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Internet Edition, April 23, 2008, Page 1


Porter Novelli has won a three-year, $4.5M contract to handle public outreach as San Diego County implements a $700M revamp of Lindbergh Field airport.

PN was one of five firms that attended a pre-pitch meeting of the San Diego County Regional Airport Authority Board in February. Katz & Associates, AdEase, Lista Design Sudios, and MNA Consulting rounded out that group, although nearly 20 firms signed on as interested bidders for the RFP.

The SDCRAA board approved PN’s contract for media relations and public outreach at its April 3 meeting. PN worked on a $500K ’07 project for the authority regarding the expansion’s environmental impact.


Ken Mehlman, who ran President Bush’s re-election campaign and helmed the Republican National Committee, has joined private equity firm Kohlberg Kravis Roberts & Co. in a new post to head global public affairs.

Mehlman, an attorney who had recently been a partner at high-powered D.C. law firm Akin Gump Strauss Hauer & Feld, is a managing director at KKR. The company said he will focus on “constructive outreach” to the firm’s shareholders, companies, as well as governments, NGOs and other entities.

Henry Kravis and George Roberts, co-founders of KKR, said in a joint statement that Mehlman, 41, will allow KKR to expand and institutionalize its outreach as it communicates “the public benefits of private equity.” Mehlman was a field director for Bush in 2000 and was later named White House director of political affairs. After managing Bush’s re-election, he was named chairman of the RNC.


Saudi Arabia has sliced Hogan & Hartson’s monthly retainer to $33,333.33 from $50,000 according to the lobbying firm’s revised contract with the Kingdom.

H&H has a one-year pact for legislative, regulatory and public policy work. It also advises the Kingdom on “media reports and related public affairs developments.”

The D.C. firm stands ready to take on “specific advocacy assignments” for the Saudis aimed at U.S. government officials or members of the media.

H.P. Goldfield, H&H’s senior int’l affairs advisor, is working the Saudi Arabian business. He is vice chairman of Stonebridge International, the global strategy firm founded by President Clinton’s national security advisor Sandy Berger.


Interpublic CEO Michael Roth received a 23.9 percent pay hike at the March board meeting, according to the ad/PR conglom’s proxy released April 18. His salary is now $1.4M

IPG directors granted the boost because Roth had not received a raise in his $1.1M base since he became CEO three years ago. They also considered Roth’s role in the firm’s “transformation,” improvements in pre-tax earnings, operating margin, revenue growth and becoming Sarbanes-Oxley compliant. The board members also wanted to “ensure his retention.

Roth’s total `07 compensation package hit the $8.9M mark, up 16 percent from the prior year. IPG earned $167.6M in `07 vs. a $31.7M loss in ’06.

Philippe Krakowsky, executive VP/strategy and corporate relations, also received a pay boost. The board’s compensation committee increased his salary to $620K from $550K effective April 1, 2007.


David Sandor has exited the VP-communications post at Kimberly-Clark after a brief stint at the $16.7B Dallas-headquartered tissue company. Dave Dickson is director of communications.

Sandor served as VP-PR at Home Depot, VP-corporate relations and PA at VISA USA, and VP-corporate communications at Associates First Capital Corp. prior to its acquisition by CitiGroup in 2000.

He is a founding member of Powell Tate and a veteran of Hill & Knowlton and Carl Byoir & Assocs.

On the political front, Sandor was spokesperson for the George Bush’s 1988 political campaign and communications advisor to then-Transportation Secretary Sam Skinner.


“PR Society has decided to limit its contact with (Jack) O’Dwyer,” said an e-mail to “leaders” of the Society April 9. The letter said O’Dwyer had “stepped far beyond the bounds of accurate and professional reporting,” although it cited no specific instances of inaccuracy.

A similar boycott by the 1999 board led to cancellation of the entire PRS Code of Ethics after a member filed ethics charges against the 17 board members.

Rather than adjudicate the charges, as provided in the bylaws, the national board adopted a new code that eliminated consideration of charges against individual members.

(Continued on page 7)

Internet Edition, April 23, 2008, Page 2


A group of liberal Jewish Americans frustrated by “far-right” pro-Israel sentiments in the U.S. have formed a lobbying and political action committee in Washington, J Street, to advocate in Congress and the media a comprehensive peace deal between Israel and its neighbors.

