The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, March 23, 2005, Page 1
MCGWIRE TURNS TO LEADER.
Mark McGwire, the
burly ex-slugger who testified March 17 in Congress
probe of steroids in baseball, has brought in Leader Enterprises,
an Atlanta and Los Angeles-based PR and integrated marketing
Altieri, a former Hill & Knowlton and Los Angeles Lakers
PR exec, is serving as McGwires media spokesman and
advisor. Altieri did not return a request for comment from
has handled PR assignments with sports stars such as LeBron
James, Cal Ripken Jr. and Sr. and Maria Shaparova.
has been drawn into the steroid controversy by news reports
and a book by former teammate Jose Canseco linking him to
Marston Assocs. is Major League Baseballs main PR
firm. RMA told ODwyers all steroid-related questions
are being referred to MLBs senior VP of PR, Rich Levin.
office said the steroid issue is being handled in-house.
LIEBERMAN JOINS H&K.
Hadassah Lieberman, wife of Connecticut Senator, Joe, has
joined Hill & Knowlton as senior counselor in its Washington,
D.C., office. She will serve in the WPP Group units
health & pharmaceutical group.
Lieberman has held posts at Saint Raphael Hospital (New
Haven), American Committee for Shaare Zedek Medical Center
(Jerusalem), APCO Assocs., Pfizer and Hoffmann-La Roche.
She reports to Anna McCollister-Slipp, who recently joined
from Manning, Selvage & Lee. Slipp was PA director at
Radio Free Europe/Radio Liberty and the Cato Institute.
mess may result in the postponement of its May annual
meeting, according to a statement from IPG.
The troubled ad/PR conglom, which announced March 11 that
it needed more time to release its 10-K, now says it needs
more time to release its first-quarter and possibly second-quarter
CEO Michael Roth said the company must conduct "extensive
manual review procedures to augment our existing control
processes in order to protect the integrity of our financial
Roth also said he wants to reassure clients that the "filing
delay is not related to the high quality of our professional
F-H STICKS UP
FOR CANADAS BEEF.
The Alberta Beef Producers has hired Fleishman-Hillard Government
Relations to spearhead its drive to reopen the U.S. market
to Canadian beef.
The U.S., wary of a Mad Cow breakout, slammed shut its
border following the `03 discovery of an Alberta cow infected
with bovine spongiform encephalopathy.
The U.S. Department of Agriculture had planned to okay
the import of Albertas beef on March 7, but that plan
was put on ice following a lawsuit filed March 2 by ranchers
Welles Orr, senior VP in FHGRs Washington, D.C.,
office, told ODwyers there is no timeline
to determine how the legal squabble will play out. Jon Huenemann,
another FHGR senior VP in D.C., works with Orr on the account.
They are supported by staffers in Ottawa.
The Canadian Cattlemen for Fair Trade, on March 16, filed
a $300M claim against the U.S. Government under the North
American Free Trade Agreement.
CHRISTIE BOLSTERS RF/D.C.
Ruder Finn, in another move to boost its Washington, D.C.,
office, has hired Ron Christie as executive VP/director
of global government affairs. The former Bush Administration
official joins from Patton Boggs, where he was of
Christie served as deputy assistant for domestic policy
to Vice President Dick Cheney, handling healthcare, tax,
and budget issues. He also served as special assistant to
President George Bush and acting director of USA Freedom
Kathy Bloomgarden, co-CEO of RF, says Christie will strengthen
its ability to counsel clients at the highest level.
Christie joins the firm on April 4, the day Fleishman-Hillard
veteran Barbara Shipley reports to duty as managing director
VNR FIRMS WILL MEET
CEOs of the major video news release producers, tackling
the issue of on-air disclosure of sources of their products,
which has been raised by the Federal government and New
York Times, say they will meet any new standards that are
Medialinks Laurence Moskowitz said his firm will
happily meet any higher standards of disclosure
for VNRs produced for government agencies.
This debate is purely about government agency VNRs
and not those for private industry, he said.
story continues on 7)
Edition, March 23, 2005, Page 2
WICKHAM EXITS H-P
Pamela Wickham, VP of corporate communications, for Hewlett
Packard Co., has moved on to Raytheon after three months
at the technology giant.
Robert Sherbin, VP of corporate media relations for HP,
has been elevated to acting head of corporate comms., in
addition to his other duties, a spokesman told ODwyers.
[Sherbin was formerly VP of corporate communications at
Wickham, 42, takes the title of VP of communications and
corporate affairs for Raytheon, following the late 04
resignation of Phyllis Piano from that role.
