B-M PROMOTES KEY IRAQI GROUP

Burson-Marsteller is working to buff the image of the Iraqi National Congress, said Riva Levinson, managing director of BKSH & Assocs., B-M's lobbying wing. "The contract is with the Iraqi National Congress Support Foundation," she said.

INC head Ahmed Chalibi, a banker whose family fled Iraq in 1958, faces opposition from various political groups in Iraq. They consider him a pawn of the U.S.

The Pentagon flew Chalibi and 700 "free Iraqi forces" into the country this month. He unexpectedly marched into Baghdad with 100 fighters on April 16, strengthening his position in a swiftly developing race for power among disparate Iraqi factions," according to the Washington Times.

BEIGIE TO WASTE MANAGEMENT

David Beigie, head of Weber Shandwick's Denver office, has left for a VP-corporate communications post at Waste Management in Houston.

Beigie also was executive director of internal communications for Qwest Communications and manager of worldwide PR for Eastman Kodak's consumer imaging division.

At WM, he reports to senior VP, government affairs and corporate communications Barry Caldwell. WM, the nation's largest trash hauler, earned $822M last year on $11.1 billion revenues.

SHARON BUSH HIRES WESTHILL FOR DIVORCE

Sharon Bush, who is locked in a messy divorce fight with husband Neil-the brother of the President -has hired Westhill Partners media relations firm.

Lou Colasuonno, the former editor-in-chief of both the New York Daily News and New York Post, is handling the account.

Sharon had threatened to write a "dishy" book about her 20 years in the Bush family.

At Westhill, Colasuonno has handled the Versace family and New School University president and ex-Senator Bob Kerrey, who was embroiled in a crisis concerning his time in Viet Nam.

Freud Communications, the U.K.'s largest independent firm, has been hired by AOL Time Warner's America Online for consumer PR. Matthew Freud worked with new AOL CEO Jonathan Miller when he launched Nickelodeon in the U.K. and the Paramount Comedy Channel in London.

ROBBINS TAPS KLORES FOLLOWING SNUB

Anti-war actor Tim Robbins has brought in Dan Klores Communications to deal with the aftermath of a public snub by the Baseball Hall of Fame, which cancelled a reunion of the cast of "Bull Durham," citing co-stars Robbins' and longtime partner Susan Sarandon's politics.

Hall of Fame president and assistant press secretary to former President Ronald Reagan Dale Petroskey cancelled the event last week, issuing a two-paragraph statement which said the institution "honors our armed forces" and "should never be used as a platform" for political statements.

Petroskey apologized April 18 after thousands of letters, e-mails and phone calls flooded the Hall regarding the cancellation. "I am sorry I didn't pick up the phone to have a discussion" with Sarandon and Robbins, he said in a statement, adding: "There was a chance of politics being injected into The Hall during these sensitive times, and I made a decision to not take that chance. But I inadvertently did exactly what I was trying to avoid."

Dan Klores told this NL his firm was recommended by a former agent and advisor to Robbins. "Our main goal of going to the media was to make the name Petroskey into a noun synonymous with failure," he said, adding he and Robbins were pleased with national coverage received.

PRSA HAS 'RECORD' ASSET GROWTH

PR Society of America's net assets grew $589,466, or 51%, to $1,744,317 as of Dec. 31, 2002 even though revenues were up only 1.2% to $9,261,966.

Helping the asset growth were the annual conference in San Francisco, which made a profit of $390,283 on revenues of $1,391,504, and an 18% decline in publication costs to $1,477,066.

PRSA said the $589,466 jump in net assets was a "record" gain of 68% over the $350,000 growth in net assets in 2001. Net assets were $1,912,843 in 1998. They were $1.6M in 1991 when revenues were $5.5M.

Reed Byrum, president, said: "With a strategic approach to expanding our offerings, we believe that we are successfully identifying and developing a group of crucial services for our established and prospective members."

"Our financial success speaks to our ability to deliver the services and value today's PR professionals truly need and expect from the Society," said Catherine Bolton, COO.

(continued on page 7)

OMC WANTS TO 'DESTAGGER' BOARD

Omnicom CEO John Wren, striking a blow for good corporate governance, will ask shareholders to approve "destaggering" of the ad/PR conglomerate's board at its annual meeting set for the Los Angeles offices of TBWA\Chiat\Day ad unit on May 20. Shareholder activists-not management-are the ones who normally push for ending staggered boards.