D.C. PR firm Rabinowitz/Dorf Communications is handling PR for the group’s launch. The firm is headed by Matt Dorf, former Jewish liaison for Howard Dean’s presidential bid who consults for the DNC, and Steve Rabinowitz, a former Senate comms. director who was director of design and production for the Clinton White House.

“The term ‘pro-Israel’ has been hijacked by those who hold views that a majority of Americans – Jews and non-Jews, alike – oppose, whether supporting the war in Iraq, beating the drums for war with Iran or putting obstacles in the path to ending the Israeli-Palestinian conflict,” said Jeremy Ben Ami, executive director of J Street and a former Clinton Administration and Dean staffer.

J Street contends that in recent years, Jewish advocacy and lobbying groups like the American Israel Public Affairs Committee have adopted right-leaning platforms in support of Israel. The new entity wants to reignite talks for a two-state solution to the Israeli-Palestinian conflict. Its PAC arm will raise money and endorse political candidates in the U.S., which the AIPAC does not do.

Supporters include ex-Sen. Lincoln Chafee (R-R.I.), ex-Rep. Thomas Downy (D-N.Y.), Eli Pariser, executive director of, and Markos Kounalakis, president/publisher, The Washington Monthly.


Brunswick Group is guiding the Delta/Northwest Airlines merger to create the world’s biggest carrier and “America’s premier global airline.”

The deal is pitched as a “win-win” situation that helps offset rising fuel costs and increased competition triggered by the “Open Skies” treaty.

Delta CEO Richard Anderson will direct the $35B giant that will carry the Delta name and employ 75,000 people. Northwest CEO Doug Steenland will become a director of the merged entity, but have no daily management role.

The new airline will be based at Delta’s current Atlanta headquarters. It promises to maintain “executive offices” in the Minneapolis/St. Paul area where Northwest is headquartered.

The deal faces opposition from the pilots’ union at Northwest which fears job cuts. (Legacy carriers have shed 150K workers since `01, a period in which they lost more than $29B.)

Brunswick’s Steve Lipin and Cindy Leggett-Flynn are promoting the Delta merger.


Weber Shandwick is providing PR counsel to Warner Bros. Entertainment in the global entertainment company’s suit with author J.K. Rowling to stop a Harry Potter reference book from being published.

WS’ corporate and entertainment practices in Los Angeles handle ongoing issues work for Warner Bros. around the globe, David Shane, SVP who heads those units, told O’Dwyer’s.

Warner Bros. owns the trademark and movie rights to the Harry Potter franchise. The company and Rowling have sued RDR books of Michigan, which plans to publish an encyclopedia of Harry Potter terms.

RSR’s planned book “provides no analysis and virtually no commentary. It takes far too much and it offers precious little in return,” said Rowling, in a statement distributed by WS.

Rowling, who said she is working on her own Potter encyclopedia, testified in the case to much media fanfare in New York on April 14.

RDR is arguing that its book, “Harry Potter Lexicon,” constitutes fair use of Potter material. Publication of RDR’s tome has been suspended pending the outcome of the Rowling-WB suit.

The Potter films distributed by WB generated $4.5 billion at the box office. More than 400 million copies of the books have been sold.


Alcoholic beverage marketer Constellation Brands has brought in an aide to Sen. Diane Feinstein (D-Calif.) to fill a new external affairs post focused on the western U.S.

Michael Walker, who has been a field representative for Feinstein since 2000, takes up the role of VP of external affairs based in Constellation Wines’ office in San Francisco. He handles government relations, management of the company’s PAC contributions, and relations with trade groups and peer companies.

Constellation markets more than 300 brands including Corona, Robert Mondavi, and Svedka Vodka. It is the largest winemaking company in the world following several acquisitions over the last few years.

Walker reports to Jim Finkle, senior VP for external affairs. Finkle noted California’s importance to the company’s winemaking business, its status as the state with the largest consumer population, and issues like the environment, land and water use, and international trade that are key to stakeholders there.

Walker served in the Dept. of Health and Human Services during President Bill Clinton’s second term. CB is based in Fairport, N.Y.


Martin & Salinas Public Affairs and community engagement firm Rifeline picked up a $1 million contract to handle PR for road bond projects in Williamson County, Tex., part of the Austin-Round Rock region of the Lone Star State.

