Edition, February 12, 2003, Page 1
RUDER FINN ABOUT EVEN IN 2002
The Ruder Finn Group,
which includes RF Binder Partners, reported 2002 fees were
$80.2M, down slightly from $80.3M in 2001. Employment rose
from 543 to 585. Payroll was $37.38M.
Peter Finn, co-CEO of
RF with Kathy Bloomgarden, said healthcare continues to
be strong as well as consumer, travel and corporate.
Edelman PR Worldwide,
No. 1 independent with $220M in fees in 2001, is preparing
its figures for release next week. A decrease of 6%-7% is
estimated. Edelman has many overseas offices while RF operations
are mostly in the U.S.
The big ad agency-owned
PR units are withholding their figures until April. Interpublic,
which owns Weber Shandwick and Golin/Harris, reported PR
revenues fell 18% in Q3 of 2002, the worst performance of
any of its sectors. WPP, which owns Burson-Marsteller, Cohn
& Wolfe and Hill & Knowlton, said PR was its poorest
performing segment in the first half of 2002, down 11.2%.
PR accounts for 11.8% of WPP's revenues.
Omnicom reported a 9%
gain in PR fees in Q3 but this includes an unspecified amount
from acquisitions. Omnicom PR units include Fleishman-Hillard,
Ketchum and Porter Novelli.
Tim Doke, VP-corporate
communications, American Airlines, DFW Airport, Texas, will
join Dell Computer Corp., Round Rock, Texas, in March in
the new post of VP of communications, reporting to Elizabeth
He will oversee media relations, PA at Dell and its Foundation,
employee PR and executive visibility. American is fighting
off bankruptcy. Dell last September called off a search
for a global PR head, saying that Allen was the best qualified
for the post.
Beverly Hills Conference
and Visitors Bureau named the travel and lifestyles
practice of Weber Shandwick for PR. Pollard Communications
and Crier Communications also pitched. WS will promote Beverly
Hills as a "world-class destination and brand,"
said Rene Mack, president of the practice. He plans to promote
its "hidden treasures" such as its architecture
EVP at the WPP Group and former CEO, Hill and Knowlton,
has been named to the board of the London-based ad/PR conglomerate.
H&K SUCCEEDS EDELMAN AT
Avaya, the troubled telecom equipment maker, has selected
Hill & Knowlton for a "branding project,"
which is a pretty big deal, Lydia Whitefield, VP, corporate
marketing and communications, told this NL. H&K takes
over for Edelman PR Worldwide. "We worked with Weber
Shandwick prior to that," she said.
Whitefield said she was impressed with H&K's capabilities.
She noted that Michael Gordon, SVP in H&K's technology
practice, will lead the Avaya team. Whitefield described
herself as a "tough client."
The Lucent Technologies spinoff lost $37.6 million during
its fiscal first quarter on an 18.7 percent decline in revenues
to $1 billion.
The company designs, builds and manages communications
networks for more than one million customers, including
90 percent of Fortune 500 companies.
Avaya was listed on the New York Stock Exchange on Oct.
2, 2000. It trades at $2.63.
COKE DEALS A BLOW TO IPG's
Coca-Cola has shifted its $150 million U.S. Coke Classic
account from Interpublic's McCann-Erickson agency to WPP
Group's Berlin Cameron/Red Cell unit, dealing a blow to
IPG CEO John Dooner.
The IPG head served as "chief client officer"
on the Coke business. The Wall Street Journal (Feb.
7) expects the account switch will likely put some heat
on Dooner, and even more scrutiny on McCann-Erickson CEO
Jim Heekin. Tensions between the two have been strained
largely because it was McCann's shoddy bookkeeping practices
that forced IPG to restate $181.3 million in earnings, sending
its stock into a tailspin and triggering a Securities and
Exchange Commission probe. IPG is now down to $10.75, off
its $34.98 52-week high.
