Edition, Feb. 11, 2004, Page 1
STATE FARM ADDS G/HI
State Farm Insurance
Cos. has hired Golin/Harris International, a part of Interpublic,
to position it as a player in the life insurance business.
The Bloomington, Ill.-financial services company will continue
its 15-year relationship with WPP Group's Burson-Marsteller
for corporate and product support work, according to Rock
Jenkins, assistant VP-public affairs. G/HI was brought onboard
to provide a "different perspective to the table."
Mardiks, GH/I's chief marketing officer, told O'Dwyer's
that Susan Puflea, senior VP, will be responsible for the
account. She will be assisted by Fred Cook, CEO; Keith Burton,
chief client officer; Scott Farrell senior VP, and Mardiks.
Farm is following the same "multi-agency approach"
to PR that rival Allstate Insurance displayed last month
when it added Weber Shandwick to the line-up. The IPG unit
was hired for corporate positioning, while WPP's Hill
& Knowlton will continue its four-year run doing other
Swerling (Malibu, Calif.) handled the State Farm search.
State Farm is the largest auto and home insurer in the U.S.
EDELMAN CONNECTS WITH
Edelman has won software maker Tibco's six-figure U.S. PR
account, emerging from a 12-firm field that was pared to
a handful of contenders. Blanc & Otus, a Hill and Knowlton
unit, had the work but declined to participate in the review,
according to Bob Berger, Tibco's director of global communications.
He told this NL the installation of a new marketing team
at the company sparked the review, which began late last
Tibco, which had revenue of $270M last year, makes software
that integrates companies' disparate software and computer
Edelman's Silicon Valley office will head the account for
Tibco, which is based in Palo Alto.
Schering-Plough has named Julie Lux director/global product
communications and advocacy development. She joins from
Pfizer, where she helped integrate Pharmacia Corp.'s drugs
for Parkinson's disease, overactive bladder and women's
At's -P, Lux will be in charge of the company's line-up
of primary care, animal health and consumer product offerings.
She reports to Mary-Frances Faraji, VP.
Lux has more than 25 years of communications experience.
She has held posts at Germinder & Assocs., National
Rural Health Assn., and ran her own firm.
RF CHECKS OUT OF FOUR
Ruder Finn will cut ties with the Four Seasons Hotels and
Resorts chain on April 30 after a six-year run.
Richard Funess, president of RF/Americas, said the account
had become less satisfying for the PR firm.
"The work become more tactical and less strategic in
nature," he said, so RF decided it was time to move
on. Funess would not disclose the size of the Four Seasons
Elizabeth Pizzinato, Four Seasons' PR director, has not
been reached. Four Seasons operates more than 60 properties
in 30 countries. The company is based in Toronto.
WAG ED WINS KYOCERA
Waggener Edstrom Strategic Communications edged Ruder Finn
for the six-figures Kyocera Mita America account. A dozen
firms were considered by the Fairfield, N.J.-based unit
of Japan's Kyocera Group.
Peter Hendrick, director of marketing communications at
KMA, credited Wag Ed's "IT heritage and solid media
relationships" in announcing the win. The KMA business
will be handled out of the PR firm's Stamford, Conn., office.
KMA markets a line of printers, digital copiers and imaging
systems. Wag Ed will assume brand-building activities its
new client. The company, on its website, uses the slogan
"The New Value Frontier" to position its products.
M Booth & Assocs. was the incumbent on the account.
Bob Finlayson has joined
Burson-Marsteller as CEO of its northern California operation
and managing director of its technology practice. Hewlett-Packard
and SAP are B-M's key tech accounts.
Finlayson was at Edelman PR Worldwide, managing its Microsoft
Xbox business. His 20-year tech PR stint included posts
at Blanc & Otus and Cunningham Communication. He has
handled Sony Computer Entertainment, TiVo, Charles Schwab
and a raft of startups.
Finlayson also was VP-communication and marketing at the
Video Software Dealers Assn. He began his career as a journalist
in Washington, D.C.
Heidi Sinclair heads B-M's tech practice.
Edition, Feb. 11, 2004, Page 2
DAYTONA 500 GETS `PASSION.
