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Internet Edition, December 6, 2006, Page 1


California has moved to scuttle its $28M “5 a Day” campaign after federal guidelines were revamped last year calling for low-income people to eat more than five servings of healthful foods a day.

As a result, the California Nutrition Network for Healthy, Active Families, the state entity which oversees that social marketing effort, has issued an RFP for a firm to develop a new campaign, including media work, advertising and PR. The budget is a whopping $36M, or $1M for each month of the term, which is expected to stretch from April 2007 through early 2010.

Hill & Knowlton teamed with Runyon Saltzman & Einhorn to win last review for the “5 a Day” campaign in 2004, a four-year contract worth $28M that “has become outdated and must be replaced,” according to the state’s Dept. of Health Services.

The state-backed campaign, administered through the California Dept. of Health Services, is aimed to support a larger multi-tiered social marketing effort urging the 10.1M Golden State residents eligible for food stamps to lead healthy lives through eating right and exercise.

The winning bidder will give a new face to the campaign and create a “master brand” to kick off in April 2007.

Firms must have a California office that has been in service for three years with annual billings of at least $7M to pitch. The RFP was released last week and a pre-proposal teleconference has been set for Dec. 19. A letter of intent to pitch is due Jan. 25.

Carmen Heredia ([email protected]) is point of contact.


Edelman’s Sacramento office has defeated an initial field of 17 firms for a multimillion-dollar public education effort to boost solar energy among California residents and homebuilders.

Gov. Arnold Schwarzenegger earmarked $4.5M for public education over four years as part of a larger $2.8B, 11-year incentive program under the California Public Utilities Commission. Residential and commercial customers receive incentives of $2.50 per watt of solar power and can qualify for additional federal tax credits under that program.

Edelman edged finalists Ogilvy PR Worldwide, Katz & Associates and Astone Marketing after a final round of presentations. Thirteen other firms pitched.
The RFP was issued in August and called for a two-year contract with two options at $1.5M per year.


GCI Group has won a five-firm shootout to develop and guide Georgia Tech’s first major effort with an outside PR firm.

GCI bested Edelman, Ketchum, Weber Shandwick and Fleishman-Hillard for the account, which carries a one-year term and year-long option.

GT, formally known as the Georgia Institute of Technology, was looking for an established firm to develop a strategy for its PR and marketing communications, nationally and locally, to increase awareness and enhance the “prestige” of the school.

An RFP issued in late August said 55 percent of the work would involve media relations, with the remainder going to planning, partnership development and PR materials. The school also said it could seek advice from its PR firm on advertising buys, although such work was not a requirement for the RFP.


Jeep Bryant, former SVP and director of corporate communications at PNC Financial Services Group, has been promoted to executive VP and global head of communications for The Bank of New York.

Bryant, who joined BNY in 2003 as a managing director, guides the company’s external PR and internal comms. for its 23,000 employees.

Bryant’s career has spanned major financial institutions. Prior to PNC, he held various corporate communications posts including SVP/director of corporate communications at First Union Corp. in Charlotte, N.C., as the company that would become Wachovia Corp. pursued more than 40 acquisitions to expand its reach.

Bryant is active in the Arthur W. Page Society and PR Seminar, and serves on the advisory council for the College of Charleston’s Dept. of Communications.


Staff of the National Investor Relations Institute, Vienna, Va., has undergone a major re-vamping in the wake of the appointment of Nancy Humphries as president and CEO to succeed Lou Thompson, who was at NIRI 24 years.

Humphries was at BellSouth Corp. for 30 years, becoming VP-IR and a corporate officier.

Eight of the current 16 NIRI staffers, including Humphries, are recent appointments. Among those leaving is Beth Carty, senior VP of member services, membership and chapter development.

Those duties put her in touch with many members

(Continued on page 7)

Internet Edition, December 6, 2006, Page 2


Sponsorship Strategies of Novato, Calif., has won a review to develop a corporate sponsorship plan for the Golden Gate Bridge in San Francisco.

The firm was chosen on the recommendation of the Golden Gate Bridge Highway & Transportation District’s government affairs and public information committee following an RFP. The District received four other proposals from Belenson Associates (San Francisco); Kimbrell & Co. (Sausalito); The Active Network (Huntington Beach) and The Superlative Group (Cleveland, Ohio).

The District issued an RFP in late August for a sponsorship program for the fabled bridge after developing a plan for its long-term financial stability which called for finding revenue from “non-traditional sources.” The District faces a deficit approaching $90M, much of that caused from post 9/11 security measures.

The RFP stressed that any sponsorship will have to preserve its “dignity and safety” and enhance the Golden Gate “brand and its image as an internationally recognized icon of historical engineering and architectural significance.”