TateAustinHahn, McMichael & Co., and Ledbetter & Associates also pitched for the work.

Both Rifeline and M&S are based in Austin.

The size of the contract has been criticized by some citizens and political rivals of the Republican county commissioner. The county says it doesn’t have enough staff to educate residents about road projects, according to the Austin American-Statesman.

The contract includes media relations, events support, and community briefings.

Internet Edition, April 23, 2008, Page 3


Gannett posted an 8.4 percent slide in first-quarter revenues of $1.7M compared to $1.8M in Q1 '07.

The company said a weak advertising environment in its publishing and broadcasting operations, especially in the latter half of March, hurt its operations.

Ad revenues in publishing slipped from $1.2B in '07 to $1.1B in Q1 '08. U.S. ad revenues dropped 11.2 percent, while the U.K. slipped by about seven percent.
Broadcast ad revenues fell seven percent to $170.2M compared with Q1 last year.

The slumping real estate market hurt classified advertising, but Gannet said national ads in USA Today and USA Weekend were a bright spot.


The New York Times Co. reported a first-quarter $335K loss, compared to a $23.9M profit a year ago, due to decreased ad revenues and the “effects of secular change in our business,” said a statement from Janet Robinson, CEO.

Revenues dipped 4.9 percent to $747.9M. Advertising revenues sunk 9.2 percent to $458.3, while circulation sales were up 1.9 percent to $226.7 million.

Robinson admitted to a “challenging time for the media industry,” but said she is diligently managing NYTC’s business for the long term.

The company recorded a one percent drop in operating cost, which is the fifth straight quarter of decline.

Robinson noted that the rate of advertising decline in April improved to “mid-single digits. That improvement is due to “shifts in the timing of Easter and in the publication of Key Magazine.

The NYTC’s About Group, its online properties, registered a $9.5M operating profit on $28.1M revenues during the quarter. Its news media operations posted a $13.3M profit on $720M revenues.

NYTC said it had the 11th largest presence on the web with 50.4M unique visitors in March, up from 43.5M in ’07. grew to 18.9M unique visitors, up from 14.5M in ’07.

The Times is cutting its newsroom count by 100 staffers.


More gay and lesbian adults (51 percent) say they read blogs than heterosexual adults (36 percent), according to a Harris Interactive/Witeck-Combs Comms. survey.

Harris noted a similar survey in November 2006 found only 32 percent of gay and lesbian adults said they read blogs.

Slightly less than one-third of gay and lesbian people said they posted a comment on a blog in the last month, compared with 19 percent of heterosexuals.

Of the blogs they said they have read, 23 percent of gay and lesbian people said they read political blogs, compared with only 14 percent of heterosexuals.

About one-fifth (19 percent) of G&L adults said they" felt positive" toward advertisements, compared with eight percent for heterosexuals. That was down slightly from the '06 study of 21 percent.

A large percentage - 57% - of gay men said they belong to a social networking site, compared with 37 percent of heterosexuals.

The survey polled 2,733 U.S. adults in March.


The April 28 BusinessWeek asked MWW Group’s Michael Kempner, Abernathy MacGregor’s Jim Abernathy and Sitrick & Co.’s Michael Sitrick on how they would advise China about its Beijing Olympic Games crisis.

Kempner recommends China organize an international panel on Tibet. That would at least show the world that China is willing to discuss Tibet.

He suggests reaching out to human rights groups and show them that China has made some progress on the rights front.

Kempner said China has “little understanding of the art of image-crafting.” He also believes the best PR in the world cannot “overcome geopolitical realities.”

Abernathy told BW it’s easy to “hate the Chinese Government, but it’s a lot harder to dislike individuals.” He suggests China round up a “couple of sweet 19-year-old gymnasts” and some attractive English-speaking women and put them on the talk show circuit.

“We’ll have the Chinese version of gymnast Mary Lou Retton do flips on camera but provide only noncommittal answers on the conflict,” said Abernathy. His point is to “change the subject, making it a personal rather than a geopolitical thing.”

Sitrick would scour the press, look for inaccuracies and aggressively set the record straight.

The Chinese should address the controversy on “60 Minutes” and then launch a full-court press with Olympians explaining what the Games mean to them.