Both Piano and Wickham have strong ties to GE.
Wickham, who began her career with Ketchum and Porter Novelli,
was executive VP for GE Healthcare in the U.K. prior to
She held several other corporate PR posts at GE. Piano,
48, was at GE for 15 years and Raytheon for six.
Tim Marklein also bolted a top PR slot at HP last fall
for an EVP/GM slot at Weber Shandwick.
SEN. SEEKS POLITICAL
Senator Daniel Inouye wants the Federal Communications Commission
to determine whether TV stations are violating rules requiring
attribution for political broadcast matter or
the discussion of a controversial issue of public
importance when they air government-created video
The Hawaii Democrat, who is co-chairman of the Senate Committee
of Commerce, Science and Trans., notes that most of the
VNR debate has focused on whether the Bush Administration
violated restrictions on using taxpayer money for publicity
However, equally as serious is growing evidence that
certain broadcasters are editing government-created VNRs
to make it appear as if such information is the result of
independent news-gathering, Inouye wrote in a letter
to FCC head Michael Powell.
He asks the FCC to determine if accepting VNRs violates
the Communication Acts ban on stations acceptance
of money, service, or other valuable consideration
for the airing of content.
Iraqex, the investment group set up to pursue business in
Iraq which holds a $6M, three-year contract to handle PR
for the U.S.-led military force there, has changed its name
to Lincoln Group, a reflection of its holding company, Lincoln
LG has also begun publishing the Iraq Business Journal
(www.iraqbusinessjournal.com), a monthly publication on
contract opportunities, life in Iraq and classifieds.
The recent edition has a Q&A with Grand Ayatollah Ali
al-Sistani, who said he has no problem with foreign investment
rebuilding the country, as long as an investor is a partner
with Iraqis and not part of the occupation forces
or someone taking advantage of any instability
in the country.
LG is also still looking for interns that have media and
PR experience for 2-3 month periods in Baghdad. Food, lodging,
insurance and a stipend are provided.
Omnicom, releasing its balance sheet on March 15, the last
day allowed by SEC regulations, reported that goodwill rose
to $6.41 billion as of Dec. 31, 2004, from $5.88B as of
a year earlier. It was $3.9B in 2001 and $2.9B in 2000.
Goodwill is the amount paid for acquisitions over and above
tangible assets such as cash on hand, equipment and furnishings.
OMC owns all or part of more than 1,500 ad agencies, PR
firms and numerous other types of companies.
A new fair value approach to depreciation of
intangible assets was allowed by the SEC two years ago,
letting companies subtract nothing from their earnings for
depreciation if they deemed there has been no impairment
in the value of their acquisitions.
While OMC deducted $497M from its income in 2001 for depreciation
of goodwill and other intangibles and $410M the year before,
it deducted nothing for goodwill depreciation in 2004 and
$110M for depreciation of intangibles in 2004.
Whereas it used to report goodwill and other intangibles
on one line, it now has separated these into goodwill
($6.41B showing no depreciation) and intangibles,
showing amortization of $164M in 2004, leaving $110M in
While OMC publicized its revenues and earnings on Feb.
22, including holding a teleconference for analysts and
issuing a press release, it issued no releases for its balance
sheet and scheduled no conference call.
Standards of the National Investor Relations Institute
call for companies to supply balance sheets at the same
time they report earnings.
OMCs long term debt is $2.33B and shareholders
equity is $4.07B. Tangible net equity, which is equity minus
the $6.4B in goodwill, is -$2.33B. The companys stock
is trading at about $87, which is 20 points lower than its
high of $107 on Dec. 17, 1999.
OMCs annual meeting will be May 24 in Dallas, the
third year in a row it is not in New York.
KEKST, SC GUIDE
Kekst & Co. and Stanton Crenshaw are handling the three-way
$6.6 billion takeover of Toys R Us.
Kekst represents investment firm Kohlberg Kravis Roberts
& Co. and real estate developer Vornado Realty Trust.
Alex Stanton counsels equity firm Bain Capital.
The deal, according to The New York Times, may be
as much about real estate as toys. Toys owns valuable
leases on its 1,500-plus stores. On the retail front, the
Wayne, N.J.-based company has been hit by Wal-Mart, which
now controls a quarter of the toy market.
Frank Rich, in another
New York Times attack on PR, slammed Enron and Ketchums
$97M in govt contracts in his March 20 column. He
believes Susan Molinari, head of Ketchums lobbying
unit, should disclose her PR ties on talk shows, which often
only ID her as a former congresswoman.
