The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, May 18, 2005, Page 1
FOUR VIE FOR MEDICARE PACT.
Ogilvy PR Worldwide,
Ketchum, American Education Development and GCI Group are
competing for a two-year multi-million dollar contract from
the Centers for Medicare and Medicaid Services.
work covers social marketing and planning, development and
delivery of consumer-based communications programs. The
contract provides for four one-year options and caps out
work on the Medicare overhaul and Prescription Drug Act
drew fire from the Government Accountability Office in 2004
and sparked an ongoing controversy over the use of video
ILLINOIS LOTTERY ACCEPTING
BIDS FOR PR.
The Illinois Lottery is collecting proposals for its $300K/year
PR account through the end of May. Hill & Knowlton,
which will defend the work, has handled the account for
the last eight years, according to Courtney Hill, manager
of small business for H&K/Chicago.
The Lottery issued an RFP for image management
and game support/winner awareness and is accepting
proposals through May 31. The four highest ranking firms
after the initial phase will continue through the interview
process for the three-year contract.
Crisis management is also a key aspect of the work. The
Lottery has been drawn into a state contract controversy
as an audit last week could not document $5.1 million in
ad spending with the Lotterys outside agency, R.J.
Dale Advertising & PR.
PAWLE SUCCEEDS KNOX
Oliver Pawle, vice chairman of UBS Investment Bank, has
been named chairman of Financial Dynamics. He succeeds Tony
Knox, who departs after 17 years to pursue other interests.
Knox, in a statement, said he felt the time was right
to pass on my chairman responsibilities to a new pair of
hands. He noted that since FD completed its management
buyout 18 months ago the firm has gone from strength
to strength on both sides of the Atlantic.
Pawle has been serving as chairman of FDs advisory
board for the past year. He had been at Price Waterhouse
and Baring Brothers prior to joining UBS.
Charles Watson remains CEO at FD.
Julia Jensen, VP of
corporate communications, Mattel, El Segundo, Calif.,
has joined Kmart/Sears, Troy, Mich., as VP-CC to replace
Lori McTavish, who has returned to DaimlerChrysler. Search
was by Jean Cardwell of Cardwell Enterprises.
F-H HELPS CHEVRON DROP
ChevronTexaco Corp., the fifth largest oil company in the
world, is using Fleishman-Hillards San Francisco office
to revert to its original name, Chevron Corp.
The petroleum giant said it would drop the name of its
2001 acquisition in order to put forth a clear, strong
and unified presence. Michael Barrett, a media advisor
in Chevrons policy, government and public affairs
unit, told ODwyers F-H was brought in to assist
in the re-branding efforts.
The company, founded in 1879 and acquired by Standard Oil
at the turn of the 20th century, took on the Chevron name
in 1977 and was the first company to strike oil in the Middle
East (in Saudi Arabia before World War II). It is based
in San Ramon, Calif.
The name change comes as Chevron has moved to buy Unocal
Corp. for $15.1 billion.
Chevron acquired Texaco in a $45 billion deal.
ompetitor BP dropped Amoco from its name in 1998 while
other oil giants like ExxonMobil and ConocoPhillips retain
the names of acquisitions.
GPG GETS $600K PACT
The Glover Park Group has inked a $600K contract with Turkey
to devise overall communications and media strategy aimed
at the general public. The firm also will advise the Turks
on their relationship with the White House and Congress.
GPGs contract plays up the importance of the website
of the Turkish Embassy (www.turkishembassy.org). The site
is referred to as an integral part of the Governments
outreach in the U.S.
The PR firm is responsible for updating the site, keeping
it relevant and effective as far as the Governments
PR efforts are concerned. GPG will issue a report
to the Embassy regarding its web work every
GPGs contract is separate from the $1.8 million contract
that The Livingston Group has with Turkey. That one-year
pact with former Speaker-designate Bob Livingstons
firm was renewed on March 1.