The District’s PA staff is stressing that it will not pursue a naming rights deal for the bridge, but would likely install signs in visitor areas reflecting any corporate partnership deals that are worked out.


Fleishman-Hillard has established a Baby Boomer operation, FH Boom, to help its drug, financial, consumer products and technology clients sharpen their focus on that burgeoning market.

The Omnicom unit has hired Carol Orsborn, author of “BOOM: Marketing to the Ultimate Power Consumer—the Baby Boomer Woman,” to co-chair FH Boom with Eileen Marcus, the firm’s consumer lead.

Orsborn was senior partner at Imago Creative, a partner of JWT Mature Market Group, and ran her own consulting shop in San Francisco.

FH Boom has a blog at


Gavin Anderson & Co. is managing media for Nasdaq Stock Market and its $5.2B offer to purchase the remaining 71 percent stake in the London Stock Market that it does not own.
The deal is designed to beef up Nasdaq’s trans-Atlantic capability in the aftermath of the New York Stock Exchange’s $15B tie-up with Paris-based Euronext.

Nasdaq made a Securities and Exchange Commission filing on Nov. 27, disclosing that it has arranged a $5.1B line of credit from Bank of America and Dresdner Kleinwort to finance the bulk of the deal.

LSM chairman Chris Gibson-Smith has rejected Nasdaq’s offer as on the cheap side, pointing out that it represents a two percent premium over LSM’s trading price. He has nixed a request to meet with NASDAQ officials.

The LSM, which uses Finsbury for PR, notes that it is time to move on since NASDAQ has declared its Nov. 20 offer as “final.”


Abbott Laboratories is bankrolling the $60M “I Stand with Magic” anti-AIDS campaign that is fronted by basketball legend Magic Johnson.

The ex-Los Angeles Laker announced in `91 that he was infected with AIDS. Johnson officially kicked off the campaign on Dec. 1, World AIDS Day. He plans to visit at least 10 cities a year to educate people about the AIDS scourge and encourage testing for the virus.

Johnson is keen about getting that message to black Americans. Blacks comprise 15 percent of the U.S. population, but account for 50 percent of new cases.

The site allows people to post their picture if they stand with the basketball great. More than 880 people have done so.

USA Today (Dec. 1) mentioned the “Magic Paradox.” The 47-year-old Johnson “looks so healthy some may question whether AIDS is the menace it was made out to be.” Johnson attributes his health to a multi-drug cocktail that he takes each day, and the conditioning from playing in the NBA.

Abbott markets the AIDS drug Kaletra.


The Guam Visitors Bureau has posted an e-marketing RFP on its website that calls for a PR firm to help forge a “unified brand image” for the U.S. territory that lies in the North Pacific three quarters of the way from Hawaii to the Philippines.

The island, which has a population of about 200,000, draws more than one million vacationers a year. Key markets are Japan, China, Australia, Korea, Philippines, Taiwan and the U.S.

Gerald Perez, general manager of the GVB, believes an Internet campaign is the “most cost effective method of publicizing Guam’s story and appeal to an international audience.” He wants proposals by Dec. 15. Info is available at


Kwittken & Co. is handling litigation PR for Boxborough, Mass.-based FireStar Software, which has filed a patent infringement case against Red Hat, according to Aaron Kwittken.

FireStar alleges that Red Hat infringed on its patent to link software with databases. Kwittken calls the case significant because of Red Hat’s role as the “patron saint” of the open source software movement.

K&C, which was founded in `05, expects to chalk up $2.7M in fees this year. The firm’s 18 staffers have settled into 4,500 sq. ft. on Lexington Ave. near Grand Central.

Kwittken wants to open a London office during the next 18 months because he says that is where the action is.

The firm has three U.K. clients, and has just signed up $500K SilverJet account. The carrier flies a single 767 “business class luxury” jet from London (Luton Airport—32 miles from the U.K. capital) to New York (Newark).

Kwittken snagged that work from Freud Communications, which is part of Publicis Groupe.

Internet Edition, December 6, 2006, Page 3


Crisis pro Mark Corallo is repping Hank Greenberg, the 81-year-old former American International Group CEO, and denying reports that he is “buying hundreds of thousands” shares of the New York Times Co. in a bid to dilute Sulzberger family-control of the company.

The New York Post ran that item on Nov. 29 which helped drive the price of NYTC shares up nine percent to $24.76. The Post backpedaled Nov. 30, reporting that Greenberg isn't mounting a hostile takeover "by any stretch of the imagination."

Corallo says Greenberg owns less than 100,000 shares of the more than 143M NYTC shares outstanding. The Alexandria-based counselor adds that Greenberg has no intention of bulking up his NYTC holdings.