The brakes are off, writes Rich, and
before long, the government could have a larger budget for
fake news than actual television news divisions have for
Edition, March 23, 2005, Page 3
PR PRO PUBLISHES
MEDIA SURVIVAL GUIDES.
Karen Friedman, a former reporter for ABC-TVs Action
News in Philadelphia, who operates a media training
firm, has written a series of how-to manuals for corporate
The five books offer tips on doing an interview, handling
tough questions and preparing a presentation.
These survival guides are their cliff notes,
said Friedman, who was featured in a Feb. 2003 Media
Workshop, a column that appears in ODwyers
PR Services Report magazine.
Information about obtaining the guides is available at
www.karenfriedman.com, or by calling KFE at 610/292-9780.
REAL SIMPLE TOPS THE
These publications made The Hot List, Media
Week magazines annual list of the top 10 magazines:
1. Real Simple; 2. Lucky; 3. Us Weekly;
4. In Style; 5. O, The Oprah Magazine; 6.
Shape; 7. Mens Health; 8. ESPN The
Magazine; 9. Vanity Fair, and 10. Parenting.
The listing is based on circulation and advertising performance
during the last three years. Greatest weight is given to
performance in the last year.
previously senior associate editor at Vogue, covering
both beauty and fashion news, has joined Elle.
was recently named editorial director of the Kelley Blue
Book, and website, www.kbb.com.
who produced Primetime Live, has resigned to
develop and produce other programs for ABC News.
currently executive producer of 20/20, will
replace Ross on an interim basis.
BLOGS CLOSE IN ON
Traditional journalism, with its focus on substaniating
facts, now competes with other models of news, such as Blogs.
These faster, cheaper and less accurate alternatives have
distinct advantages in the marketplace, according to a new
study on the state of journalism in America.
Moreover, blogs, or personal weblogs, have added to this
challenge with a philosophy: publish first and assume the
vertification process will occur in the response and argument
The study, The State of the American News Media,
2005 was produced by the Project for Excellence in
Journalism, a researh institute affiliated with the Columbia
Univ. graduate school of journalism and funded by the Pew
As traditional media continue to lose audience, the report
suggests news organizations will be tempted to cut back
on news gathering and change standards to compete with the
In effect, Americans are shifting from being consumers
of news to pro-active partners in creating their own personalized
news account each day, and traditional journalism is only
part of the mix, said project director Tom Rosenstiel.
This amounts to a new kind of American citizenship
with more responsibilities for the consumer.
AT HOME WITH CHRIS MADDEN
Hachette Filipacchi Media has chosen At Home With Chris
Madden as the title of a new magazine featuring the
home designer, who hosted her own TV show for eight seasons,
and authored 16 books.
The new magazine will make its debut on May 3.
Madden will serve as editorial director, working alongside
Olivia Monjo, who is editor-in-chief of Hachettes
Special Interest Publications division.
METRO TO START FREE
DAILIES IN CANADA.
Media rivals Torstar Corp. and CanWest MediaWorks in Toronto
have formed a venture with Metro International SA of Sweden
to publish free English-language daily newspapers in several
Canadian cities, aimed at the commuter market.
The venture began on March 14 with the launch of Metro
Vancouver, with initial daily distribution of 145,000 in
the Vancouver area.
Thirty-five Metro editions are published in more than 100
cities in 17 countries in 16 languages across Europe, North
and South America and Asia.
The New York Times Co. completed a deal on March 11 to
acquire Metros Boston daily paper for $1.6 million.
number of journalists killed in the line of duty in 2004,
the most for the profession in a decade, according to a
survey published by the Committee to Protect Journalists,
which documents that 23 journalists and 16 media support
staff were killed in Iraq.
number of press releases viewed in the last 28 days on PR
Newswire for Journalists website.
average number of hours each day that kids ages 8 to 18
are either watching TV, playing video games, or on the computer,
according to a study released by the Kaiser Family Foundation.
year in which Philip Meyer, author of The Vanishing
Newspaper: Saving Journalism in the Information Age,
predicts the last newspaper reader will croak.
WWDScoop, a high-end
magazine published by WWD Media World, a part of Fairchild
Publications, will go on sale for the first time on March
21 in major cities around the world.
The New York-based tabloid glossy calls itself an
insiders guide for the fasion set.
(Media news continued
on next page)
Edition, March 23, 2005, Page 4
Deidre Depke was promoted to editor of Newsweek.com, where
she will oversee the editorial operations of the website
and its staff of 15 editors and producers.