OMC MEETING JOURNEYS
The Omnicom annual stockholders meeting, which for many
years was held in New York where most security analysts,
the advertising/PR trade press and many financial publications
are based, will be held at 10 a.m., Tuesday, May 24, suite
1700, Harwood Center, 1999 Bryan st., Dallas.
The meeting was held in Los Angeles in 2003 and
(continued on page
Edition, May 18, 2005, Page 2
PENTAGON SUED FOR INFO
The Pentagon has erected a pretty good stone wall,
Chris Farrell, director of investigations at Judicial Watch,
told ODwyers, referring to JWs quest to
get info about the Rendon Groups work for the DOD.
The conservative Washington, D.C.-based legal watchdog
filed a Freedom of Information Act request in March `04,
asking for the names of entities contracted by the Pentagon
for strategic influence, perception management, strategic
information warfare and/or psychological operations
JW is especially concerned that the Pentagon may be propagandizing
the American public by backing Rendons Empower
Peace Internet educational campaign linking American
school age children with their counterparts in the Arab
EP may be a violation of the Smith-Mundt Act of 1948, which
forbids the domestic dissemination of U.S. government-developed
propaganda or official news, said Farrell.
The Pentagon confirmed receipt of JWs FOIA last April.
The next month it informed JW that its request was complex,
but the materials would be available by July 15.
JW filed suit on February 25, 2005 in U.S. District Court
for the District of Columbia seeking the Rendon records.
Rick Rendon called the charge that EP is a Pentagon tool
to spread propaganda absolutely not true. He
said EP is part of the firms 15-year-old youth marketing
practice. EP has zero funding from the Pentagon,
EDELMAN HELPS GE GO
Edelman handled General Electric CEO Jeff Immelts
May 9 presentation in Washington, D.C., where he detailed
the conglomerates ecomagination campaign
dedicated to reducing emissions of greenhouse gases and
producing green-friendly products.
A key element of ecomagination will be to double revenues
from eco-friendly products (solar panels, coal-gasification
plants and energy-efficient appliances) to $20 billion by
2010. The company also will lobby the Bush Administration
on the need for utilities to step up use of renewable energy
KEMPNER WEARS ANOTHER
MWW Group chief Michael Kempner is pulling double-duty as
CEO of The Financial Relations Board in a restructuring
move of Interpublics IR/financial PR unit. He is replacing
Donni Case, who has exited the president post.
Kempner told ODwyers there are no plans to
name a successor to Case. FRB, he said, will continue to
operate as a separate division aligned with the New Jersey-based-based
MWW. It had reported to Weber Shandwick.
Case, who had more than 30 years of experience at FRB,
succeeded the legendary Ted Pincus in `01. FRB has 60 staffers.
It had $26.6 million in fees in `97 and 244 staffers. FRB
was acquired by BSMG in `99, and merged into WS in `00.
PR WARNS SENATE ON VNR
PR industry representatives testified before a Congressional
subcommittee May 12 in support of a temporary amendment
requiring disclosure of government video new releases, but
warned the Senate about permanent legislation.
Judith Phair, president/CEO of PR Society of America, said
she was opposed to measures like frame-by-frame identification
of VNRs which are sought by Sens. John Kerry and Frank Lautenberg.
Phair said that PR exists as a profession today because
it has established a level of trust with the media and public
and that imposing rigid requirements and specifications
on the information we provide to the public will not best
serve the building of this trust.
Phair, Doug Simon, CEO of D S Simon Productions, and Barbara
Cochran, president of the Radio-Television News Directors
Association, told the Senate Committee on Commerce, Science
and Transportation they back Sen. Robert Byrds amendment
requiring clear notification in text or audio
during prepackaged news stories. The Senate passed that
addition to an emergency war supplemental bill on a 98-0
vote last week, but the amendment expires at the end of
Simon, Phair and Cochran do not support the Truth
in Broadcasting bill introduced by Sens. Kerry (D-Mass.)
and Lautenberg (D-N.J.) which was the subject of the committee
hearings. One particular concern is the bills requirement
that the FCC design the look and language of the notification
that would appear on government VNR footage. Simon, however,
differed with his colleagues in welcoming a government role
in pushing for broader disclosure.