Sitrick noted a possible fallout: a “backlash against the protestors.”


Gawker Media publisher Nick Denton has sold three of his sites – music industry site Idolator; Gridskipper, an urban travel blog, and D.C. gossip site Wonkette – as the blog CEO said he expects a downturn.

Idolator was sold to Buzznet, a music-focused social network. Gridskipper is being taken over by Curbed, a network founded by Gawker alum Lockhart Steele in which Gawker Media is a shareholder.

Wonkette has been spun off to managing editor Ken Layne and will be part of the Blogads network of sites, which includes Daily Kos.

Denton said in an email that all three sites had editorial success, but that “someone else will have better luck selling the advertising than we did.”

On Wonkette, once of GM’s more recognized properties, Denton said he has been expecting a downturn since the middle of 2006, when GM sold off its Screenhead blog and pulled the plug on another blog, Sploid.

“And, even if not, better safe than sorry, and better too early than too late,” he wrote.

(Media news continued on next page)

Internet Edition, April 23, 2008, Page 4


The Pen American Center, the human rights organization of writers, will have an empty chair onstage at each of its programs during its New York Festival of International Literature slated for April 29 to May 4.

The chair symbolizes Pen’s campaign to pressure China to free before the beginning of the Beijing Olympics the 38 writers and journalists imprisoned for their writing.

Pen’s “We are Ready for Free Expression” campaign is a take on China’s “We Are Ready” slogan to build public support for the Games.

The group will honor Chinese dissident writer Yang Tongyan, who is serving a 12-year prison term, at the April 28 kick-off gala set for the American Museum of Natural History.

Yang was charged with posting anti-government articles on the Internet and accepting funds to transfer to family members of jailed dissidents.

His lawyer, Li Jianqiang, has been invited to accept Yang’s award. Chinese officials revoked Li’s law license for representing dissidents.

China is looking for a PR firm to buff its image.


Thomson Corp. consummated its nearly $16 billion acquisition of Reuters on April 17.

Tom Glocer, seven-year CEO of Reuters, hems the New York-based combined entity, known as Thomson Reuters Corp. and spanning business from financial and investment services to news gathering and bond-trading operations. Thomson CEO Richard Harrington is retiring. The new company tops Bloomberg as the largest company based on share of the financial information market.

Reuters has nearly 200 news bureaus, which are being integrated with Thomson’s North American and European operations, known as Thomson Financial News and AFX News, respectively.

The company trades as TRIL on the London stock exchange.


Publication Services of America, which markets newspaper-insert magazines, said it will launch its first metro edition of Better Health & Living in Minneapolis-St. Paul on April 26 via the St. Paul Pioneer Press.

The magazine (which does not run advertorials) will cover local and national health content with a 20-80 percent split, respectively. The first issue will run 68 pages with an initial circulation of 65K, with another 20K sent to select neighborhoods.

Regular features include healthy eating; weight loss, fitness fun; health-related products; raising fit and happy kids, and alternative medicine.

Editor-in-chief is Susan Flagg Godbey, former editorial creative director at Prevention magazine. Writers include Kay Harvey, former reporter for the St. Paul Pioneer Press; Adrienne Greer Foley, Sheila Mulrooney Eldred and Sara Aase.

Briefs________________________________ has added news preview program Apture to two of its blogs. The Apture platform allows readers to browse related content like videos and articles without leaving the web page they are on. The site is the first to use the platform and features it on political blog The Fix,, and entertainment blog Celebritology,

People ___________________________

Rebecca Dolgin, executive editor of Life & Style, has been named VP and executive editor of The Knot’s print properties. She was previously fashion director at All You magazine and senior editor at More and Parenting Magazine.

Sally Jones, director of networking programming for Hearst Digital Media, was named VP/executive editor of The Knot’s online sites. She was previously with Time Inc. for four years, serving as site editor of and AOL Parenting. She previously was site director for Meredith Corp.’s and, and was senior producer for Disney’s The Knot said the appointments support its expansion beyond weddings, to include pregnancy and first-time parents.