The financier has expressed an interest in buying a newspaper, and is among those considering a bid for Tribune Co., which is reviewing its strategic options.

Corallo is the former Justice Dept. PA officer, who worked for Karl Rove during the Valerie Plame-CIA outing story and former Hewlett-Packard director Tom Perkins through the pretexting mess.


Hearst Corp., publisher of the San Antonio Express-News, is buying 18 local papers ringing the city.

The collection includes Bulverde Community News, Leon Valley Recorder and Hill Country View.

The chain, which is housed in Prime Time Inc., was launched by Lowry Mays, founder of Clear Channel Communications. CCC is in the midst of being purchased by a Mays-family fronted group.

PTI president Bill Johnson believes the deal is a "great strategic move for both companies." He plans to stay on as a consultant for six months.


Melinda Henneberger is joining The Huffington Post in January as political editor. She will be based in Washington.

Arianna Huffington says Henneberger is in charge of building a team to cover Congress and the '08 Presidential sweepstakes.

Henneberger wrote political columns for Newsweek and spent a decade writing for the New York Times. She also reported for the Dallas Morning News and Newsday.

For the past two years, Henneberger has been traveling the country, interviewing women for her upcoming book, If They Only Listened to US: What Women Voters Want Politicians to Hear. THP gets three million unique visitors and 60M page views a month. Ken Sunshine Consultants promotes the site. has launched “Click to Call,” a service on its website that links product reviews to customer service representatives of a product’s company. In a deal with eStara, the website connects users by telephone with the click of a button. said it is the first web publisher to use the technology within its product review pages to deliver leads to national advertisers.


ABC Entertainment paid Rupert Murdoch’s News Corp.'s publishing unit a $1M "kill fee" because Barbara Walters decided not to interview O.J. Simpson about his now-killed book, "If I Did It," according to a Newsweek web report.

Newsweek reports that Walters took ten days to "think things over" about the interview before ultimately deciding against the meeting. She then told the audience of "The View" that she turned down a chance to sit down with Simpson.

That led ReganBooks to announce that the book about how Simpson would have gone about killing his wife, Nicole, and Ron Goldman was going to be a two-day "sweeps" bonanza for its News Corp. sister company, Fox Network.

ReganBooks felt that it was "strung along unfairly" by Walters, and ABC decided to pay the kill fee to avoid "embarrassing press leaks about the dealings or to maintain cordial relations with the feisty Regan.”

News Corp. and ABC have signed non-disclosure agreements about the negotiations. Murdoch, last month, killed the Simpson book and Fox program.


Iraq’s Interior Ministry said it has set up a media monitoring unit in an effort to crack down on stories it sees as erroneous.

The Associated Press has drawn the Ministry’s ire with a recent story about six Sunni Muslims who were reportedly burned alive during a November attack on a mosque in Baghdad. The AP stands by the story but the Ministry has questioned its sources and said the news organization paid for information, a charge the AP denies.

A spokesman for the Ministry told the AP that it has a large PR staff and should be contact to “get real, true news.”


St. Augustine-based counselor John Hawkins has launched "The Forgotten Street," a political and cultural website dedicated to promoting traditional American values. He told O’Dwyer's the site wants to "bring Americans together again around a common sense, non-partisan agenda."

Hawkins blames the establishment elite for selling out core American beliefs. "They are more focused on K Street, Arab Street, Champ-Elysees than they are on Main Street," he said in a release.

Hawkins says his own education was slanted by liberal and anti-war rhetoric, but he flourished when exposed to the conservative philosophy of Ronald Reagan. He is fed up with the inability of both Democrats and Republicans to "formulate a cohesive national agenda when our country is at war with Islamo-fascists."

TFS pushes a 10-point "Main Street Manifesto" to right what it feels is wrong with America. Some highlights include support for the "war on terror," immigration control, balanced budget, and "Star Wars."

(Media news continued on next page)

Internet Edition, December 6, 2006, Page 4


The PR industry is slowly realizing that marketing should take a back seat to forging good relations with media and the public, said a panel of news and publicity experts at popular New York nightclub The Cutting Room.

"We're heading into a time where we're going toward traditional PR, which I think is a good thing," said Joan Schaffer, an independent television and radio publicist.

The panel, hosted by the Entertainment Publicists Professional Society and sponsored by Live Star Television, was gathered to discuss the do's and don'ts of running a successful media tour.

As a publicist who specializes in booking satellite news media tours, Schaffer said PR can improve its image and its bottom line by easing up on the sales pitch and instead doing "something for your community."

"The bottom line is that neutrality isn't working for PR," she said. "You can't go out and sell salad dressing and expect people to get behind it. You have to have a cause that's going to help make communities a better place."