Disclosure to the public is ultimately the responsibility
of broadcasters, Phair told the committee. Both Phair
and Cochran pointed to their groups ethics codes and
guidelines as adequate for government disclosure. Cochran
urged Congress not to respond to the mistakes of the
FITZGERALD MOVES TO
Patrick Fitzgerald, director of PR for General Nutrition
Centers, has taken a VP/PR post at Pittsburgh-based pharmaceutical
maker Mylan Laboratories.
He takes the PR reins from Heather Bresch, who has been
promoted to a new post of VP of strategic corporate development
in the office of CEO Robert Coury. Bresch has also recently
been elected to serve as chairman of the Generic Pharmaceutical
Fitzgerald held senior roles at Ketchum and Edelman and
was director of corporate communications and investor relations
for Midway Games for six years. At Midway, he handled communications
for the companys IPO and acquisition of Atari.
Mylan is a takeover target for Carl Icahn, the billionaire
financier who opposed a planned Mylan merger with King Pharmaceuticals
that fell apart earlier this year.
Fitzgerald told ODwyers that Mylan is not officially
using any outside PR regarding the Icahn matter, but he
said the company is consulting with advisors.
Edition, May 18, 2005, Page 3
N.Y. TIMES TOLD TO
RETHINK ITS COVERAGE.
An internal committee at The New York Times has given
its conclusions on how the paper could rebuild its credibility
as a news organization.
The committee, which was composed of 19 members, including
editors, reporters, a copy editor and a photographer, recommended
the paper increase coverage of middle America, rural areas
In part because the Timess editorial page is
clearly liberal, the news pages do need to make more effort
not to seem monolithic, the report said. We
should seek talented journalists who happen to have military
experience, who know rural America first hand, who are at
home in different faiths.
The panel also urged editors to write a regular column
dealing with matters concerning the paper.
It also said the paper should not keep quiet when it is
criticized and reporters and editors should be more easily
available through e-mail. It recommended the paper consider
creating a web forum to promote reader interaction.
It also urged reporters to use the Internet to provide
complete documents used in stories as well as transcripts
The report, which noted the paper published some 3,200
corrections last year, said reporters should confirm the
accuracy of articles with sources before publication and
solicit feedback afterward.
It also urged stricter demarcation between opinion and
Bill Keller, executive editor of the Times, told his staff
in an e-mail message that he lamented the clamor of
partisan critics on the right and left as well as
the shouting heads who have made denuciation of the
serious press part of their commercial shtick.
Then in an interview with Mark Jurkowitz, who covers media
for The Boston Globe, Keller said he had a basically
positive reaction to the idea that the Times become
more aggressive about defending itself.
But Keller said in his interview with Jurkowitz that he
does not want the paper to get into the spin room,
and I dont want us to get into a newsroom PR operation.
But I think a lot of times we ignore critics or react slowly,
so that (the criticisms) ricochet out to the world without
BINN HIRES EXEC. ED.
FOR CAPITOL FILE.
Anne Schroeder, who compiles the Names & Faces
column for The Washington Post, is joining Capitol File
as executive editor.
The new celebrity-oriented magazine, published by Jason
Binns Niche Media, is starting this September in Washington,
The new quarterly, which will distribute 70,000 copies
to homes in affluent zip code areas, will cover fashion,
food, culture, society, philanthrophy, real estate, and
home design, in addition to personality-driven stories about
movers and shakers in D.C.
Jamie Biden, a nephew of Sen. Joseph Biden (D-Del.), is
an associate editor of Capitol File.
a weekend gossip reporter for The New York Post,
has joined Womens Wear Daily to cover news
for the Eye page and to work on Scoop, an upcoming
SVP/corporate communications at Disney-ABC TV Group, has
resigned. She had been in her current position since Sept.
and with the company for two years.
number of commercial radio stations in the U.S. that have
a news/talk format, according to Arbitron. About 80% of
the U.S.s 13,838 terrestrial radio stations
are commercial stations.
percentage of Internet users that visited newspaper web
sites in March 2005, representing a total audience of nearly
44 million people, according to a new report by Nielsen/Net
Ratings for the Newspaper Assn. of America, which pointed
out it was a high water mark in online newspaper
percentage of web users in a new Burst! Media survey of
2,600 web users, who said they spend less time today, compared
to a year ago, with: TV (35.5%), or magazines (34.1%).