Pitch Tips: Marcella Isaza, entertainment producer at Associated Press TV News, wants pitches about “artists or actors that are important to the entire world.” That’s what she told Entertainment Publicists Professional Society’s minority media editors panel at an April 17 workshop in Hollywood. Isaza wants to receive notice two weeks in advance of an event and a music video of the artist. The producer covers red carpet events, award shows, film, TV, music, fashion and features. She also handles Latin broadcast coverage for the western U.S. Isaza reminded the publicists to “keep in mind the essentials of lighting, noise and deadlines for shooting.” The beauty of an APTV “hit:” “half the planet will hear or see it,” according to Isaza at [email protected].

Antonio Mejias-Rentas, entertainment editor at La Opinion, the nation’s largest Spanish language paper, reads several hundred emails between 7 and ten in the morning and from 6 to 8 during the evening. The Spanish language is “the major driving factor in the television reporting that La Opinion does. To a lesser degree, we cover Latinos who are doing things in English,” said Mejias-Rentas. La Opinion recently transformed its “daily entertainment-only section into the new Hola LA, which now includes lifestyle features, food, fashion and health. Email is [email protected]. Jorge Usatorres, morning show producer at Latino 96.3 FM KXOL, believes many publicists do not pitch him because they think he is looking only for a Spanish language story. “We can take a small story, and spin it into a big one,” he said. “Our audience just doesn’t live in Compton and speak Spanish.” His email is
[email protected].

Internet Edition, April 23, 2008, Page 5


Hill & Knowlton has aligned with Sacramento-based government and public affairs firm Thomas Advocacy.

H&K struck an alliance with Los Angeles PA and issues management firm Sugerman Communications Group in October 2007.

Terri Thomas set up TA in December 2003 after 20 years as a founding partner of Neff/Thomas. She was previously chief deputy legislative secretary to ex-Gov. Jerry Brown.


Racemind HuaDing, a unit of Greater China Media & Entertainment Corp. of Beijing, has inked a deal to design and produce a promotional clip for H-line Ogilvy Information Services, the joint venture of Ogilvy and China-based PR firm H-line.

The clip, titled “Communication Changes Our Life,” will be produced in HD using 3D techniques. The contract is worth $33K to GCM&E.

Racemind and H-line are competitors in the Chinese PR arena. “The selection of H-line Ogilvy reveals our competitive competency in th PR sector, said GCME chairman/CEO Jack Wei.


Full geographic and category rankings of '07 revenue for U.S. PR firms have been published on, including leading gainers and a new category, professional services.


BRIEFS: KCSA Strategic Communications has set up an integrated financial services practice handling IR, PR and marketing for companies in that sector. The firm has worked in the sector for years with clients like Alpha Financial Technologies, Genesis Lease Holding and ThinkEquity Partners. ...Angela Smalley, former PR manager at the Four Seasons Hotel Boston, has opened her own Boston firm, Momus Communications, to handle marketing comms., PR and web consulting. She had recently been freelancing. Info: ...Robert Falls & Co. PR, Cleveland, will be moving to the Terminal Tower in the Tower City section of the Cleveland in August. The firm will take two floors of the building. Info: ...Ideal Hall, Costa Mesa, Calif., was named a 2008 corporate honoree of the Court Appointed Special Advocates of Orange County. The firm, which has worked on a pro-bono basis with the non-profit since 2003, was honored at the group’s annual “Celebration for Children” earlier this month. ...Sage Communications, Vienna, Va., was awarded a federal supply schedule by the General Services Administration in the advertising and intergrated marketing services categories after meeting requirements to become a government supplier. The firm can pitch for federal work in PR, advertising, market research and other disciplines.


New York Area

DKC, New York/EcoHangers Media, green marketer of environmentally friendly hangers, as AOR for PR.

Stanton Communications, New York/ICO Global Communications, satellite comms., for a national media relations campaign through the summer and late 2008 supporting the launch of an ICO satellite in mid-April. SC also picked up Fourth & Goal,. for comms. counsel, national media outreach and event planning, and MorganFrankling, professional and IT services, for strategic counsel and general PR support.

Utopia Communications, Red Bank, N.J./UNO Restaurant Holdings, parent of Uno Chicago Grill, UNO Food Group and other units, as AOR for PR, following a review. UNO wants Utopia to burnish its image as a “nutritionally transparent company,” among other tasks.

MWW Group, East Rutherford, N.J./Adecco Group, recruitment and workforce services, as AOR following a review, including national and regional media relations, an awards program and speakers’ bureau for its top U.S. execs. MWW’s Chicago office has picked up City Chase USA, reality-TV inspired urban races, for media relations to boost participation in races in eight cities.