Transparency and ethics play an increasing role in the media tour business, especially lately, with the FCC's recent probe into televised networks and their use of VNRs during news segments. This has changed how networks use outside media sources and consequently, what publicists must do to ensure their client gets air time.

"Right now, it's extremely difficult to pitch anything with a blatant product pitch," Schaffer said. "Stations are not keen with these tours that have corporate sponsors. They're running scared because of the FCC. Unless I am completely blindsided, I am going to be completely honest with you – whose is it and why is it on there? I think that's fair."

For example, the healthcare industry's foray into the world of media tours, as made apparent by Montel Williams' popular tour for PhRMA's Partnership for Prescription Assistance, has signaled a success for the industry, but is also in many ways seen as an ethical minefield for news producers.

Celebrities are ‘bonus’

Robert Melstein, senior writer for CNN's "Headline News Showbiz Tonight," said segment producers have to draw guidelines and handle each case with the utmost scrutiny to ensure the news doesn't become a breeding ground for product plugs.

"We don't like the idea of having a spokesperson from PhRMA on our show," he said. "And we probably won't take them, unless, for example, the spokesperson actually has that disease."

So who makes a suitable slot for a media tour? Scott Knowlton, producer for "Your Morning" on CN8, said a good segment involves a guest who possesses the dual advantages of being a "good talker and a good personality." News items usually take precedence over entertainment, but if the guest is a celebrity, it's usually seen as a bonus for the network.

The panel was unanimous in citing a few rules to go by when getting your media tour ready for a segment: First, don't tell producers what they can or can't talk about, and don't ask for a list of questions that will be asked.

"We hit on a lot of stuff because that's what we find our viewers like," Melstein said. "We'll tell you that we're going to talk about A, B or C, but we're not going to send you the questions ahead of time and it's extremely important that they know that. If a celebrity is pushing a movie or whatever, fine, we will ask a question or two, but they need to have something else to talk about. That's the number one thing for booking a live media tour."

Second, make sure your guest is ready to go at the pre-determined time-slot. A late appearance is not only unprofessional, but in the world of TV news, it can cost you the slot.

"We do pre-tapes. We have a very limited time-frame and I can count on one hand the amount of time-slots I have for them," Schaffer said.

Third, give producers more than a sliver of time to work with guests.

"I know you want to book them for a lot of time on different shows - but we need more than four or five minutes," Melstein said.

When submitting a B-Roll or a VNR, Melstein said his company's policy is typically a standard in the rest of the industry at this point: The B-roll should always be credited to it creators.

Schaffer said this has been the practice at "pretty much every place I've ever worked for," and Sharon Johnson, entertainment producer for CBS Newspath, said her company's policy is also similar: video from a source other than CBS will always be credited to that source and sound bytes aren't used at all, she said, "unless it says something so shocking that we have to use that clip."

The panel also advised not to mix sound bytes with the B-Roll as the results are confusing and can result in a rejection from the network.

"In news, the ideal source is the original source," Schaffer said.

People ___________________

Tom Watson, national affairs editor for Newsweek, is now managing editor of the weekly’s website. It is part of Newsweek editor Jon Meacham’s plan to better integrate print and web news.

Carl Sullivan, news editor for, has also been named a senior writer for the magazine. He retains web duties. Sullivan led Hurricane Katrina reporting.

Ripplewood Holdings has named Mary Berner as president and CEO of The Reader’s Digest Assn. following the completion of its acquisition.

Berner, 47, spent the past six years as president and CEO of Fairchild Publications, where she re-launched Details magazine and launched the upscale parenting magazine Cookie. Earlier, she was publisher for Glamour and TV Guide.

Internet Edition, December 6, 2006, Page 5


Sixty percent of Japanese stakeholders say earned media using a PR firm is more effective than advertising, according to an Edelman report.

The firm tapped Harris Interactive to query 320 opinion leaders, including senior executives, investors, government and media in Japan.

Edelman sees the strong support for PR as a signal that PR has been an “underappreciated” aspect of corporate communications, according to Japan deputy managing director Keizo Kumazawa.

Blogging has increased significantly in the last year in Japan, according to the study. Nearly 80 percent said they have engaged in blogging, compared with 52 percent last year. Also boosting the web, 42 percent said they are more likely to use a corporate website to get information on a company than any other medium.

Support for CSR remained steady with a slight uptick in those who see it as a “sincere business shift, rather than just image building” to 49 percent, up from 46 percent last year. Ideals are high as 94 percent said “good and responsible” companies stand by their products in a crisis, but only 29 percent of Japanese and Western companies are seen as living up to that.

Western companies scored higher marks for transparency and openness, but Japanese companies got higher marks for quality of products and services.