OMC's board had been split into three classes. Each director was voted to serve for a staggered three-year term. Though classified boards can aid in assuring continuity of management in the event of a hostile takeover bid, OMC, in its preliminary proxy statement filed with the SEC, notes that such boards are opposed by corporate governance groups.

Wren, Other Top Execs Forgo Bonuses

Though OMC met its 2002 performance goals as set by the compensation committee of the board, Wren and other key executives decided not to accept bonuses. According to the filing: "This was based on senior management's desire to assure that mid-level and operating management receive substantial incentive compensation in recognition of their excellent performance while at the same time permitting the company to achieve its shareholder value objectives."

Wren had received a $1.3M bonus for 2001 to supplement his $875K salary, which remained the same last year. Vice chairman Peter Mead earned a $1.275M bonus in `01, Diversified Agency Services chief Tom Harrison got $1.2M, while DDB chairman Keith Reinhard and BBDO CEO Allen Rosenshine each received $1.1M.

OMC reported a 10 percent boost in `02 net income to $643M on a 9.4% revenue jump to $7.5B.

MOODY'S CUTS WPP'S RATINGS

Moody's Investors Service has sliced WPP Group's credit ratings a notch because it feels the ad/PR conglomerate will be hard pressed to repay debt as it continues its share buyback program. "The company is unlikely to improve relatively high measures of relative indebtedness in the near term," said the Moody's statement. "Cost pressure and consolidation will remain important constraining factors for WPP's operating environment."

Moody's assigned a Baa2 rating on WPP's senior unsecured debt. That is the second-lowest investment grade.

SEABOLT DIES AT 81

Lee Seabolt, who was CEO at Selz Seabolt & Assocs. from 1962-82, died in Naples, Fla., on April 9. He was 81.

Paul Fullmer, who succeeded Seabolt as president, called him "one of the leaders in the 'Chicago School' of PR for 25 years, setting standards for creativity and client service."

He praised Seabolt for always being "in the trenches with you when you needed him-a true leader."

TUMBLING SADDAM STATUE IS PR BULLS-EYE

The Pentagon enjoyed a PR bonanza when the world's media prominently covered the destruction of a 20-foot statue of Saddam Hussein in downtown Baghdad. It was called one of most memorable images of the war, and a signal of the hatred that people in Baghad had for Saddam. CNN likened the event to the destruction of the Berlin Wall, which was destroyed by thousands of Germans.

A Reuters long-shot of Firdos Square, where the statue was located, shows the Square was nearly empty when Saddam was torn down. The 200 people milling about were U.S. Marines, international press and Iraqis.

An American military vehicle actually pulled down the statue. Marine Corporal Ed Chin, who temporarily placed a U.S. flag over Saddam's face, became an instant media celebrity. His sister, Connie, appeared on the "Today" show and spoke with her brother via a video hook-up.

ISRAEL HIRES 5W TO WOO STATE DEPT.

Israel's Ministry of Tourism has hired 5W PR in an effort to persuade the State Dept. to rescind the travel warning that it slapped on Israel, West Bank and Gaza Strip.

The State Dept. ordered its personnel to leave the region on March 12 due to the impending invasion of Iraq. It urged Americans in the area to avoid restaurants, buses and shopping malls because of the high potential for terror attacks.

5W CEO Ronn Torossian is coordinating his political activities with Geoffrey Weill Assocs., which promotes Israeli tourism.

The New York-based exec has been active of late in support of the Lebanese-American Council for Democracy, which has used the Iraq invasion as a platform to promote the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003.
That measure, sponsored by Rep. Elliot Engel (D-NY) and Ileana Ros-Lehtinen (R-FL) demands that Syria end support for terrorism, stop producing weapons of mass destruction, and withdraw from Lebanon.

Torossian also represents the Christian Coalition and the Zionist Organization of America.

LIBRARY OF CONGRESS LOOKS UP PR

The Library of Congress is looking to hire PR help to plot communications strategy, handle the media, write op-eds and run special events on a "task order basis." It wants a partner to prepare PSA scripts and arrange for their distribution.

Founded in 1800, the Library wants to jazz up its dusty image as the world's largest depository of books. The Library, which also ranks as one of the biggest providers of electronic educational material, wants to position itself as the "unparalleled treasure house of knowledge and creativity."