Mel Gibson's movie, "The Passion of Christ," will
be featured during the Daytona 500 on Feb. 15 as Interstate
Batteries plans to paint a plug for the picture on the hood
of its racing car driven by Bobby Labonte.
Norm Miller, chairman of the Dallas-based company, said
his company is "privileged" to promote the film
because "this outstanding movie factually portrays
the most important 12 hours in history."
Interstate has promoted other films, such as "Toy
Story" and "The Hulk," Miller told O Dwyer's
. "It's what we do for publicity," he said, adding
that Interstate has lined up a push for the sequel to "Shrek"
following "The Passion."
Miller saw a screening of The Passion, and was "taken
aback" by its artistic quality. "That's what you
get when Mel Gibson is involved in a film," he commented.
He has invited James Caviezel, the actor who plays Jesus,
as his personal guest to the event.
Caviezel drove the 50th anniversary Chevrolet Corvette pace
car at the beginning of the Indianapolis 500 race in `02.
He will be in the Interstate Batteries pit on race day,
cheering on the car.
Interstate, said Miller, can't divorce itself from the
controversy surrounding the film that opens on Ash Wednesday,
Feb. 25. To Miller, much of the uproar is based on a "misunderstanding."
He said the Bible does not condemn the Jewish people for
the crucifixion of Christ. Miller said it was the political
leadership that had Christ killed.
The company directs people to a booklet, "Is the Passion
of the Christ Anti-Semitic," that provides feedback
from "Jewish and Christian people who have seen the
Labonte was the winner of the `00 Winston Cup, and is racing
in his 12th Daytona. This is Interstate's 13th season as
primary sponsor of the No. 18 Joe Gibbs Racing car. Miller
said Joe Gibbs PR people and executives from Universal recommended
that Interstate get involved with the Passion project.
NBC will televise the Daytona 500.
Interstate sent a release via PR Newswire shortly after
9 a.m. on Feb. 6 that included quotes from Gibson about
the sponsorship. It issued a correction about an hour later,
which deleted those quotes.
It also changed an attribution of one quote from Gibson
to the more generic "filmmakers."
The revised statement reads: "Filmmakers say The
Passion is intended to inspire, not to offend."
The initial release read: "No matter what the media
says, Gibson says The Passion is intended to inspire,
not to offend."
Miller said he was unaware that two news releases were
issued. "Maybe Gibson's people didn't like the quotes,"
Interstate is the top selling brand for replacement auto
batteries in North America.
GCI JUMPS ON
Grey Global Group's GCI unit is sponsoring an "offshoring
summit" in New York on Feb. 18 to discuss what CEO
Bob Feldman calls a "flashpoint issue." India's
National Assn. of Software and Services Companies, which
uses Hill & Knowlton for PR, claims shipping jobs to
the subcontinent will help the U.S. offset a potential labor
Executives from Citigroup, Aetna Life, Delta Air Lines
and Nike have already signed up for the GCI event that is
"closed to the press," according to spokesperson
Sue Pagano. The media, she said, are excluded to encourage
a free-flowing dialog among panelists and the audience.
Panelists will explore the impact offshoring has on a "corporate
reputation, customer relations and employee loyalty,"
and "if there is a risk in waiting."
GCI client, Cap Gemini Ernst & Young, has scored a
place on the panel. Bill Frech, VP/business process outsourcing
service line leader, will talk about stakeholder communications
and corporate reputation.
Feldman will open the session with an overview, and Debjani
Deb, the firm's chief strategy officer who is a native of
India, will close it. GCI will foot the bill for lunch.
There is no charge for the summit.
PR PROS NEED EDUCATION,
PR pros need to learn more about their profession but many
"couldn't care less" about PR education, Prof.
Donald K. Wright told 250 PR people at the International
PR Assn.'s Golden World Awards dinner Feb. 5 at the Union
League Club, New York.
"We'll never fix PR education in this country or elsewhere
until educators and practitioners care enough to fix it,"
he said, adding: "And PR never will be considered a
profession by anyone outside of our field until we do that."