McCann will continue to handle Coke overseas. Coke president
Steve Heyer, a former Turner Broadcasting executive, promised
to shake up the Atlanta-based company's marketing efforts
when he assumed the post in December.
a veteran of the New York political scene, has joined Ruder
Finn as senior PA advisor. The 16-year legislative veteran
and former Republican leader of the state's assembly will
work for RF from Albany, New York and Washington, D.C.
Peter Finn says Faso "understands how policy is made
and how policymakers think."
Edition, February 12, 2003, Page 2
EDELMAN & RUBENSTEIN GO
Edelman PR Worldwide is
spearheading insurer Swiss Re's battle against real estate
developer Larry Silverstein's claim that the Sept. 11 attacks
on the World Trade Centers were two separate strikes entitling
him to $7 billion in compensation as leaseholder of the
properties. Rubenstein Assocs. CEO Howard Rubenstein represents
Silverstein. The squabble earned a front page story in the
Feb. 5 New York Sun, and articles in the New York
Times and New York Post.
Swiss Re, which is the
largest of the 23 companies that insured the site, maintains
that Silverstein's policy defines the attack as a single
occurrence worth $3.55 billion. The company brands Silverstein's
two-event claim a "self-motivated hoax." Rubenstein
retaliated by calling Swiss Re's statement a "cynical
and manipulative attack on Silverstein Properties,"
and in turn "an attack on the rebuilding of lower Manhattan."
Swiss Re's court filing
states that Silverstein huddled with Rubenstein the day
after the attack. The two-strike strategy was adopted after
Silverstein rejected the idea to declare the WTC site "hallowed
ground" on which nothing will ever be built, according
to a memo by Rubenstein that is included in Swiss Re's court
filings. He wrote: "The WTC will not be rebuilt. It
is inconceivable that we could rebuild a place of commerce
on land that has become drenched with the blood of American
patriots. It needs to be consecrated much the way Gettysburg
and the Arizona are now."
called for the WTC to be rebuilt in "partnership with
the American people." The memo calls for a "national
crusade" that allows us to rebuild this symbol of American
pride and determination where the people of this nation
are equal partners in this effort."
Rubenstein says a Silverstein
Properties exec erred when he contacted the Port Authority,
and called the attack a single occurrence. That executive,
Robert Strachan, had no part in the negotiations, according
to Rubenstein, and was distraught after losing four co-workers
in the attack.
The U.S. District Court
in Manhattan will ultimately decide how much Silverstein
is entitled to.
OGILVY PR DRIVES INTO AUTO
Ogilvy PR Worldwide is
setting up a racing car unit to line up sponsorships, handle
media relations and arrange track-side events for its clients.
Len Batycki, who was with
Richard Childress Racing and the North Carolina Motor Speedway,
will head the unit from Charlotte. He had handled marketing
for RCR and the Goodwrench Chevrolet that was driven by
seven-time Winston Cup champ Dale Earnhardt. Rich Bartecki,
Ogilvy's senior VP in Chicago, is group director of the
Ogilvy has worked with
clients involved in CART and the National Hot Rod Assn.
Interpublic is currently
seeking to unload its Octagon Motorsports unit.
QORVIS GETS OUT SAUDI REFORM
Saudi Arabia is committed
to building a "world class" educational system,
and is determined to root out "offensive language"
in its school textbooks and curriculum, according a statement
distributed from Qorvis Communications, the Kingdom's $200K
a-month PR firm.
The statement follows
a Feb. 2 Washington Post story contrasting the modernization
drive launched by neighboring Qatar to the conservative
religious-based Saudi school system. Qatar has hired the
Rand Corp. to develop a public school curriculum that stresses
English over Islam.
The Saudi Government, according to a statement, following
the 9/11 attacks, conducted an audit of its textbooks and
found that about five percent of their content contained
offensive language. That material is said to have been eliminated.
Saudi Arabia is spreading
its Wahhabism belief throughout the New York State prison
system, according to the Feb. 4 front page of the Wall
Street Journal. It reports that some Muslim chaplains
celebrated the Sept. 11 attacks as a just punishment for
the wicked, and admire Osama bin Laden as a foot soldier
The Saudi Embassy as part
of its "prison outreach" program pays for chaplains
to study in Saudi Arabia. Its Islamic Affairs Dept. also
sends Korans, religious pamphlets and books to jails, according
to Nail Al-Jubeir, an Embassy staffer.