Previously a senior editor, Depke helped relaunch Newsweek.com
as a part of the alliance between The Washington Post Co.,
Newsweek, NBC and MSNBC,
In 2005, Depke has expanded the site with new sections,
including Health Beat on Tuesdays and Entertainment
Extra on Fridays.
RICH WRITES AGAIN
FOR OP-ED PAGE.
Frank Rich, who is associate editor and Sunday arts and
leisure columnist at The New York Times, is returning
to the op-ed page as a columnist.
Rich will write essay length columns on the intersection
of news and popular culture.
ATTACKS VOGUE EDITOR.
Anna Wintour, editor-in-chief of Vogue, was attacked
by PETA at the Paris Fashion Week show held last weekend
at Le Carrousel du Louvre.
A young woman hit Wintour with a tofu pie reportedly saying:
The animal rights activists have recently stepped up their
campaign against celebrities and designers who use and wear
TIME MAY BRING BACK
Look magazine may be revived by Time Inc. as a magazine
for movie fans, especially males.
A test issue of the new Look will be sent to a small percentage
of Entertainment Weeks subscribers to judge
reader reaction before making a decision on whether to publish
on a regular basis.
FINANCIAL EDITOR DIES.
Frank Schnaue, 57, longtime financial editor for United
Press International in New York, died Mar. 13 at his home
in Bellport, N.Y., on Long Island.
After UPI closed its financial office in N.Y. in 2003,
Schnaue continued to write copy for the UPI financial report
as a contractor.
He was a member of the N.Y. Financial Writers Assn.
FORBES PICKS TOP
CORPORATE HATE SITES.
Forbes.com has picked the top corporate hate
These perennially peeved people buildand obsessively
maintainsites devoted exclusively to complaining about
their least favorite corporations, said Charles Wolrich,
a reporter for Forbes.com.
The top sites are:
4. MS-Eradication.org (Microsoft)
8. Unried.com (United Airlines)
9. UnitedPackageSmashers.com (United Parcel Service)
Frequency of updates and ease of use were among criteria
used to evaluate the sites.
the famous New York PR pro, does not use e-mail to pitch
I pitch via phone first, he told Jeremy Pepper,
whose Pop!PR blog is syndicated by WebPro News. Reporters
dont want to be inundated with weak pitches, and e-mail
is an easy way out for pitching weak pitches.
The Chicago Tribune
has hired Phil Rosenthal, who was TV critic at the The
Chicago Sun-Times, as media columnist, replacing Jim
Kirk, who was recently promoted to associate managing editor,
based in Oxnard, Calif., will make its publishing debut
on March 23.
The weekly paper will target the growing Spanish-language
population in central Californias Ventura and Santa
Barbara counties with editorial content. It will also have
stories of interest from the Los Angeles metropolitan area
will also be included.
Mayo Comms., Canoga Park, Calif., is handling publicity
for the paper, which is published by Josie Tizcareno, who
can be reached at 805/890-6104.
REPORTER TO WRITE
A BOOK ABOUT TRUMP.
Warner Business Books plans to publish a book by New York
Times reporter Timothy OBrien titled Trumpworld:
The Art of Being the Donald.
OBrien, who has covered Trump for years, has reportedly
gotten a mid-six-figure advance from the publisher.
The book is slated for publication in Oct. 2005.
was named senior editor at Resorts & Great Hotels, a
new group formed by World Publications in Santa Barbara,
Calif., that offers an array of print, event and online
marketing services and products to the luxury hotel and
has joined Modern Bride as fashion editor, and Monica
Cotto, previously fashion editor for the YM Your
Prom Spring 2005 edition, has succeed Alvarez as fashion
editor of Elegant Bride.
Both magazines are published by Fairchild Publications.
a weekly columnist for The Fairfield (Conn.) Citizen
news and a contributing writer to the Fairfield County
Business Journal, among others, has joined Cashman &
Katz Integrated Communications in Glastonbury, Conn., as
VP of PR.
He is a former general manager of New York-based Stanton
Crenshaws Stamford office.
Edition, March 23, 2005, Page 7
VNR FIRMS WILL
MEET STANDARDS (contd)
The General Accountability
Office has called for disclosure within the body of VNRs
as opposed to TV announcers identifying the sources of the
video at the beginning or end of a segment.
of the VNR executives on an ODwyer teleconference
March 16 wondered if they would have to label every
frame in a VNR. They felt this would cut down on usage
by TV stations.
who said he feels the NYT story was totally political,
noted that there is an argument about VNR signage going
on between the GAO on the one side, and the Office of Management
and Budget and the Justice Dept., on the other. He urged
the VNR industry not to get involved.