Wright, who holds a Ph.D. from the Univ. of Minnesota,
was installed as IPRA's 2004 president, becoming the first
full-time university professor ever to serve as IPRA president.
He succeeded Ceyda Aydede, general director of Global Tanitim,
Wright said lawyers and those in many other professions
"know much more about them than most PR people know
about their field." PR, he said, started out with "technician-based,
one-way communications , not much more than shoot-from-the-hip
publicity," but today it has evolved into "relationship-building
and two-way communication."
PR plays an "extremely important role in what happens
in business and government, but most of the world's people
still do not know what we do," he added.
Wright said IPRA's financial situation has gone from a
$100,000 debt several years ago to cash reserves of about
The group, which celebrates its 50th anniversary next year,
has built its membership from below 1,000 to 1,125. Members
are from 100+ countries.
"We are proud to say the IPRA locomotive is no longer
derailed, but is back on the track and headed in the right
direction," said Wright.
Edition, Feb. 11, 2004, Page 3
CNN REGROUPS NEWS BUREAUS.
David Bohrman, who was producer of CNN's "NewsNight,"
has been named chief of CNN's Washington, D.C., bureau,
succeeding Kathryn Kross, who is getting a new role with
NewsNight will be run by its senior producers until a replacement
Bohrman's appointment was part of a regrouping of CNN's
11 bureaus into four regions, Northeast, Southeast, Midwest,
Boston and New York, which will make up the Northeast region,
will be managed by Karen Curry in New York.
Atlanta and Miami will occupy the Southeast region and
will be led by MaryLynn Ryan in Atlanta.
Edith Chapin in Chicago will run the Midwest region, which
includes the Denver and Dallas bureaus.
The Los Angeles bureau chief, Pete Janos, will manage the
Western region, including Seattle and San Francisco.
Each region will have a newly designated point-of-contact
on the assignment desk and will continue to report to Nancy
Steve Robinson, a former reporter and editor at Time Inc.,
who was most recently head of CNN Sports Illustrated,
was named to oversee the National desk.
Robinson, who will be charged with developing stories and
series for the network, will be looking for story pitches
from every corner of the network, according to Princell
Hair, CNN/U.S. general manager.
Kim Bondy was named to head the Features unit, which is
expected to play a greater role under the new system set
up by Hair.
"Viewers rank medical, science/tech and entertainment
news as among the most interesting and I plan to make those
content areas an even greater part of our programming,"
UTNE'S TOP EDITOR JOINS
Jay Walljasper was hired as executive editor of Ode
magazine's international English edition.
Walljasper currently is editor and editorial director of
Utne Magazine in Minneapolis, where he has been since
Ode was established in The Netherlands in 1995 by Jurriaan
Kamp, who is editor-in-chief. The English edition was started
in the U.S. last October. It is now read in 73 countries.
Walljasper said he is "truly pleased to be joining
a global magazine devoted to telling another side of the
story. Ode offers a fresh perspective that people do not
expect to find in the media. This includes the often-overlooked
good news that can inspire us in our lives here at home."
Prior to Utne, he was a travel editor at Better Homes
& Gardens and the cultural editor at the political
newsweekly In These Times.
Walljasper will remain in Minneapolis, according to Jane
Trombley at Temin and Co., a New York-based firm that handles
Ode's PR in the U.S.
STEVENS TO EDIT WEEKEND
Amy Stevens was named editor of The Wall Street Journal's
"Weekend" section, succeeding Jonathan Dahl.
Stevens, who has been deputy Page One editor since August
2000, will start her new job in March, reporting to deputy
managing editor Joanne Lipman.
TIME EDITOR TO BE
Richard Stengel, a longtime writer and editor for Time
magazine, has been named president/CEO of the National Constitution
Center in Philadelphia.
Stengel, 48, who will assume his new position on March
1, has been national editor at Time, in charge of domestic
and political coverage. Before that, he was the magazine's
cultural editor and managing editor of Time.com.
Stengel, who played on Princeton's 1975 basketball team,
became an aide and speechwriter in 1999 for presidential
candidate Bill Bradley, who also had played on the team.
He co-authored Nelson Mandela's autobiography, "Long
Walk to Freedom," and wrote "You're Too Kind:
A History of Flattery," which was published recently.