Joseph Napolitan Associates, a Springfield, Mass.-based political PR firm, marked its 50th anniversary on Dec. 2.

Napolitan has worked on more than 100 campaigns for the U.S. Senate, House of Representatives, governorships and city elections, and has advised several international heads of state.

He served on the campaign staffs of President John F. Kennedy and Lyndon Johnson and later was director of media for Vice President Hubert Humphrey in the 1968 presidential campaign.

Napolitan is sometimes credited as the first “political consultant” and does not give interviews on campagins in progress, preferring to maintain confidentiality by working with a candidate and a small group of trusted advisors.

He wrote a classic campaign guide The Election Game, along with a memoir on his experiences.

BRIEFS: Affect Strategies, a high-tech firm based in New York, has aligned with London-based Johnson King PR, a tech specialist with offices in Germany and France. ...Capstrat, Raleigh, N.C., won a WebAward from the Web Marketing Assn. for its web strategy and design work for St. Engineering. ...GolinHarris has entered into an affiliate relationship with Seoul, South Korea firm Grape PR & Consulting. ...Environics Communications has marked the fifth anniversary of its Washington, D.C., office. Clients have included the U.S. Dept. of Labor and Moneris Solutions.


New York Area

Affect Strategies, New York/Telargo, mobile asset management solutions, for PR and marketing, and Blue Security, community approach to cutting down bulk email and spam, for PR.

Mouth PR, New York/Lemon, Internet recording band, for PR support of its current single, “What I Want for Christmas,” and CD, “Changing Into Me.”

Rubenstein PR, New York/Fenwick Keats Goodstein;; Mosaic Properties, and CIEL, all real estate accounts, for PR.

Ruder Finn, New York/Reuters Collaboration Services, the hardware, software and enterprise messaging unit of Reuters America, for PR counsel and media relations in New York and London. RCS’ flagship product is Reuters Messaging service for the financial industry.

Roher PR, Chappaqua, N.Y./All Media Guide, content and content management technology, for B2B PR and marketing communications; LifebankUSA, for PR for launch of its PlacentaCord banking; Rosenberg & Estis, real estate law firm, and SiRAS, point-of-sale electronic registration for videogame systems, for PR planning and implementation.

Allen & Caron, Stamford, Conn./Clean Diesel Technologies, developer of chemical and technological solutions to reduce engine emissions, for renewal of its IR and corporate communications contract.


360 PR, Boston/Galaxy Nutritional Foods, marketer of cheese alternatives, for consumer PR.

Tiffany Williams & Co., Quincy, Mass./Compass Medical; Mentor Partners, and The Pentad Group, for development of new websites.

Widmeyer Communications, Washington, D.C./
Renaissance Learning, software and training seminars, for PR to support the company and its Accelerated Reader Enterprise software.

CRT/tanaka, Richmond, Va./Thor-Lo, protective sock products, and the Institute for Preventative Foot Health, for cause-related marketing and counsel.

Arketi Group, Atlanta/HealthMPowers, for re-branding, including logo design and identity development, efforts as the non-profit changes its name to Kids’ Health. The work is pro-bono.


GolinHarris, Chicago/U.S. Postal Inspection Service, for PR to support an overall marketing communications campaign targeting teens about posting information on social networking sites and blogs with Campbell-Ewald. Also, GH’s Shanghai, China, office has been tapped by Toys “R” US for PR.

Zapwater Communications, Chicago/Unscene Urban Navigator travel guides, and ChinaStar 101, travel planning service for business travelers in China.

Marx Layne & Co., Farmington Hills, Mich./Atlas Oil Co., fuel distributor, for comms., PR and mktg.


JS2 Communications, Los Angeles/La Brea Bakery, artisan breads, as AOR for PR and marketing.

Internet Edition, December 6, 2006, Page 6


Video Monitoring Services has inked a deal with Nielsen BuzzMetrics, the measurement company which tracks consumer generated media.

VMS clients can access NB’s database of millions of blogs as part of the company’s existing integrated monitoring services and the upcoming release of its Integrated Media Intelligence platform.

Peter Wengryn, president and CEO of VMS, said the deal allows VMS to offer “best in breed blog coverage” to complement its print, broadcast and Internet services.


The Institute for PR has developed a research program backed by Wieck Media to build a body of knowledge on the impact of digital media on PR.

An advisory panel of academics and practitioners has been named for the effort. Among the participants are Ken Makovsky, president of Makovsky & Co. who writes a weblog; John Pavlik, professor and journalism and media studies dept. chair at Rutgers Univ., and Jennifer McClure, executive director of the Society for New Communications Research.

Tim Roberts, president of WM who is also on the panel, said areas of interest could range from the growing influence of “citizen journalists” to standards for new media press releases.