One-quarter of the respondents said they spent less time
listening to radio (27%), or reading newspapers (30%), compared
one of the largest online publishers of free tips and advice,
has added a Press Release Tips site, sponsored by eReleases,
a press release and distribution service company founded
in 1998 by Mickie Kennedy.
Readers can find answers to questions about writing, formatting
and sending press releases and advice on press release submission,
media relations, writing press releases, and other related
Chief Executive magazine,
based in Montvale, N.J., has hired Russ Mitchell as West
Bill Holstein, who is editor-in-chief of CE, said Mitchell,
who has over 20 years of experience covering business and
technology, will be responsible for increased coverage of
business interests unique to that region.
CE has a controlled circulation that reaches 42,000 CEOs
and their peers, and is published 10 times a year.
More information is available at chiefexecutive.net.
Toronto, which published its first issue on May 10, will
cover the spectrum of allergies, where more than 1.3 million
Canadians are affected by food allergies.
Gwen Smith, former editor of Elm Street magazine, is editor
of AL, and can be pitched at 416/760-8381; e-mail: [email protected]
(Media news continued
on next page)
Edition, May 18, 2005, Page 4
FRAIL JOINS SMITHSONIAN
AS SR. EDITOR.
Carey Winfrey, editor of Smithsonian magazine, has
named Tom Frail as senior editor.
Frail, formerly enterprise editor for The Washington
Post, will handle modern history and news features,
as well as essays and anniversary stories for the 35-year-old
monthly magazine, which focuses on history, science, travel
and the arts.
HANSEN NAMED EDITOR
OF WIRED NEWS.
Evan Hansen, who was senior editor at CNET News.com, has
joined Wired News in Waltham, Mass., as editor-in-chief
of the website, which covers the impact of technology, science
and the Internet on business, politics, culture and peoples
Mark McClusky, formerly an associate editor of Mobile
Magazine, has joined as games editor, and Kevin Poulsen,
previously news editor at SecurityFocus.com, joins the sites
staff as a senior reporter.
BERGENHEIM IS MONITORS
Richard Bergenheim was picked to replace Paul Van Slambrouck
as editor of The Christian Science Monitor on May
Bergenheim was editor-in-chief of The Christian Science
Publishing Society, where he set strategy and oversaw editorial
quality of the paper and of Monitor Radio.
Van Slambrouck, who was the Monitors editor since
July 2001, is going to San Francisco to work as one of the
papers senior editors and to write regularly on international
affairs and the impact of technology on society.
The trustees of the CSPS also revealed a goal of eliminating
the societys need for a subsidy from the churchs
general fund by 2008.
Bergenheim said concerns that the paper will not survive
a music journalist and best-selling author, is joining Blender
magazine in June as a senior critic.
Powers, who has been working for the Experience Music Project
in Seattle, is a former pop critic for The New York Times
and a senior editor at the Village Voice.
previously a senior producer for 48 Hours, was
named senior broadcast producer for CBS News The
currently the chief theater critic for The New York Sun
and a contributing editor for the New Republic, will
start reviewing plays and musicals for New York magazine
on June 1.
He replaces John Simon as chief theater critic for the magazine.
formerly a staff editor of The New York Times
op-ed page, was named deputy editorial page editor of The
Los Angeles Times.
He will be a member of the editorial board, which determines
the editorial page positions of the paper.
ORESKES TO EDIT IHT
FOR NYT CO.
Michael Oreskes was named executive editor of The International
No date was set as to when Oreskes, who is deputy managing
editor of the New York Times, will join the Paris-based
paper, which is owned by The New York Times Co.