Lisa Beyer will replace Stengel as national editor, and
Romesh Ratnesar has been named world editor.
media columnist for New York magazine, is joining
Vanity Fair magazine as
a columnist and contributing editor on March 1.
fashion editor of Harper's Bazaar, and Heather
Hodson, features senior editor, have left the magazine.
Suzanne Kirschner was
named senior technology editor of Popular
was promoted to executive editor of Playboy
has joined Time Out New York
magazine as editor of its health and fitness department,
called "Chill Out."
a media columnist for The New York Observer, a weekly
paper, is joining Sports Illustrated as a staff writer.
who has been "Today" supervising producer, was
renamed executive producer of "Today in New York,"
a morning newscast that airs on WNBC. She replaces Nancy
Han, who was moved to the 5 p.m. and 6 p.m. newscasts.
The Golf Channel and
Natural Golf are looking
for four golfers to feature in a new eight-part reality
series premiering in June, called "The Natural Golf
Makeover Challenge." www.thegolfchannel.com.
(Media news continued
on next page)
Edition, Feb. 4, 2004, Page 4
The Wall Street Journal will write and produce a
weekly section for Hoy, a Spanish-language daily
newspaper that is published in the U.S. by the Tribune Co.,
The section, which will appear every Thursday in the New
York, Chicago and Los Angeles editions, will consist of
eight tabloid pages of Spanish-language content and advertising.
The focus will be personal finance and technology, careers,
small business, and other business and finance information.
Stories will be selected, translated and paginated by a
team of editors, with access to the global content of the
The Journal already provides a weekly section to The
Washington Hispanic in D.C., and has published a daily
Spanish-language section, The Wall Street Journal Americas,
in Latin American partner newspapers since 1994.
PrensAmerica Corp., publisher of La Raza Newspaper, will
preview Chicago's first Spanish-language auto magazine at
the 2004 Chicago Auto Show, which runs Feb. 6-15.
La Raza Autos y Mas, a weekly, will target Chicago's
Hispanic auto consumer, covering new products, executive
changes and buying and maintenance tips.
Jorge Mederos, who is overseeing content and the five-person
editorial staff, can be reached at 773/273-2900 or [email protected].
Island Hispanics Targeted
In New York, a battle is shaping up for Hispanic readers
who live on the East End of Long Island.
The Southampton Press is about to start a Spanish-language
weekly, Nuestra Prensa, which will compete with El Independiente,
a weekly paper that ad man, restaurateur and East End newspaper
publisher Jerry Della Femina, plans to launch in April.
Isabel Sepulveda was named editor of Nuestra Prensa, which
will begin publishing in late March.
The Southampton Press also publishes the Press of Manorville
Della Femina, who also owns the Southampton Independent
, the East Hampton Independent and the Riverhead
Independent, plans to distribute 20,000 free copies
of El Independiente a week.
Joe Shaw, editor-in-chief of the Southampton Press, said
original stories will be written for the Spanish weekly
using bilingual reporters and freelancers.
Della Femina's paper will be largely based on translations
of his English-language weeklies. No editor has been named.
Barron's is starting a new continuing feature, "Hedge
Funds Monthly," to provide the latest news and information
on this type of investment.
Ed Finn, president/editor of Barron's, said editors and
reporters will regularly provide the following:
In-depth interviews with hedge-fund managers; data and analysis
on the performance of hedge funds; articles and columns
on fund strategies, and sectors of choice and cash flows.
CaribPR.com has been started as a press release distribution
service by veteran Guyanese journalist Felicia Persaud,
CEO of Hard Beat Comms. in Brooklyn, N.Y. ([email protected]).
Persaud said anyone can enter their press releases and
photos, pay a minimum of $100, and have their prepared information
disseminated to more than 300 media outlets in the U.S.
and the Caribbean.
Distribution information appears on the Hardbeat news.com
Night Sky is a new nationwide magazine about astronomy
that will hit newsstands on April 13.