GAO wants signage within the VNRs while Justice says the
GAO has no right to make rules for government agencies.
says the governments propaganda prohibition rule does
not apply where there is no advocacy of a particular
speaking were VNR producers Stan Zeitlin of West Glen Communications;
Peter Wengryn of Video Monitoring Services; Kevin Foley
of KEF Media Assocs.; Dan Johnson of DWJ Television, and
Doug Simon, D S Simon Productions.
Wengryn, president and
CEO of broadcast monitoring giant VMS, said elected government
officials have a duty to present their positions on public
matters and that the public must consider all sources of
information in making judgments about them.
They need more than thirty-second
sound bites to explain themselves, he said, noting
they use press conferences, releases, VNRs and other tools.
of broadcasters, he said, is to present a balanced
story to viewers and this includes identifying the
sources of materials. VMS tracks news broadcasts in the
top 150 markets, resulting in 65,000 hours of recordings
Delivers New Blast
The teleconference came
three days after an NYT first page blast March 13 on Prepackaged
News and on the same day that the NYT editorialized
on Counterfeit News. The paper said 20+ federal
agencies, including the State Dept. and the Defense Dept.,
now create fake news clips.
The $254 million spent
by the Bush Administration on VNRs and other PR efforts
in its first four years is double the amount spent by the
Clinton Administration, said the NYT.
Zeitlin said No
one seems to be concerned when the Centers for Disease Control
puts out a tremendous amount of information on illnesses
and threats to the nations health.
Most of the VNR producers
on the call said it is up to the stations to tell viewers
that VNR firms are supplying all or part of the materials.
They said most of their
work is for private industry. They also blamed politics
for the NYTs critical articles on the VNR industry
the liberal NYT vs. the conservative Bush Administration.
Blame Media Simon
Simon said VNR firms should
not blame TV producers. We rely on them to use our
Foley said the Bush Administration has done a masterful
job in using PR to advance its various agendas, VNRs being
one of its tools. He wondered if pressures
are being put on the stations to air the pro-Bush VNRs.
Other panelists disagreed.
The FCC is watching TV
stations like never before for any transgressions,
Johnson wondered why the
March 13 NYT article did not mention CNNs use of VNRs
in 2004 that were not properly identified.
Some said the propaganda
in favor of the war against Kuwait in 1991-92 had also put
the spotlight on VNRs and had more of an effect on the VNR
business then. TV Guide did a cover story on Fake
News, noted Moskowitz.
OPEN PRSA ELECTIONS.
Dena Winokur, Ph.D., president of PRSA/New York, is a strong
supporter of ending the APR rule for national PRSA
This rule, in place since 1973, blocks 80% of PRSAs
20,000 members from seeking office. Candidates must not
only be accredited but must have served as the head of a
chapter, district or section or have voted in an Assembly.
PRSA probably draws its
leaders from less than 1,000 members who are both interested
and eligible, say critics of the APR rule.
Said Winokur, a full-time
professor at the New York Institute of Technology and coordinator
of the Communications Arts Dept.: All dues-paying
members should be able to seek national office, thus drawing
candidates from a larger pool of talent that would include
the top PR professionals in the U.S.
Judy Phair, national president,
has said she will not move to open nominations this spring
unless she hears from members and leaders nationwide.
Wallace at Big Apple Awards
Mike Wallace, 60
Minutes anchor, will speak at the Big Apple
Awards May 23 at the Rainbow Room. The event has been shifted
to the evening.
PRSA/NY is expanding its
website and making it interactive (able to handle reservations
and online payments). It will carry 20 pages of copy and
Membership increased by 6% in 2004 to 686.
Winokur set up new committees
on diversity, ethics, professional services, sole practitioner/small
businesses, and young professionals. She is bringing back
the Newsmakers Luncheons.
Winokur is the first female
full-time academician to head PRSA/NY.
Previously, she was a
VP at Burson-Marsteller and Downey, Weeks & Toomey,
and was PR district manager for AT&T.
At the Institute of Technology,
she set up a student-staffed production house and agency.
Clients include the West
Side C of C, Israeli Consulate, Lexington School for the
Deaf, and the Foreign Press Assn.
Internet Edition, March
23, 2005 Page 8
One of the arguments
in the video news release controversy (page one)
is that its o.k. for TV stations to use factual
VNRs without stating the origin of the materials.