Oreskes will succeed Walter Wells, who is retiring.
Alison Smale will stay on as managing editor of IHT, which
is also printed in Hong Kong.
GROUP GIVES TIPS ON
One of the benefits of belonging to Ed2010 is to find out
about impending editorial job openings.
Members of the group use an online form to tip off other
members about impending openings. The so-called whisper
jobs are printed in Ed2010s newsletter and archived
on its website, www.ed2010.com.
Chandra Czape, who is deputy editor of CosmoGirl! in New
York, is founder/president of Ed2010, which has grown in
the past seven years from about 15 wannabe editors to more
than 4,600 college students and magazine staffers at all
will publish a special 40th anniversary issue in September.
Dow Jones Newswires
is starting a commentary and analysis service focused on
the interest-rate swaps and foreign-exchange options markets
in G7 and Asia-Pacific countries.
The Commentary Plus service is produced by
a team of reporters and analysts in New York and Singapore,
led by William Mallard, who is news editor for the Money
desk in Singapore.
DJN says it delivers up to 10,000 news items a day to 390,000
financial professionals in 66 countries.
new online version will have a weekly column by Adam Hanft,
an ad/marketing, and social trends specialist who, the magazine
says, created the Flick Your Bic campaign.
The column, called The Sell, makes its debut
on May 18, will look at the ways in which consumers are
sold everything from media and entertainment
properties, to political arguments and sports.
Hanft can use ideas, pitches and suggestions for the column.
He can be reached by e-mail at [email protected].
The National Assn.
of Real Estate Editors will offer PR pros and freelance
writers the chance to pitch story ideas to journalists at
their annual conference, which starts June 2 at the Hilton
Washington Embassy hotel in D.C.
Journalists from 25 news outlets, including the Washington
Post, Chicago Tribune and New York Post, are
expected to participate in the Meet the Press
event, according to Mary Doyle-Kimball, executive director
Doyle-Kimball can be reached in Boca Raton, Fla., at 561/391-3599.
Edition, May 18, 2005, Page 7
OMC ON THE MOVE (cont'd
Atlanta last year.
John Wren had said the meeting was being moved around the
country to give local stockholders a chance to attend the
meeting and ask questions or make comments.
stockholders, including one holding the proxy for the O'Dwyer
Co., asked questions at the meeting in Atlanta. The meeting
in Los Angeles lasted "barely five minutes" and
"no questions were asked," AdWeek had reported.
proxy statement, delivered this week to stockholders, shows
that Wren was given a $4 million bonus in addition to his
salary of $1 million and $193,159 for "personal use
of aircraft hours." He received a $1 million bonus
has been mostly unavailable to the press since the June
12, 2002 Wall Street Journal's article on its finances
that resulted in the stock sliding from the $70's to the
$30's. Wren accused the WSJ of "numerous inaccuracies"
and improper "innuendos" but when challenged by
the paper to supply one, he did not respond.
only interview Wren has given since then was with William
Spain of CBS MarketWatch on Sept. 23, 2003. Wren said he
and other OMC employees had stopped talking to the press
after the WSJ piece and that they would concentrate on performance.
OMC stock rose almost to its previous point and Spain wrote
that Wren was a contender for MarketWatch's "CEO of
the Year." Another CEO received the award.
CEO Jean-Marie Dru got $27,435 for "family travel"
and BBDO CEO Andrew Robertson, $29,510 for "family
travel," according to the proxy.
category "other annual compensation," in which
aircraft use and car lease payments for officers or directors
are reported, is a new one in the proxy.
sold $3.4 million in stock Jan. 27, 2004. He exercised options
at $12.94 and sold 41,071 shares ("non open market")
at $84.36 per share.
owns 376,342 shares worth $32 million and has options on
2,650,000 other shares at various prices.
value of unexercised "in-the-money" options as
of Dec. 31, 2004 totaled $53.3 million (exercisable) and
$7.2 million (unexercisable).