The bimonthly magazine will be targeted at "backyard
astronomers," featuring a how-to section for telescope
owners; jargon-free science and hobby information, and overviews
of telescopes, accessories, books, software, and other astronomy
Kelly Beatty is editor of Night Sky, which will be published
by Sky & Telescope, which started publishing
The company is headquartered in Cambridge, Mass. 617/864-7360.
NYFWA PREZ SEEKS MEMBERS.
The new president of The New York Financial Writers Assn.
said his top priority is to enroll more journalists, PR
pros and students as members in the 66-year-old group.
Brad Finkelstein, who is an editor at National Mortgage
News, said he especially wants to stop the "slump"
in active membership, which has dipped to 200, its lowest
level in several years.
Finkelstein hopes to double the number of business/ financial
journalists during his term. "If each member brings
in just one person, we can do it," he said.
An interim financial report, which was issued at the annual
meeting on Jan. 28, shows the group has a total of 291 members.
That number include 32 "associates" who are mostly
PR pros; 43 "life" members, who pay no dues, and
16 "student" members, who get a reduced membership
Finkelstein said the drop in active members is largely
the result of a "purging" of individuals who have
not paid their annual dues in the past two years.
About 100 members have been dropped, including 50 last
year, for this reason, he said.
As a result of the dropoff, dues revenue went down to $9,835
this year from $11,140 in 2003.
From a financial standpoint, NYFWA expects to end its fiscal
year with a record-high bank balance. As of Jan. 26, the
interim report shows the group has $405,486 in checking
and savings accounts, up from $364,355 in 2003.
NEW SITE OFFERS
BUSINESS BEAT TIPS.
BusinessJournalism.org is now available as an online resource
for editors and reporters who cover business issues.
The new website is published by the Donald W. Reynolds
National Center for Business Journalism at the American
Press Institute in Reston, Va.
The site will provide daily business headlines, market
news, a business term glossary, job listings, tips for journalists,
organizations listings and academic programs.
The site also has articles from business journalism leaders,
such as Diana Henriques, The New York Times; Anne
Marie Squero, The Wall Street Journal; Jim Flanigan,
Los Angeles Times; Jason Zweig, Money, and
Mary Flannery, The Philadelphia Inquirer.
FASHION WIRE DAILY EXPANDS
Fashion Wire Daily, New York, a news service devoted to
fashion business news, trends and runway show coverage,
has introduced new columns.
Maya Singer has joined as managing editor to oversee news
and feature assignents.
Chip Cordelli, a Williamsburg, N.Y.-based writer, covers
lifestyle products and services for "Wired Life";
Paula Conway, a freelance travel writer, writes "Unwired,"
which focuses of lifestyle, leisure and travel topics, and
Jenny Peters and Liz Snead are writing and editing "Wired
West," a daily column covering the happenings of Hollywood
Edition, Feb. 11, 2004, Page 7
PRSA is actively
seeking homosexuals and lesbians as members of corporate
PR departments and PR firms, Society president Del Galloway
told a meeting with five PR reporters Jan. 30 at PRSA h.q.
had previously said in the January issue of Tactics,
PRSA's monthly, that the Society would "advance our
newly created Affinity Groups through partnerships with
gay and lesbian members, senior counselors and new professionals."
promoted diversity last year (meaning racial, ethnic, religious,
gender, age, etc.). This is the first year that sexual orientation
has been specifically mentioned.
said PRSA is not merely seeking new members with diverse
backgrounds but wants companies to hire PR pros with such
backgrounds, whether or not they are members of the Society.
In reply to a question, he said diversity is just being
sought in PR departments of organizations and in PR firms
and that PRSA is not pushing diversity throughout organizations.
said he wants the Society to be "inclusive."
O'Dwyer, of this NL, said actively seeking gay members could
be controversial, particularly among members who work for
religious groups. He noted the issue of gay marriage has
recently divided the Episcopal Church.
Byrum, 2003 PRSA president, responded that he is an Episcopalian
and that only 3% of Episcopalians have split from the main
Church because of the gay marriage issue.