Financial performance had a strong impact on media coverage of major companies in the third quarter, according to Delahaye’s quarterly index.

Dell fell 61 places on the index on news of its financial woes, while Delphi, Tyson Foods and Fannie Mae faced similar struggles.

The financial focus scored positive results for General Motors (up to No. 13, from 100), along with the three companies that remain atop the index: Microsoft, The Walt Disney Co. and IBM.

Delahaye said Wal-Mart landed in the No. 5 slot on news of strong back-to-school sales and the overturn of a Maryland law aimed to force the retailer to insure its employees.

BRIEFS: United Business Media is mulling a $1B bid for PR Newswire from Apax, a private equity firm, according to the London Times. ...Leonard Nelson, a veteran radio producer and interactive media exec for Susquehanna Radio Corp., has been named executive producer for San Francisco video PR company Bars+Tone. Nelson was producer of the “Frank and Mike Morning Show” before being named director of interactive media for SRC. ...AdMedia Partners, the M&A advisor for advertising and marketing companies, counseled The Glover Park Group as the PR and public affairs firm received a “major investment” from Svoboda, Collins, a Chicago private equity firm. The firm was involved in WPP’s acquisitions of Public Strategies and Quinn Gillespie, Financial Dynamics’ purchase of Dittus Comms., and Ogilvy PR Worldwide’s acquisition of The Federalist Group.



Lara Cohn, senior VP for Steele Rose Communications, to Zeno Group, New York, as a senior VP in the firm’s consumer practice. She has been at MWW Group, DeVries PR, and The Lippin Group.

Arlyn Davich has left the Rosen Group for an associate VP post at Rubenstein PR, New York. She was formerly with MRM Direct, McCann Erickson’s direct marketing unit.

Tina-Marie Adams has joined MWW as senior VP in charge of its Chicago office. She had been at Hill & Knowlton for the past seven years, exiting as Midwest director for healthcare and PA clients. Adams also served as U.S. training director for the WPP Group unit. Prior to H&K, Adams held posts at Fleishman-Hillard, Tierney Group and Forester & Co. Adams’ current task is to build awareness of East Rutherford, N.J.-based MWW in the Midwest. Garrett Glaser, former CNBC reporter and a veteran communicator, has joined MWW as a VP in its N.J.-based corporate comms. unit. He had been a senior consultant for Strategy-XXI Group in New York. Earlier, Glaser was VP of media relations for IT product company EMC Communications on the West Coast. He reported for CNBC from 1997-05 and served as the network's retail and apparel specialist. Glaser was previously active in the National Lesbian and Gay Journalists Assn., where he served on its board and co-founded the group’s electronic media task force.

John D’Allesandro, former director of public affairs for Inter-Power Development Corp., to Behan Communications, Albany, N.Y. He was recently VP of public affairs for Special Olympics New York, president of WordSmith Communications, and senior public affairs officer for the N.Y. Power Authority.

Jerry Goldstein, senior VP of marketing, Prosero, to William Mills Agency, Atlanta, as a VP.

Samantha Oehl Jacobs, senior director of AMPR, to Starmark International, Fort Lauderdale, Fla., as director of PR. She was previously at O’Connell & Goldberg and a VP for Warschawski PR in Baltimore.

Mike Conway, VP of investor relations at KeyCorp, to The Sherwin-Williams Co., Cleveland, as director of corporate comms. and IR. Conway was director of corporate comms. for Manco, director of media relations for the Greater Cleveland Regional Transit Authority, and special projects reporter for WJW-TV-8 in Cleveland.

Linda Clark, VP of marketing, PSS Systems, to Eastwick Communications, Redwood City, Calif., as executive VP. Susan Radd, VP and strategist for Edelman’s Silicon Valley office, joins Eastwick as a VP. She headed PR for Globalstar, Symbol Technologies and the WiMAX Forum at Edelman.


Roger Schrum to staff VP, investor relations and corporate affairs, Sonoco, Hartsville, S.C., effective Jan. 1. Schrum, 51, had been director of communications.

Internet Edition, December 6, 2006, Page 7

NIRI REVAMPS STAFF (Continued from page 1)

while other staffers who have left worked mostly on internal matters and were not well known to members.

Carty was with NIRI about 20 years. She could not be reached for comment nor could NIRI executives.

Others leaving were Josephina Arias, member services; Susie Cunningham, chapter services; Shannon Duong, professional development; Connie Harrison, IR Quarterly; Satik Manjikian, finance; Lynn Meloche, director, member services, and Dahlia Tart, professional development. The departures of Laura Bernstein, editor of IR Update (monthly), and Eric Thompson, son of Lou Thompson, an administrative assistant, were previously reported.