OMC's stock price was $87.10 on Jan. 1, 2004 and ended the
year at $84.28. It is currently $85, or 22 points below
its high of $107 on Dec. 17, 1999.
Lauded in Proxy
In explaining the $4 million
bonus to Wren, the proxy says the compensation committee
considered OMC's financial performance in 2004 vs. 2003;
"Wren's individual contribution to that performance,
competitive compensation practices, and Mr. Wren's contribution
to non-financial attributes of OMC and its subsidiaries,
including corporate governance matters."
It further says: "Under
Mr. Wren's leadership, in comparing fiscal 2004 to fiscal
2003, the firm achieved diluted earnings per share growth
of 15.1%, net income growth of 14.7%, and worldwide revenue
growth of 13.1%. Mr. Wren's compensation for 2004 is a reflection
of his personal performance, and OMC's overall performance
INDUSTRY REP IS HURTING.
Speaker after speaker at the PRSA Health Academy conference
in Washington, D.C., May 4-6 told the 200 registrants that
the pharmaceutical industrys reputation is at an all
time low based on recent surveys.
The high price of drugs
was seen as the major PR problem of the industry.
Dr. Bernadine Healy, former
director of the National Institutes of Health and currently
a health columnist at US News & World Report,
said the drug industry is refusing to reveal its pricing
policies under the guise of protecting trade secrets.
[This report is based
on coverage by Jim Cameron of Cameron Communications, Darien,
Conn. Link to his full coverage is www.cameroncomments.blogspot.com.]
She said Americans are
unfairly socked with the brunt of drug development costs.
People in other countries, she added, should be shouldering
a much bigger share of this cost.
Healy said drug companies
should stop romancing doctors and serve the public better.
We need to build an alliance with doctors, not pander
to them with pens, free dinners and golf, she said.
Healy slammed doctors
who sit on review panels that consider drugs in which the
doctors themselves have a financial interest.
She also said that the
Food & Drug Administration has no authority to audit
the gray market that distributes 10% of all
the prescription drugs in the U.S.
She called upon drug companies
to embrace tracking technologies to get ahead
of the drug counterfeiting crisis rather than
waiting for the FDA to tell them to do this.
John Carey, senior correspondent
for Business Week based in D.C., said: The industrys
bad press is well-deserved, whether its generic conversion
shenanigans, hyping off-label use, or pricing.
He said the medias
influence on consumers is over-estimated. He
was critical of the medias tendency to over-dramatize
A new drug tends to be
a miracle drug and all drugs are over-priced,
The theme of the 16th
annual strategy and issues conference of the
Academy, which has 900 members, was Rebuilding Public
Confidence in the Healthcare Industry.
Stuart Seides, past president
of the Medical Society of D.C., complained about the presence
in doctors office of the invisible representatives
of managed care companies who second guess the doctors
Seides referred to lawyers
as an internal terrorist organization thats
a worse threat to our freedom than al Qaeda.
Edward Allera of the law
firm of Buchanan Ingersoll, told an afternoon panel on Healthcare
Ethics & Politics that the drug industry was not
being open and honest.
He said his clients sometimes
want to publicize phase one results that look promising
but that his firm has to tell them to report on all trials,
including those that were duds.
Internet Edition, May
18, 2005 Page 8
Drug industry PR was
said to be at an all-time low by speakers at the PRSA Health
Academy in Washington, D.C., May 4-6 (page one).
Michael Roth, Academy chair and head of communications
at Novartis, said the public has the wrong picture and it
is time for communicators to rebuild confidence in
the healthcare industry in America.
But when this NL called Roth and the PR heads of other
major drug companies, no one would respond to the charges
made at the conference.
PR was on the griddle
at a Senate hearing May 12. Douglas Simon of D S Simon Productions,
Judy Phair of PRSA, and Barbara Cochran of the Radio-TV
News Directors Assn. are against frame-by-frame identification
sought by Senators Frank Lautenburg (D-NJ) and John Kerry
Simon proposed that VNRs be sent to stations with graphic
identification at the start, another version without a graphic,
and another with continuous identification. Broadcasters
could pick one. The fear is the broadcasters will reduce
If so, the stations would be forced to do a lot of camera
work on their own since news shows dont like to have
too many talking heads.