M&H GETS MYSTIC TRAVEL
The Mystic Coast & Country Travel Industry Assn., in
Mystic, Conn., has named Mintz & Hoke, Avon, Conn.,
to handle its account.
M&H will add some advertising and interactive work
to the account, which had previously focused exclusively
on PR while it was handled by M. Silver Assocs., New York.
MSA, and North Castle Partners in Stamford, Conn., as well
as Cronin and Co. in Glastonbury, Conn., had pitched the
account, which bills in the mid-six figure range.
ARTICULATE SPEAKS FOR ROSS
Ross Systems has awarded Articulate Communications its
PR account, Laura Grimmer, CEO of the New York PR firm,
told this NL. Her firm is responsible for corporate and
product messaging, customer outreach, media relations and
Grimmer says her past work with Carey Kauffman, who recently
joined Ross as marketing director, was one factor in landing
the business. Grimmer used to represent Kauffman's former
firm, Rely Software. Grimmer also said Ross executives were
aware of her work for Prescient Systems, a supplier to Ross,
which markets enterprise software to manufacturers in the
food, life sciences, chemicals and metals industries.
Edition, February 12, 2003, Page 3
PR FIRM TO GET PUBLICITY
Group used a press release to get a client, who is a former
jewel thief, an appearance on "The Oprah Winfrey Show."
Raton, Fla.-based PR firm, headed by Tom Madden, a former
VP at NBC, handles PR for Walter Shaw, who is believed to
be the world's most notorious jewel thief.
agreed to promote a DVD that Shaw had produced entitled:
"It Took a Thief to Stop A Thief." On the DVD,
Shaw tells homeowners how they can protect themselves from
burglars like he was once.
he saw an opportunity to catch the media's attention while
watching Don Imus one morning on TV when NBC reporter Andrea
Mitchell, who is married to Federal Reserve chairman Alan
Greenspan, called in and was lamenting about the break-in
and loss of so much jewelry.
drafted a news release connecting Shaw to the crime, and
had the release distributed by PR Newswire on Jan. 23. The
first paragraph began: "Walter Shaw, the reformed master
jewel thief turned film and DVD producer says the recent
burglary and theft of jewelry from Federal Reserve Chairman
Alan Greenspan's home could have been prevented "if
the chairman had consulted me or watched my DVD..."
When one of Oprah's producers saw the story on the wires,
she called Carolina Lammersdorf at TransMedia. After discussions,
pre-interviews and overnight shipments of materials, a crew
from Oprah flew down to South Florida and videotaped Shaw
at several home where the ex-burg;ar showed how easily they
could be broken into and how they could be made safer.
Shaw, accommpanied by Lammersdorf, flew to Chicago for his
appearance on the show.
has launched a separate website devoted to news and
information about the five boroughs of New York.
The site, www.nynewsday.com,
will concentrate on covering news events in the city and
development in entertainment, business, politics, and other
areas of interest.
Among the new site's features are audio and video reports
from entertainment events and community information about
The site "is meant to give local breaking news with
a New York voice," said Tony Wills, general manager
is extending its coverage of PR, according to Alicia
Griswold, a reporter for Adweek's Southeast edition.
She tells iCD Media's "Media Pro" that "creative
uses of media and PR" are currently hot topics. She
said Adweek also is doing "a lot more viral marketing
stories, PR-related wins and campaigns."
She pointed out Adweek began publishing a single
national print edition on Feb. 3 instead of separate editions.
She said each of the magazine's six regions will have dedicated
websites withing Adweek's webstite (www.adweek.com).
PR Fuel, a
column written by Ben Silverman and published by eReleases.com,
advises publicists to prepare for war.
"While you make your pitches this week, ask journalists
what happens if war breaks out," writes Silverman.
"Will they still take pitches? Will they concentrate
on war issues or will business go on as before?"