Member Has `Problems
Olsen, managing director, PA department of The Church of
Jesus Christ of the Latter-Day Saints, Salt Lake City, said
active recruitment of gays as PRSA members is "problematic"
for him, personally.
said the Church's teaching is that sexual relations belong
in marriage between a man and a woman and nothing else is
allowed. "We all struggle to control anger, alcoholism
and other desires," he added.
a PRSA Assembly delegate, said a vote of the entire 19,600
membership of PRSA might be advisable on this issue rather
than just bringing it before the Assembly.
said the Mormon Church's stand is that if the Boy Scouts
of America started accepting known homosexuals as leaders,
it would withdraw support of the Scouts.
Questions by Reporters Allowed
PRSA board had invited PR reporters to h.q. for lunch and
to have "an open dialogue about industry issues and
for directors to give an overview of the Society's top initiatives."
Galloway emphasized it was "not a press conference."
directors and John Elsasser, Tactics editor, talked for
about 55 minutes of the 65-minute discussion period. Reporters
present were O Dwyer and Kevin McCauley of this NL; Fraser
Seitel, contributing editor to O'Dwyer publications; Julia
Hood, editor of PR Week, and Matt Schwartz, editor
of PR News.
and Byrum talked about the need for diversity and about
PRSA's main other initiatives this yearprofessional
development and advocacy.
talking about diversity were directors Rosanna Fiske and
development officer Robert Levy talked about that subject
as did Prof. Maria Russell, Society treasurer.
Press Barred from `Body of Knowledge
asked by O'Dwyer why neither PR Week, PR News nor any O'Dwyer
publication was in the "PR Body of Knowledge"
created by PRSA and which is studied for the APR exam, replied
that the type of knowledge in the PR trade press does not
constitute "PR knowledge" as defined either by
PRSA or the academic world.
attempt by O'Dwyer to ask why only 12 new APRs were created
in the last half of 2003 was rebuffed by Galloway. He indicated
it was too narrow a question by raising his hands, palms
up, and asking O'Dwyer to raise the level of his questions
to general topics.
in writing to some of the 20 written questions that O Dwyer
gave to the board, the board indicated the move to let students
join PRSA directly is not being pursued; whether COO Catherine
Bolton is seeking a new contract when her's expires Dec.
31, 2004 is not a discussable topic, and there are no plans
to publish the 1999 credibility study that found "PR
specialist" ranked 43 on a list of 46 spokespeople
nor the 1999 Fellows study of the value of APR in the job
marketplace (about nil).
Schwartz Communications is helping Unix-owner SCO Group
cope with the fallout from the Mydoom virus attack. Dave
Close, creative VP at Schwartz, told this NL his firm has
been handling press calls related to the virus since word
of the attack leaked last month. The company's website was
crippled by the attack and SCO has unveiled an alternate
site, www.thesco group.com, to operate during the virus
activity period through Feb. 12.
The company has offered
a $250K reward for information leading to the arrest and
conviction of conspirators of the virus.
BISHOP FLIES FROM BOEING
Larry Bishop, former
VP/IR and corporate communications for The Boeing Co., has
joined Beacon Advisors as a senior consultant, according
to Hud Englehart, a managing partner in the firm.
said Bishop will offer IR and PR counsel to senior managements
of client corporations.
Advisors, which was formed last fall by Tim Croasdaile,
Jim Hurley and Englehart, specializes in IR and financial
communications, corporate communication and positioning,
and crisis and change management.
Edition, Feb. 11, 2004 Page 8
The flight of high-tech,
accounting, engineering, legal, financial analysis and other
white-collar jobs to India and other lands is a concern
How long will it be before "dial-for-dollars"
U.S. PR pros are replaced by salespeople in India doing
the same "Did you get my release" phone calls?
India, with a "huge supply of English-speaking, educated,
dedicated workers, is happy to take knowledge-based jobs
for 10% to 20% of what U.S. employees receive," wrote
Publisher Mort Zuckerman in the Feb. 4 New York Daily
PR is the worst-performing category at Omnicom, WPP Group
and Interpublic, according to the financials of these margin-obsessed
PR's infrastructure has been weakened in recent years because
few new PR pros had any experience (or friends) in the media
and their ability to build such friendships has been hampered
by the hostility of management to reporters and the lack
of expense accounts that would help them to meet reporters.