We were astounded when Phair said PR exists as a
profession today because it has established a level of trust
with the media and public.
The $150K study funded by PRSA and the Rockefeller Foundation,
published in 1999, found PR specialist to rank
43 out of 45 information sources in believability.
That study was done by professors at Duke and Columbia universities.
Contrary to what Phair said, media/PR relations seem to
be at an all time low.
The Feb. 13 article by Timothy OBrien in the New
York Times (Spin Frenzy: PRs Bad Press)
is only the latest indication of this. We hope Phair will
provide some examples of the level of trust
Kerry attacked the view that VNRs should be treated no
differently than printed press releases.
With the latter, he said, there is no chance for an
actor pretending to be a reporter to speak directly
to the public.
Our Exhibit A of the
mistrust between business and the media is the biggest owner
of PR, Omnicom, which says its PR firms do $1 billion of
business a year.
CEO John Wren, who reminds us of the runaway bride,
is now running to Dallas for an annual stockholders meeting
May 24 that should be in New York, where the ad/PR trade
press and most security analysts are located. It was in
New York for many years.
He said he is moving the meeting around the U.S. to talk
to stockholders. But no questions at all were asked at the
2003 meeting in Los Angeles (which AdWeek said lasted barely
five minutes) and only three spoke at last years
meeting in Atlanta (one of them a reporter for this NL).
Wren has given one interview since the June 12, 2002 Wall
Street Journal story knocked about 40 points off OMC. The
stock, as he noted with satisfaction, rose to its previous
level of about $80 without him or anyone at OMC talking
to the press.
Wrens message is clear: the best thing to do is duck
the press. What does this say for the PR industry? Is this
ducking what America stands foropen public discussion?
We think hes avoiding the press because he would
have to explain why OMC, after dozens of quarters in a row
of higher sales and earnings, is still about $25 below its
high of $107 in 1999.
It hasnt settled the stockholder suits arising from
its sudden stock decline in 2002 and says it is unable
to determine the outcome of these cases and the effect on
our financial position...
Wren, who got his bonus raised to $4M in 2004 (when the
stock declined about $3 to $84.28) from $1M in 2003, sold
about $10M of OMC stock in 2004. His company income also
includes $193,159 for personal use of aircraft hours.
Insider sales, totaling about $40M in 2004, have hurt the
stocks credibility on Wall Street.
Two of OMCs PR firms, Ketchum and Fleishman-Hillard,
have made lots of news lately. He should discuss those situations.
Relations Institute revenues dipped a half a percent to
$4,947,412 but gain in assets was $265,830 vs. a
decline of $156,395 in 2003.
Spending on PR/marketing was cut from $123K to $11K; membership
development from $50K to $16K; website from $78K to $38K,
and chapter development from $101K to $76K. NIRI, which
is about half the size of PRSA, which has $10M in revenues,
spends about $70K yearly on travel and meals while PRSA
spends about $500K yearly on this. NIRI, like PRSA, books
dues fully when billed, considering them a gift
that cannot be returned.
PR Reporter, started
in 1958 by PR pro Charles Prout using a typewriter
on his kitchen table, was given to Ragan Comms. in
02 with the hope that the weekly would continue. Ragan
turned it into a monthly but publication has ceased. Bob
Barbour wrote it until 75 when Pat Jackson and Otto
Lerbinger took over.
PRSA reported that
the trip of Judy Phair, Del Galloway, John Paluszek and
Catherine Bolton to China March 2-14 cost the Society
about $5,500 since the four paid many of their own expenses.
Phair sent two dispatches to the PRSA website but no articles
on the trip have appeared in PR Tactics of PRSA... China
has just jailed a journalist for ten years for improper
Interpublic lost its
General Motors U.S. media buying account to Publicis.
It still cant set a date for its annual meeting because
of accounting problems.