The Boston Globe's
editorial page editor Renee Loth has instituted a
new letters to the editor policy to make sure the letters
are not "canned PR material."
The new policy will confirm original authorship on nay
letter that could be part of an organized campaign.
She suggests adding regular online searches of key phrases
in any suspect letter, to quickly identify alread-published
The new policy is the result of a study by the Globe's
ombudswoman Christine Chinlund, who found the Republican
National Committee had authored a letter that ran in the
Globe on Jan. 12 and was signed by Stephanie Johnson. It
praised President Busch for "demonstrating genuine
leadership" on the economy, and detailed his tax relief
Chinlund found about 45 identical, or nearly identical,
letters have arrived in the Globe's electronic mailbox,
and multiple copies were also sent to papers nationwide.
She called it the "latest example of what some call
'astroturf' (as in, fake grass roots), and it has generated
a buzz online and in journalism circles."
Barbara Peck, executive
editor of Travel + Leisure Magazine, in New
York, will speak at the annual convention of the British
Columbia Tourism Industry Conference, scheduled for Feb.
19-21 in Kamloops.
Speakers at this year's conference will address ways to
stimulate renewed growth in the province's $9.2 billion
Jack Myers, a media
analyst and editor-in-chief of the industry newsletter
Jack Myers Report, believes a U.S.-led conflict in
Iraq will have "little to no effect" on ad expenditures
if it is a short conflict and no surge in terror attacks.
Companies like American Express have imposed a war clause
to let it out of its media contracts if a war is declared,
according to Ad Age.
A Swedish appeals court
has killed a 24-year ban on alcohol advertising.
The Market Court, Sweden's highest court of appeal for
consumer issues, upheld a lower court decision in favor
of Gourmet magazine, which has published alcohol
ads despite the ban since 1996.
(Media news continued
on next page)
Edition, February 12, 2003, Page 4
ENTERTAINMENT PRODUCERS WELCOME
Four editors and producers for national entertainment TV
shows took turns at the Publicity Club of N.Y.'s Jan. 29
luncheon to make their case on why PR pros should pitch
They were: Laura Saltman, entertainment producer, "Today
Show" on NBC; Marie Hickey, N.Y. bureau chief for "Extra,"
produced by Time Telepictures; Chris Fahey, N.Y. bureau
chief, Access Hollywood, a syndicated program, and Nando
Velasquez, who is N.Y. assignment editor for E! News Live.
Saltman said what sets Today apart is the entertainment
segment is allotted seven minutes for an interview while
interviews on the other programs tend to be two minutes.
"So it's a great place to come if you really want
to get your story out there," Saltman told more than
125 publicists at the sold-out meeting.
Another big difference is Tom Touchet, who is Today's new
executive producer, wants to personalize the interviews.
"Instead of just sitting across from somebody at a
junket or one-on-one, we want to get into their houses,
into their closets, meet their families, go to their hometowns,
learn about whatever they're passionate about, their hobbies,
if they have a charity that their sister is involved with
because she's ill, anything that's different and that you're
not gonna see on every show," said Saltman, who noted
her segment airs on Thursdays at 8:30 a.m. (ET), which she
said is one of the best time slots.
Saltman said e-mail is the best way to pitch her. "My
voicemail is constantly full and I have trouble returning
phone calls, which is a bad reputation I have in this business.
Please e-mail me any pictures that you have."
Get the Connection
Hickey said Extra has evolved into an entertainment news
magazine and "everything basically has a celebrity
angle to it.
"So, if you're pitching stories and it's something
that might not be about a movie but if there is a celebrity
connection, it's something that our show would be interested
in," said Hickey.
Hickey's bureau has one fulltime correspondent, Barry Nolan,
and two regular contributors--Tyson Beckford, who usually
covers the fashion/celebrity beat, and Jumana Kidd, who
is the wife of Jason Kidd of the New Jersey Nets.
Hickey said it is helpful to "get our pitches on e-mail,
in the body of an e-mail rather than have an attachment
because so much of the material that we have has to get
forwarded out to the west coast or to run it by somebody
"If it's breaking news, something for that day obviously
call us," said Hickey. "But if its's not time
sensitive and it can wait till the afternoon, for a phone
call, that's helpful."