Ruth Nelson at 202/707-8610 is the contracting officer.

NEW LAW PROTECTS PATIENT PRIVACY

A federal privacy law, passed in 1996, is now being implemented nationwide to ensure the privacy of personal health information.

All hospitals had to be in compliance with the new Health Insurance Portability and Accountability Act (HIPAA) on April 14.

The new federal regulations, which will limit the information available to members of the media following up on the victims of fires, car crashes or other trauma incidents, also will have wide-ranging implications for hospital PR staffers.

Without written consent of the patient or next of kin, hospitals can no longer legally release information such as a patient's age, the nature of a patient's injury, the cause of the injury, the person's address, employer or time of death.

This law will also prevent hospitals from providing birth announcements to the media.

If the reporter has the name of the patient, public information officers can only say if the patient is in good, fair, serious or critical condition. If the patient has died, they can only release the time of death if the body is still at the hospital.

Fire districts and fire departments are also covered under HIPAA's rules and regulations.

The penalties for HIPAA violations are stiff. For civil penalties, the fine ranges from $100 to $250,000.

For criminal penalties, imprisonment can be as long as 10 years. The U.S. Dept. of Health and Human Services will investigate complaints.

Although reporters are not subject to fines and imprisonment, media people who impersonate a family member to get information would be subject to the penalties.

SURVEY: JOURNALISTS ARE HAPPIER

Journalists are better educated, older, better paid and more satisfied with their work than 10 years ago, according to a survey by Indiana Univ. journalism professors.

The survey involved phone interviews with 1,149 randomly selected editors, reporters and producers working fulltime in mainstream U.S. news media.

David Weaver, the Roy Howard professor of journalism at IU and one of the survey's authors, said the overall trends, which are a change from the past two surveys, were good news for the public.

"If journalists are more satisfied with their work, better paid and think their news organizations are doing a better job, we're likely to get better news coverage," he said.

The survey found most journalists are using the 'Net to get news releases and background information.

Other findings include:

-The average age of journalists increased to 41 from 36.
-89.3% had at least a bachelor's degree, up from 58.2% in the first survey in 1971.
-The median income was $43,600, a 39.3% increase from 1992 compared to an inflation rate of 30%.
-37.1% said they were Democrats, down from 44.1% in 1992.
-33.3% were very satisfied with their work, up from 27.3% in the last survey but still below the 49% who were very satisfied in 1971.
-One-third of journalists were women, a figure that hasn't changed for the past 20 years.
-People of color made up 9.5% of journalists compared to 30.9% of the overall U.S. population and 24% of Americans with college degrees. TV employed most minorities: 14.7%.
-70.5% rated as "extremely important" the media's traditional role as a watchdog of government.

PEOPLE

Bruce Wallin, previously director of marketing communications at Korn/Ferry International, an executive recruiting firm, was named executive managing editor of Robb Report, the luxury lifestyle magazine.

Vanessa O'Connell, who was covering the ad beat for The Wall Street Journal, was assigned to cover the tobacco industry, replacing Alix Freedman, who is now PR director of the 92nd St. Y in New York. Brian Steinberg, previously an ad reporter for Dow Jones Newswire, has replaced O'Connell on the ad beat.

Gary Hoenig was promoted to editor-in-chief of ESPN The Magazine, replacing John Papanak, who has been running the sports magazine since 1998.

Robert Sabat, who is deputy editor of Us Weekly, is joining GQ magazine on May 5 as managing editor, replacing Marty Beiser, GQ's longtime M.E., and a 17-year veteran of the Conde Nast Publications men's magazine. Andrew Ward, formerly articles editor at Esquire, also is joining GQ as senior articles editor.

Tom King, 39, who was The Wall Street Journal's Hollywood columnist since the late '90s, died April 13.

Keith Girard, who was editor-in-chief of Investment News, a Crain publication, was named editor-in-chief of Billboard magazine, filling the position left vacant when Timothy White died last June.

Ken McKenzie, 79, who was the National Hockey League's publicity director from the 1940s into the late 1960s, died April 9.

He co-founded The Hockey News in 1947.

Steven Gosset, who was an editor and reporter at CBS Radio Network for the past seven years, has joined PR Newswire's Feature News Service department as editorial services manager.

