richardson said Young & Rubicam is a valuable brand
that is still expanding and generating business.
Richardson said 2002 profits are holding up.
Edition, July 31, 2002, Page 8
Group says it does not have to write down the goodwill of
acquisitions because they have an "infinite"
economic life. But Willott Kingston Smith says WPP's profits
for 2001 would have fallen by more than 75% had WPP amortized
the goodwill on its large acquisitions.
Since U.K. accounting
rules allow goodwill to pile up on the balance sheet with
no write-offs unless impaired, WPP was carrying an astounding
$6.4 billion in goodwill as of Dec. 31, 2001. This shows
the huge sum WPP has spent on acquisitions since revenues
for 2001 were only $5.8B.
The U.S. has adopted a
similar rule for goodwill although "impairments"have
to be noted. Whether WPP, Omnicom, Interpublic, etc., will
admit any "impairments" remains to be seen. Goodwill
totaled $3.9B at OMC on 12/31/01. It was $1B in 1996.
An important WPP asset is
Hill and Knowlton, with $325 million in reported fees in
The H&K of today is
far different from the H&K of the 1970's and 80's when
it was the unquestioned crown jewel of the PR counseling
field. It was No. 1 in fees and boasted of never pitching
clients "because expectations were raised too high,"
as John Hill used to say. Blue chips flocked to H&K,
which proudly displayed a list of hundreds of clients.
H&K executives were
widely quoted. A 228-page collection of their speeches was
published in 1976. H&K had its own publications including
an elaborate annual report. Its execs were leaders in local
and national PR groups. Media often turned to H&K for
comments. Almost any exec would chat with the press on any
topic. H&K press reps such as Roy Battersby, Jim Catalano
and John Berard regularly visited reporters at their offices.
J. Walter Thompson, which
purchased H&K in 1980, promised not to go near it. This
ended in 1987 when WPP acquired JWT in a hostile takeover.
To regain its No. 1 status, which it had lost to Burson-Marsteller,
H&K purchased Carl Byoir & Assocs. and Gray and
Co. It took on controversial accounts such as an anti-abortion
drive of the Catholic Church; theScientologists; the corrupt
Bank of Credit & Commerce, and "Citizens fora Free
Kuwait" (actually the Government of Kuwait).
H&K stopped publishing
its account list. Speeches by execs and participation in
the PR community all but halted. H&K became just another
would H&K fetch in the market now? That is its true
value. Where it gets its numbers from is a mystery to us.
Ad conglomerates lump PR entities together and come
up with boxcar figures. Lately they have refused to supply
any proofs of these figures. The Byoir unit did not have
an "infinite" life. Its press-oriented culture
(many staffers were ex-newspeople) did not sit well with
the new owners of H&K. Within a few years, only a half
dozen of its 275 employees were left.
Thompson of the National IR Institute, has written
that "some IR pros are afraid of the media and prefer
not to deal with reporters, but this does not work in today's
Comment: IR pros are afraid
of the media because reporters will be muchtougher on them
and their bosses than analysts.
NIRI members have shut
out the press and even their own PR depts. for decades but
now that IR is in such trouble, they want to coordinate
with PR. Writes Thompson in PR News: "In many of the
larger corporations, IR and PR operate in separate silos."
IR pros made it this way and we don't expect them to give
up their tight grip on company financials. What they want
to do is take over PR. NIRI itself, with $5 million+ in
its treasury, has no on-staff PR person.
also says that "there's little difference between the
role of analysts and reporters." Analysts are
much more expert than most financial reporters and do more
thorough research on companies. But their reports are not
generally available to the public or even the press. NIRI
advises companies is not to put them on the web or otherwise
distribute them on the ground that this might put the companies
at legal risk. The brokerage houses that pay for the reports
only want them for their customers. A way should be found
to get these reports more widely distributed. The advice
in the reports ("strong buy," "buy,"
etc.), and target prices should be ignored. At one time
the research reports contained no such advice.
Warburg July 23 notes the large amount of options leaders
of OMC and IPG have given themselves. At OMC, the
17.4 million options are 9% of the total shares outstanding.
IPG has 38.3M (10.4% of the total). Expensing the options
would chop 9% off OMC's 2001 per share earnings and 12%
off IPG's. These are hefty sums to go to the small bands
of people at the top of these companies.
TV is so addictive: humans (and other animals) have an instinctive
visual or auditory reaction to any sudden movement.
Those that didn't have this reaction were apt to get eaten
alive. TV addicts are "glued" to their TV sets
because of the constant motion and sound. Like any addict,
TV victims wind up using the "substance" a lot
more than they want to and have withdrawal symptoms when
they don't get enough "tube time." (Item from
the 4/22/02 purview section of PR Reporter,
which originally got it from Scientific American,