Hickey said the N.Y. bureau feeds time senstive information
at 4 p.m. (ET), which she described as "our kind of
drop-dead deadline for getting material to Los Angeles."
"So for someone to call and say, `Y'know, I can get
such-and-such for you at 2 p.m. or 3,' that's no gonna work
on our timetable," said Hickey. When providing information
in a press release, Hickey said it is "always helpful
if they're truthful."
Fahey said "We prefer to be first, we don't want to
follow other shows, necessarily, with Extra coming on right
before us at 7 p.m. is so many markets."
Fahey said her show, which is targeted at the 18-49 age
group, is "always looking for something new and fresh.
We are the Britney Spears show."
Fahey said e-mail is best way to pitch information to her
because if "you get 200 phones calls a day then it's
hard to return all of them."
"Don't tell me you're coming exclusively to us when
I know it's because Entertainment Tonight passed or because
you've got Extra on the other line. I hate that. Just be
honest, say, `We're going wide,' or `We're coming to you
Fahey's bureau also must "feed out at 4 p.m."
E! News Is
Velasquez said E! News Live, which now airs from 7-8 p.m.
on the east coast, has "a lot of live guests, so that's
a little bit of an extra push, if you have any special guests
or anybody you want to get in."
He loves it when a publicist says, `Oh I thought of you
first, you're getting the exclusive."
Guests are booked for five-minute interviews in their N.Y.
studio. The interviews are handled by one of the show's
three hosts--Todd Newton, Giuliana DiPanda or Linda Grasso.
"We really enjoy all these celebrity angles,"
said Velasquez, who is especially looking for "goofy
He appreciates e-mailed pitches because it's easier to
forward than fax.
While the show's deadline is about 3 p.m. (ET), "we
can do breaking news" for a couple of hours after the
deadline, he said.
47, who is currently assistant news editor, was named to
replace Neil Amdur
as sports editor of The New York Times.
Amdur, 62, was appointed senior editor for staffing/national
recruiting last August.
formerly editor of Men's Health, which he helped
start, was named editor-in-chief of TV Guide.
previously CEO for the Robert Maynard Institute for Journalism
Education in Oakland, Calif., has joined The Seattle
Post-Intelligencer as editorial page editor.
47, has resigned as editor of The Akron Beacon Journal.
Edition, February 12, 2003, Page 7
HEAD ANNOUNCES NEW LAYOFFS
Cavaney, chairman of the American Society of Association
Executives, on Feb. 5 announced a new round of layoffs totaling
12 staffers and including two VPs.
which lost $1 million in the year ended last June 30, had
cut 18 from the staff at the end of the fiscal year. Staff
now totals about 105, down from 135-140 in previous years.
said staffers are being laid off purely for economic reasons
and not for any lack of performance or skills.
and activities that are not mission critical or revenue-oriented
will not be accorded priority claims on available funding,"
who are being laid off "made solid contributions to
ASAE's success" and "performance issues are not
involved in their departures," he added. "Today's
actions are necessary but painful," he said.
Are $14.5 Million
said revenues from dues and conferences are off slightly
and there has also been a decline in advertising.
those dismissed are Diane James, VP of strategic alliances,
and VP Ann Mahoney. One part-time worker was also laid off.
has about 25,000 individual members representing about 12,000
had $21.5 million in revenues in the year to June 30, 2002
and $22.6M in expenses for a net loss of $1,018,663. It
had net assets of $14.4M as of last June 30, including investments
of $5.1M, ownership of 55% of its 12-story building valued
at $10.7M, and "other investments" valued at $1.6M.
assets were put at $23.5M and total liabilities at $9.1M.
GLOVER PARK MOVES TO NEW YORK
Glover Park Group, the
Washington, D.C., firm set up by Clinton and Gore alums
in 2001, has brought on veteran Democratic spokesman Howard
Wolfson to head a New York push for the firm.