Omnicom's John Wren recently bragged about boycotting the
entire press for 15 months. We re sure his thousands of
PR employees took notice.
The expected appointment
of PRSA COO Catherine Bolton to a longterm contract
when her's expires Dec. 31 raises the issue of what happened
the last time PRSA signed such a contract.
PRSA's 1999 executive committee headed by Sam Waltz as
president signed a five-year contract with Ray Gaulke as
COO starting on Jan. 1, 2000. But as of Jan. 1, 2001, Gaulke
was replaced by Bolton, who had been hired as chief PR officer.
She was the sole PR person at the Int l Copper Assn. Gaulke
got $230K in salary in 2000 plus $26K in pension. His expense
account in one year was $49,000.
Gaulke shifted to the PRSA Foundation where he was supposed
to get much of his pay working on the $2.6M KIDS anti-drug
drive funded by Johnson & Johnson. PRSA insider Pat
Jackson won a $200K pilot program. His "pressless"
program proposed two-hour workplace sessions at which parents
would learn how to warn their children about drugs.
J&J withdrew all funding as of July 31, 2001.
The sudden departure of Gaulke with four years still to
go on his contract and his replacement by a person hired
to do PR has never been explained. He continues to be paid
but the amount is a secret.
Sources now say that 2001 president Kathy Lewton and others
felt they had to stop the free-spending ways that characterized
the Gaulke years (1993-2000). PRSA's board also is responsible
for actions that have had a lasting impact on the Society.
One of the first actions of PRSA following the appointment
of Gaulke was killing the monthly PR Journal in its
50th year and replacing it with the monthly tabloid Tactics
and the quarterly Strategist.
Despite numerous claims that one or both would be profitable,
they lost, and continue to lose, about $1 million yearly.
PRJ had cost about $500K yearly.
Another bold stroke came in January 1995 when Gaulke told
the PR Service Council (formed to win a greater role for
exhibitors at national conferences) that PRSA was closing
its exhibit hall. That was the end not only of the exhibit
hall (for five years) but the Service Council. Regional
exhibit halls were mentioned as a possibility but none was
Gaulke said he wanted to have one overall sponsor of the
conference in Seattle that year such as IBM or Intel. No
such sponsor was ever obtained.
Many of the 38 exhibitors in 1994, who had paid $1,100
each, were incredulous at the cancellation of the exhibit
hall, a staple of conventions of all types.
Also in 1994, a $133,000 ad was taken in the Wall Street
Journal to publicize Silver Anvil winners. The ad solicited
inquiries. Less than 100 came in.
PRSA's spending on travel, hotels and meals for officers
and staff skyrocketed 261% from $274,441 in 1992 to $717,478
in 2000 while total expenses only grew 81% from $5.2M to
Gaulke and 1995 president John Beardsley, dissatisfied
with coverage of PR by U.S. trade publications, went twice
to London to encourage Haymarket to publish a U.S. edition
of PR Week, promising use of the 19,000 membership list
of PRSA for initial circulation. Gaulke, in a letter, urged
PRSA's advertisers to advertise in PRW and its members to
PRW competed with Tactics & Strategis for ads and soon
launched an awards contest that competed with the Society's
Silver Anvils. Steve Pisinski, '98 treasurer, said the help
to PRW was "neither board initiated nor board approved"
and called it improper.
Bath' Necessary in 1999-2000
The costs of't &S and other items were masked by balance
sheet maneuvers through much of the 1990s, resulting in
a $1.1 million "big bath" being taken in 1999
and 2000. PRSA didn't publish its 2000 Bluebook of
members. Money had been booked too early coming in (the
deferred dues account was drained from $904,787 in 1991
to $169,530 by 1995) and too late going out (many expenses,
especially on't &S, were deferred). The balance sheet
is still out of whack since PRSA books about $1.75M in dues
income before it's earned.
Board member Frank Stansberry had walked out of the 1999
meeting in Vancouver to protest the awarding of the Gaulke
contract by the executive committee without the approval
of the board.
If a new longterm contract is to be given to Bolton, the
entire board should approve of it and the members should
know the details of it.