(Media news continued on next page)

POLL: STARS' VIEWS COULD IMPACT SALES

A poll released by VH1 indicates celebrities who make political statements that the public may disagree with can expect a negative impact on the consumption of their books, CDs, movies and TV programs.

A third (33%) of the Americans say they would avoid buying these products-with 40% of the 40-49 year-olds and 36% of the 50+ respondents saying they would do the same.
In terms of regions, Southerners were even more inclined to avoid making such purchases (37%).

In addition, 29% said they would not buy products that the celebrities advertise.

VH1, which produces a wide variety of music-based programs for MTV Networks, asked 1,030 Americans 18 and over what they think about celebrities that make public statements about political events.

More than half (54%) of respondents in VH1's poll say it is inappropriate for celebrities to make public statements about political events.

Several celebrities who have spoken out against the war in Iraq have been condemned in the press, and some are even seeing their comments affect business.

The Dixie Chicks, who have made anti-war comments on stage, may lose a Lipton iced tea ad, and some are calling for a boycott of ABC and its advertisers if the network goes ahead with a sitcom starring comedian Janeane Garofalo, who has express her opposition to the war.

The Baseball Hall of Fame recently cancelled an event commemorating the movie "Bull Durham" (see story on page 1).

The poll was conducted by phone April 2-6, 2003.

PERFECT PITCH TIPS ARE REVEALED

Colleen Welk, manager of The Growth Partnership, a St. Louis consulting firm, has been hitting publicity home runs ever since she stopped sending out press releases and phoning editors and reporters.

Welk, who had no previous PR experience when she joined the firm earlier this year, said editors never returned her calls, and press releases were never picked.

"Eventually, we learned how to play the game and turn our strikeouts into home run-worthy publicity," said Welk, who revealed her "perfect pitch" tips in the March/April issue of MarkeTrends, which is published by the Association of Accounting Marketing, in Kansas City, Mo.

Welk said reporters and editors like pitch letters because "they provide enough information to write the story and don't contain the corporate flack found in most press releases."

Perfect Pitch Tips

1. Keep it short and simple; 2. Demonstrate that you've read the publication; 3. Know their schedule and editorial calendar; 4. Read globally, think locally; 5. Prove your case; 6. Share the spotlight; 7. Don't forget to follow through.

PLACEMENT TIPS

Michelle Harris, who is host of "Alive & Well," a daily national TV program, has been tapped by the Globe, a weekly newspaper, to provide a regular column about natural health.

The column, entitled "Michelle Harris' Live Longer," will focus on nutrition, natural health and longevity. It will run in every other issue of the Globe, which has a worldwide readership of more than one million.

The column will feature information about health products and alternatives that are available in the marketplace.

The Globe, which is sold primarily through newsstands and large chain retailers, is known for celebrity features. Jim Lynch is editor-in-chief.

Women's Enews, a website and an electronic news service, has subscribers in every major media outlet in the U.S., and more than 50 correspondents across the nation and around the globe.

Many journalists use Women Enews to get leads and background on emerging issues and trends that matter to women, according to Rita Jensen, who is editor-in-chief of the New York-based news service.

Topics covered include national and international stories pertaining to business, culture, education, health, law, politics, science, sports and safety.

The other staff editors are: Ann Dobosz, senior editor, and Jordan Lite, assistant managing editor.

Publicists can e-mail story ideas to [email protected], and releases to [email protected].

Editorial offices are at 146 W. 29th st., New York, NY 10001; 212/244-1720; fax: 244-2320.

MEDIA BRIEFS

Azzaman, daily newspaper established in 1997 in London by Iraqi exiles and distributed throughout the Middle East, is publishing a new Iraqi edition.

The southern Iraqi city of Basra was the first to get free copies of Azzaman, which means "Times."

Saad al-Bazzaz, editor-in-chief of the paper, is planning to set up offices in Iraq and publishing facilities in Baghdad and Basra, where the paper has a correspondent.

The print run of the Iraqi edition is 10,000 copies and will go up to 20,000. The other editions printed in Bahrain, Algeria and London total 65,000 copies.

Bazzaz said there was no British interference in editorial content, which is upbeat.

The Philadelphia Inquirer is shutting down its Sunday magazine supplement in July.

Walker Lundy, editor, said The Inquirer will be adding back a Sunday broadsheet feature section and a separate TV tab.

The new section will be about eight pages and will have the best of the current magazine features, plus other stories, he said.