Wolfson, a native New
Yorker who was communications director for Senators Hillary
Clinton and Charles Schumer and chief of staff to Rep. Nita
Lowey (all D-N.Y.), joins GPG from the Democratic Congressional
Campaign Committee, where he was executive director.
The firm has also tapped
Clinton Administration veteran Lorrie McHugh-Wytkind to
head its D.C. public affairs practice. Wytkind was deputy
White House press secretary for media affairs and operations,
chief spokesperson for Secy. of Health and Human Services
Donna Shalala among other posts in the administration, and
earlier was press secretary for Sen. Edward Kennedy.
GPG was set up in 2001 by former Clinton press secretary
Joe Lockhart and Gore for President team veterans Carter
Eskew and Mike Feldman. Clients have included the Pentagon,
US Steel, the Assn. of Trial Lawyers of America and Sen.
'TARNISHED HALOS' AWARDED
PETA, Robert F. Kennedy
Jr., Moby, and the Los Angeles Unified School Board are
among winners of the 2002 Tarnished Halo Awards given by
the Washington, D.C.-based Center for Consumer Freedom.
According to Mike Burita,
a spokesman, the CCF is "a non-profit coalition supported
by restaurant operators, food and beverage companies and
concerned individuals, working together to promote personal
responsibility and protect consumer choices.
He said the Tarnished
Halo Awards "highlight the winners' use of misinformation,
duplicity and even violence to further a political agenda
or fatten their own wallets."
The winners represent
the best of the worst in the following categories:
-The "Most Callous
Exploitation of a Tragedy" category-Awarded to Robert
F. Kennedy Jr., who "was not the slightest bit sorry
after declaring that U.S. pork farmers are `a greater threat
than Osama bin Laden' in a speech on behalf of his Waterkeeper
-The "Excuse Me,
But Your Agenda Is Showing" category-Awarded to Ingrid
Newkirk, president and co-founder of People for the Ethical
Treatment of Animals, which disclosed "a $1,500 donation
to the North American Earth Liberation Front, an FBI-labeled
`domestic terrorist group' whose crime spree has caused
over $40 million in damage."
Illiteracy" category-Awarded to the Los Angeles Unified
School District, for "banning all sales of soda pop
in its schools, on the basis of well-debunked flimsy science
promoted by political activists."
-The "Nobody Listens
to Techno-Vegans" category-Awarded to pop star Moby,
for "calling on his fans to join PETA in sabotaging
a popular Thanksgiving hotline, which provides free advice
about cooking turkeys."
Also receiving Tarnished
Halos were Greenpeace; former cabinet secretary Joseph Califano
and his Nat'l Center on Addiction and Substance Abuse; Farm
Sanctuary, and the state of Maine.
AMEX'S MILLER JOINS F-H
tapped American Stock Exchange VP and special counsel, Carolyn
Miller, as a senior VP in its New York-based financial communications
Miller handled special
regulatory and financial projects at AMEX and earlier developed
a "plain English" initiative for the Securities
and Exchange Commission's division of corporate finance.
She serves as chief of
staff for F-H's corporate credibility advisory unit, working
closely with president Peter Verrengia and practice chairman
Leon Panetta, former chief of staff to President Bill Clinton
and ex-chair of the House Budget committee.
Miller is charged with
developing the firm's counseling and advisory services on
corporate governance, corporate disclosure and regulatory
Edition, February 12, 2003, Page 8
item: American Society of Assn. Executives cuts 30 staffers,
says that the rest will work in "teams" and be
"inter-dependent." The staff of 105 is down from
its peak of 155 three years ago.
We interpret "teams"
and "inter-dependent" to mean staffers will no
longer be in sharply defined slots.
Employees who have sharply
defined duties tend to fill the day with those duties and
reject any additional tasks.
However, plenty of things
can happen to an organization that don't fit into molds
and require staffers to go outside normal duties.
Though the ASAE lost $1
million in the year to June 30, 2002, it appears to be financially
It has expenses of about
$21 million a year but had nearly $7 million in cash and
investments as of last June 30 and another $10.7M representing
a 55% interest in its 12-story building on I Street in Washington,
D.C., a few blocks from the Capitol.