New Staffers on NIRI Website

Joining NIRI, according to a staff listing on, are Andrew Jens as SVP, administration and CFO; Michael McGough, VP, marketing and membership development; Tarik Habayeb, assistant to VP of finance; Melissa Jones, manager, marketing comms., who returns to the staff; Robin Kite, director, chapter services; David Meisner, membership development, and Rhonda Watson, database and exhibits.

Remaining on the staff are secretary Linda Kelleher, who was paid $176,148 in salary in 2005 and $48,030 in health benefits/pension, and Carolyn Wheatley, paid $138,667/$22,841.

Lou Thompson was paid $384,411/$48,415.

Also remaining on the staff are Susan McGuire, assistant to president; Katherine Philipp, director of professional development; Pamela Spraker, director of information systems, and Angela Mumeka, manager of member services.

Heather Sieber, the first on-staff PR person in NIRI’s 35-year history, joined from the Federal Home Mortgage Corp. in early 2005 and left in mid-2006. She was not replaced.

NIRI had record cash/savings of $5.2M at the end of 2005, helped by a dues increase of $50 to $475. Net assets, including dues for the next 12 months booked as cash, rose 7% to $4.57M. NIRI has 4,300 members, down from a high of about 5,200 in 2000 when numerous dot-com companies were members. Members totaled 2,571 at the end of 1994.

NIRI this year switched from a printed members' directory to one that is online only and password-protected for use by members. Its printed directory had also not been available to the press.


Gayle Essary, 66, a campaigner for openness and accountability in the financial markets, died July 13 at the Seton Medical Center in Austin. Burial was in Palestine, Texas.

Essary, who founded the Investrend group of independent analysts in 1996, felt that analysts for brokerage houses had a "huge, monumental conflict of interest" because their employers invariably had holdings in the very companies the analysts were writing about.

Admitting such a conflict, as required by the SEC, was not enough, he contended. Consumers of the reports needed to know how much stock or investment banking was involved. Essary accused NIRI and the Chartered Financial Analysts Institute of a “gigantic ethical lapse” in not addressing this issue. He also wanted both groups to press for allowing reporters to ask questions on quarterly conference calls with CEOs and CFOs. He felt reporters should have the same access to company executives as analysts.

Essary, born in Electra, Tex., was the son of the Rev. Willerson Essary, an evangelist, and Lena Essary. After graduation from Tyler Jr. College, he became a reporter for the Tyler Star. He later went into the magazine business and served as a political consultant.

He founded the First Research Consortium in New York in 2003. It is a group of 15 independent analyst firms that work for investors rather than public companies themselves. Members of the Consortium promise not to own any of the stocks they write about.

The need for independent analysts arose when large brokerages cut back on the number of stocks analyzed.

Todd Essary, who has succeeded his father as head of Investrend, said the independence of researchers “makes our research credible, makes the market pay attention, and shows the earnestness of any company that subjects itself to such unbiased, professional scrutiny.”


Abusive labor practices abound in China despite rosy reports by auditing firms hired by such companies as Wal-Mart, Target, Nike, Reebok, Home Depot, McDonald’s and Sears, Robuck, said the Nov. 27 Business Week.

Although auditing labor conditions has become a big business, BW says employers coach workers to say the “right things” to auditors, hide abusive working conditions, and keep two and even three sets of books to fool the auditors. It notes that the Chinese government puts the average factory wage at 64 cents an hour but that assumes a 40-hour week when forced overtime without extra pay is common. Typical workers clock 80 hours a week and make only 42 cents an hour, says BW.

Nike told BW that wages are “best set by the local marketplace” while Home Depot said there is “no perfect factory” and Sears refused comment.


PR firms, worried about high health insurance costs, responded in force to a survey about such costs by StevensGouldPartners, New York.

Responding were 160 out of 190 firms (84%) that were surveyed.

Twenty-five percent said they make employees pay the full cost of healthcare insurance and the figure is 36% when costly family plans are involved.

Single insurance runs from $3K to $6K yearly while family plans can run from $12K to $20K and more.

Employees pay some part of their insurance plans at 94% of the PR firms. About half said employees pay 80% and more of expenses. The payments are made by the companies to the plan and deducted from paychecks. Otherwise, employees would have to deduct the expense from their income. Such expenses can only be deducted if they total more than 7% of income.

Internet Edition, December 6, 2006, Page 8




The bloodbath at NIRI h.q. (page one), in which 11 of the 18 staffers from a 2005 list are gone and eight new staffers have arrived, puts NIRI and the entire practice of IR in a much needed spotlight.