PricewaterhouseCoopers is running full-page ads in major papers urging companies to switch from rules-based to principles accounting.

"Principles have no loopholes," says copy. Rules-based systems encourage "creativity" in stretching the limits of what is allowed "even though it may not be ethically or morally acceptable," it adds.

PRSA's report is rules-based, "loophole" accounting that understates liabilities and fails to put the results in historical perspective.

PRSA headlined it has a "record-breaking increase in net assets" but assets are below the 1998 total and only $140,717 over what they were in 1991. The numbers look better lately because PRSA took a "big bath" $1.1 million loss in 1999-2000.

PRSA, in not having a deferred dues account for services to members, is saying that the $176 left over from each member's $225 "dues" (after $49 is subtracted for publications) is a "contribution" for which the member gets no particular benefits.

Seminars, special events, Silver Anvil Award entries and dinner, annual conference, etc., all cost extra, PRSA notes, saying it's hard to "quantify" the value of staff being available to answer questions.

It is hard to put a "number" on information or advice obtained but this could just as well be considered "invaluable" or of infinite worth.

Baruch College CPA Prof. Douglas Carmichael (who has just been named to the $425K post of chief auditor for the new Public Company Accounting Oversight Board), was asked by us for general principles involved in booking association dues.

He said those that defer dues income, matching it with expenses over the dues year, are practicing GAAP (generally accepted accounting principles) while those that don't, are not. Having a policy of not refunding dues does not exempt a group from booking dues as earned, he said.

Since medical, legal, CPA and assn. groups all have sizable deferred accounts, it's up to PRSA and its new auditor, Sobel & Co., to explain why PRSA does not. More than half of frauds involve "revenue recognition," says the SEC, which is the issue here.

Ex-PRSA president Kathy Lewton told a leaders teleconference April 15 that PRSA needs "advocacy" issues on which it can take a stand.

It has already filed two amicus briefs in the Nike/Kasky case, in which Nike is accused of misrepresenting working conditions overseas. Nike says its right of free speech is being abridged.

PRSA should look at the high cost of health insurance, which has a great impact on PR firms and PR depts. across the country. New York area HMOs are boosting rates 11% and more this year, reports the New York Post. A married employee with children will cost $1,453 a month or $17,436 yearly under Cigna's new rates. Healthnet will charge $18,144 while Oxford is a bargain at $14,729. Single employees cost $5,808, $6,456 and $4,908, respectively. Young singles ("child labor," said one PR pro) is about all PR firms can afford.

Lewton, a healthcare specialist, and the many other healthcare PR pros in PRSA, should campaign for a single payer system like every other industrialized nation has except the U.S. This would replace the current expensive system of 1,600 profit-making HMOs which has resulted in 41 million Americans being without any insurance.

The U.S. is 17th in actual health but No. 1 by far in health costs, according to "As Sick As It Gets" by Dr. Rudolph Mueller. If the latter only paid $50 a month, that would add $24 billion to the system and cut everyone's costs. As it is now, fewer and fewer pay more and more.

PRSA may move from 33 Irving pl. after 16 years even though it has 4.5 years to go on its lease. It has hired a broker and is initially looking at the cheaper rents offered downtown. Staffers are disturbed by evidence of mice and other problems.

Almost every other major New York trade group has offices in midtown for the convenience of members and visitors.

PRSA should have a midtown location with a library open to members and the public. It should again host the New York chapter. Following the lead of the American Society of Assn. Executives, it should cut staff by one-third and make them work in "teams" instead of in narrow specialties. It should appoint some non-members to its board. ASAE has two voting non-association execs on its board-Bob Moore of Starwood and Don Dea of Fusion.

PRSA is doing its usual slow avoidance-of-decoupling waltz. Four months into the year, not one leader has said anything in favor of it. This happened last year when decoupling was easily blocked at the Assembly where it was dumped at the end of the day with 10 other motions.

The perfect time to have a special Assembly devoted to decoupling everything from APR (including national offices) is June 21-22 when PRSA will pay $500 to each of its 116 chapters ($58,000) for a "leadership rally" for presidents-elect. An Assembly can be called if about 60 delegates (25%) sign a petition and file it 30 days before the meeting. A quorum is one-third of the total delegates or about 80 people. Non-APR presidents-elect should let APRs substitute for them. Decoupling must come from the 80% non-APR rank and file.

--Jack O'Dwyer