ASAE occupies the top
two floors. The investment is thought to be worth much more
ASAE's biggest liability
is $6.2 million in deferred revenues, mostly representing
services owed to members who pay dues a year in advance.
Almost all associations acknowledge such a liability.
ASAE staffers will
focus on seven programs that are highly valued by
members and that produce $$. Activities are to be matched
The current recession
has something to do with the staff cuts but it's not the
deciding factor, according to a spokesperson. Advertising
has declined and dues and conference revenues are off slightly.
can't help but wonder how the ASAE approach would impact
the staff of PRSA, which has remained at 48 full
time positions throughout the recession. About 44% of PRSA's
gross goes to pay salaries, far above the 29% average for
groups its size.
ASAE is about twice the
size of PRSA in terms of revenues and has 25,000 individual
members, about 6,000 more than PRSA. It has built up a treasury
of $7 million and owns more than half of its building.
ASAE decided a year ago
that its "world has changed and ASAE must do so as
much-heralded Sarbanes-Oxley Act of 2002, designed
to restore confidence in Wall Street, was panned Feb. 1
by The Economist under the headline "Wishy-washy."
The Act is "hardly the puritanical regime foreseen
by the evangelistic act, which was passed amid post-Enron
fire and brimstone last July," said the magazine.
Donaldson, expected to be confirmed as the successor to
SEC chief Harvey Pitt, was knocked by New York
Post columnist John Crudele Feb. 4. Crudele said Donaldson
knew or should have known about trading infractions at the
New York Stock Exchange when he was its chairman. Ten traders
were indicted in 1998 for a scheme that netted $11 million
in improper gains. The NYSE then cracked down on the abuses.
last week had to pay nearly $25 million in cash to
keep holders of its $850 million in "zero coupon bonds"
from demanding their money back. The deal wasn't supposed
to turn out this way. OMC's stock was supposed to soar to
$165 or so, making it unnecessary for OMC to pay any interest
and making the bondholders happy. Merrill Lynch, which underwrote
the complicated deal, got 3-4 times the normal commission
for it. OMC borrowed a lot of money to buy ad agencies,
PR firms and other properties that have not lived up to
was also in the news as it lost the U.S. Coke Classic account
to WPP Group and inked new credit agreements. Fred
Searby of J.P. Morgan downgraded the stock to underweight
from neutral and said there was an "excessive risk"
of further declines in the stock price (now around $11 after
being $57 two years ago).
Group, owner of Hill & Knowlton and Burson-Marsteller,
will publish its 2002 figures Feb. 24. We hope they're not
as confusing as last year's 26-page report which failed
to highlight the most meaningful figure-per share earnings.
Society of America still won't reveal the name of the person
who moved to table the motion to decouple Assembly membership
from accreditation Nov. 17. The tabling motion was improper,
say parliamentarians, because a "mover" must be
identified as well as the seconder.
Current PRSA leadership
should move to correct this gross and undemocratic injustice.
New York Times editor appeared to be backing away
from the harsh 53-page ethics code that it has just
socked its staff with. William
Schmidt, associate M.E. (to whom any "romantic
involvement with a news source" must be reported),
told Buffalo News columnist Anthony Violanti Jan.
31 that, "In most cases, all we're doing is getting
people to disclose these things because we need to know."
Schmidt feels the NYT
is a "unique institution and we live in the world's
largest glass house. Our integrity is everything. "
He also said, "These are not the Ten Commandments"
and "Nobody's going to read it. I see it as a kind
of reference book."
Stachowiak, fiancee of NYT executive editor Howell Raines,
is SVP at Coltrin & Assocs., New York PR firm founded
in 1982 by Stephen
Coltrin, who was formerly chairman of American Communications,
"an owner of media properties." He received a
B.S. from Brigham Young University and has served as a spokesman
for the National Pharmaceutical Council and Pharmaceutical
Mfrs. Assn. Coltrin's website lists nine executives and
seven branch offices including London and Singapore. An
account list is not provided.