The 24-year reign of CEO Lou Thompson ended earlier this year and not on a good note. It’s no testimony to the quality of his staff that 11 of them are quickly dismissed or leave. Membership, in spite of the record stock market, has fallen from 5,400 to 4,300. But there are 13,000 companies on the NYSE, NASDAQ and Amex plus many thousands of others in the “pink sheets.” The great bulk of public companies avoid NIRI and even IR. NIRI’s dues of $475 plus upwards of $100 for chapter dues are one barrier to growth.

“IR” has gotten a bad name among financial researchers who denounce it as “marketing.” NIRI’s own definition includes the term “marketing.”

NIRI was an outgrowth in 1970 of the IR Assn., a group of 25 company financial specialists. Its charter specified control by corporate rather than agency people (PRSA was seen as dominated by agencies).

NIRI at first embraced financial PR pros, many from PRSA. An early president was Pete Roalman of Harshe-Rotman & Druck, a major PR firm. But in the later ’70s, the market fell, commissions were slashed, and analysts were trimmed.

Many joined NIRI, which morphed into an activity focused on Wall Street and SEC compliance. Most of those with press or PR backgrounds left. NIRI became like a highly specialized life form whose very specialization threatens its existence.

“NIRI is made up of Wall Street, numbers-oriented people but stocks are being driven by headlines today,” said one financial PR specialist. “They’ve lost touch with reality.” Another said, “The internet, blogs, etc., are one big publicity machine and IR people can’t deal with it.” A third said “IR staffs are minuscule, mostly one or two people and they’re up to their ears in SEC minutiae, deadlines, SarBox, etc. They’re under tight control by the CFO.” Said another: “NIRI created a separate industry called IR and its practitioners don’t want to dirty their hands by dealing with the press.”

That’s what he said. We, the press, are “dirty,” and the financial world, which gave us Enron, Worldcom, etc., is “clean.”

The narrow “numbers” focus of IR is hurting the industry, Thompson himself admitted in 2002. He quoted Prof. Baruch Lev of the Stern Business School as saying “about 80% of the average S&P company’s market value is due to non-financial or intangible assets not in financial statements.”

Thompson agreed that IR and PR are in “separate silos” in many companies and the IR person may not be allowed to talk to the media. He said NIRI planned a “Center for Integrated Communication” to bridge IR & PR but we don’t know what happened to it.

NIRI staff and board are not taking calls.

We’re glad the 24-year reign of Thompson is over. He was too dominant in NIRI for too long. No one on the board including the chair was allowed to deal with us. Lou made the key speeches on behalf of NIRI.

His policy of hiring only women (except for his son Eric) was discriminatory. There are now four males on the staff. NIRI’s press-avoidance policies include blocking press access to its website.

Being the “corporate conscience” is not one of an IR person’s jobs. IR’s focus is on investors (meaning mostly giant institutions rather than individuals). While PRSA leaders say emphasizing ethics, values, morals, etc., is the main duty of PR people to their employers and Harold Burson says “the spirit of the ombudsman should pervade the job,” there is no such imperative at NIRI. Its code even lacks the word, “public” although the definition of a profession is an activity that puts the welfare of the public first. We can see a PR pro telling a CEO that his or her high pay is bad for the company’s rep or that back-dating options is wrong, but such advice would be outside the realm of an IR person.

Financial researcher Gayle Essary, whose obit is on page 7, had a number of run-ins with NIRI. He did not want to be identified with IR or the brokerage-house “research” done for the “sell side.” He despised the term “IR” because he felt IR people were working in behalf of their clients and employers and not in behalf of investors. The independent analysts’ industry, which Essary founded, works only for investors and “never” for public companies, staffers at Essary’s Investrend told us.

PR pros should be familiar with the First Research Consortium of independent analysts.

The restrictive, disciplined, serious, even fearful nature of much of PR/IR these days is evident in the lack of any holiday parties by the three major PR groups in New York–PRSA/NY, Publicity Club and IABC/NY.

In this “Season of Good Cheer,” all they will have in December is their regular meetings. IABC announced a party but too few responded and it was cancelled. Last year more than 100 members celebrated at Annie Moore’s in midtown. In the 1970s, PRSA/NY’s holiday party was an extravaganza in the Starlite Roof of the Waldorf-Astoria with more than 400 enjoying lunch, entertainment and a “goodie bag” stuffed with a dozen or more items. As late as five years ago, New York groups combined on a holiday party at a disco that attracted hundreds. Most of the money for these events came from corporations and the big PR firms. Meanwhile, the New York Post reports that other industries are throwing big parties for themselves. What made this sea change? It could be that companies regard PR as less important than they once did. Some corporate PR staffs are fractions of what they were so there are fewer people to attend. Another reason is the current tight-lipped nature of corporate and agency PR.

Companies don’t want their PR people fraternizing with PR people from other firms.

--Jack O'Dwyer


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