The Bush Administration, rejecting an advisory by the General
Accounting Office that demanded identification as part of
a VNR, said the GAO had overstepped its mission.
Memos from the Justice Dept. and Office of Management and
Budget were circulated saying the prohibition (against
propaganda) does not apply where there is no particular
advocacy of a particular viewpoint.
Our view is that the set of facts presented
by one interested party can be very different from the set
of facts presented by another party.
For instance, Secretary of State Colin Powell presented
to the U.N. Feb. 3, 2003 a large number of facts
in support of the thesis that Iraq was an imminent danger
to the U.S., because it had weapons of mass destruction.
Critics of the speech have since labeled just about everything
that Powell said as either false or misleading. Another
set of facts, that Iraq was under tight control on all sides
and was giving arms inspectors free rein, was not presented.
The New York Times
was especially harsh about the Administration, the VNR industry
and TV stations in an editorial March 16 headlined, And
Now, the Counterfeit News. We feel its a little
suspect for a newspaper to be rapping TV stations.
Although some government VNRs are clearly... propaganda,
said the editorial, too many TV stations run
them anyway, without any hint of where they came from.
TV stations cheapen the main thing they have
to offer, says the NYT their credibility.
Major features on the controversy ran in the Feb. 13 and
March 13 NYT and Stuart Elliotts ad column has also
covered the subject.
Columnist Frank Rich on March 20 noted that PR giant
Ketchum worked for Andersen, former CPA firm of Enron, and
demanded that Ketchums lobbying chief Susan Molinari
identify herself as being with Ketchum. She is invariably
described as a `former Republican Congresswoman or
a CNBC political analyst, he writes.
The NYT has assigned an expert in crime coverage to write
on PR Timothy L. OBrien, author of the Feb.
13 Sunday Spinning Frenzy piece.
OBrien, author of Bad Bet: The Inside Story of
the Glamour, Glitz and Danger of Americas Gambling
Industry, also wrote the front-page blockbuster Aug.
19, 1999 NYT story on the billions of dollars that had been
channeled through the Bank of New York by alleged Russian
OBrien, in a later story, wondered about the veracity
of some of his sources. The story was attacked by the American
Russian Law Institute.
The different sides of this are searchable on Google under
OBriens name. He left the NYT in April 2000
to join Tina Browns Talk magazine but rejoined the
NYT in early 2003.
Warner Business Books in October will publish his new book:
Trumpworld: The Art of Being the Donald. Warner says it
is thrilled to be publishing this blockbuster book,
calling it an eye-opening, jaw-dropping, first-class
piece of journalism.
The NYT usually asks its reporters to give it the right
to publish any books they write, but OBrien said he
got permission to publish his book via Warner.
The NYT, while sermonizing
about the ethics of PR, has its own ethical issues.
The Prudential Equity Group this month criticized the NYT
and its Boston Globe unit for leaving out, respectively,
20 and 27 days in calculating average circulation. Most
papers leave out two days, noted Pru, which put the Globe
and the Denver Post at the bottom of its quality of
circulation scale that rated 50 major dailies.
NYT VP-CC Catherine Mathis said omit days was
a minor area and that the Pru study had a flawed
methodology and material inaccuracies.
A big ethical issue at the NYT is its two classes of stock,
with only the small number of B shares (839,836)
held by insiders having the right to elect a majority on
the board. Disenfranchised are the holders of 144 million
Investment groups such as TIAA-CREF ($280 billion teachers
pension) and CalPERS ($180B California pension system) and
corporate governance specialists condemn such unequal voting
rights and are pushing for one share/one vote.
The NYT this month borrowed $500 million. Its debt is approaching
$2 billion. The stock, which was $50 in 2000, was $36 March
18, a decline of 20% on the year and off 24% vs. S&P
500. NYT has spent $629M buying its own stock in the past
three years including $293M spent for this in 2004. This
activity helps shore up the price of a stock.
The NYT has never done an in-depth piece on the finances
of Omnicom such as was done by the Wall Street Journal June
There are A
and B members of PRSA, the former being the
small number of APRs who have held power since 1973,
blocking non-APRs (80% of the membership) from holding national
The 2004 Assembly voted to let in non-APRs as delegates
but the APRs, among the most politically active in many
chapters, have not faded away.
Chapter websites show that almost 100% of those elected
as 2005 Assembly delegates are APR, including National Capitals
10 delegates; the eight from Georgia; five from L.A.; five
from Houston; five from Colorado, and four from Dallas.