Greenough Communications, Boston/WorldWinner, online casual game (Scrabble, Solitaire) competitions, for a brand awareness campaign and viral marketing.

Pan Communications, Andover, Mass./OKA b., footwear, as AOR for PR.

360jmg, Washington, D.C./Hannon Armstrong; LifeMatters, SoundExchange, Tilt Studio Foundation, and WorldWater & Solar Technology, for integrated marketing and branding work.

Brand Resources Group, Washington, D.C./Heart Rhythm Society and The National Center for Healthy Housing, as AOR for work including media relations, event management, trade show support and internal comms.

Arketi Group, Atlanta/Vector Consulting, IT professional staffing/recruiting firm, for corporate positioning.

Ambit Advertising and PR, Fort Lauderdale, Fla./People’s Trust Insurance Company, for PR.


Kohnstamm Communications, St. Paul, Minn./Atkins Nutritionals, as AOR for PR, following a review that included a Los Angeles and Boston-based firm. The low-carb diet company is re-branding and re-launching after a change of ownership and relocation. CRT/tanaka had the account.

Risdall Marketing Group, New Brighton, Minn./
United Business Mail, for branding, marketing, advertising and web dev.; Glacier Companies, for SEO, and Spineology, for PR.


Linhart PR, Denver, Colo./Rudi’s Organic Bakery, for national PR following a competitive pitch process.

Internet Edition, April 23, 2008, Page 6


VMS said it has enhanced two of its key services for radio monitoring and news transcripts.

The “integrated media intelligence” company said VMS-monitored radio segments now include both text and a link to the audio file. Users can click to preview radio news clips with the new service, called QuickListen.

VMS also said its news transcripts now include a link to a “QuickView” video clip or QuickListen audio clip.

The company is planning to unveil the next generation of its Insight software this year, as well as a new version of its advertising monitoring service AdSite. New editorial and quantative analytics services are in the works for later this year.


dna13 has launched a new on-demand monitoring and analysis service, dnaMonitor, covering print, TV and Internet content.

The service is a single dashboard for monitoring broadcast TV, Internet and blog content with unlimited ad-hoc searches and no per-clip charges, the company said.

dna said media hits are monitored in “near real-time” and search terms can be added and updated at will.

The service also allows for production of a virtual clipbook of content, which can then be scored and analyzed based on various factors like tonality, brand mentions and exclusivity.

UPCOMING: PR Society’s New York chapter will host its annual Big Apple Awards on May 22 at the Rainbow Room, 30 Rockefeller Plaza, at 6:00 p.m. The event includes an awards reception and dinner buffet, and post-awards celebration. Black tie optional. Tickets: $225. RSVP by May 14, 2008. Sponsorship opportunities are also available. More info:


George Lakoff, a cognitive scientist, linguist and author, has signed on as a strategic consultant at Fenton Communications.

The founder of the Rockridge Institute, a progressive think tank committed to the democratization of knowledge, also teaches at University of California at Berkeley.

Lakoff serves on the international advisory committee of Spain’s Prime Minister Jose Luis Zapatero.

His latest book, "The Political Mind: Why You Can’t Understand 21st Century Politics with an 18th Century Brain," will be released by Viking/Penguin in June.
David Fenton calls Lakoff "one of the best communications thinkers in the world."

FC, which is noted for its left-leaning client base, has 65 staffers in Washington, New York and San Francisco.



Bill McCue, client contact for The Bailiwick Co., to Dukas PR, New York, as a senior A/S. He was previously an senior A/E at Gibbs & Soell PR. Mike Bush was promoted to A/S in the firm’s tech practice.

Robert Laverty, VP of global communications for malaria initiatives at Novartis AG, to Eisai Corp., Woodcliff Lake, N.J., as VP of U.S. corporate comms. He was previously VP of external comm. and VP of global parma media relations at Novartis.

Justine Koenigsberg, senior director of corporate comms. at ViaCell, to CoNCERT Pharmaceuticals, Lexington, Mass., as senior director of corporate comms. and investor relations.

William Schulz, VP of comms. for the American Association for Justice, to the National Alliance for Public Charter Schools, Washington, D.C., as VP of comms. He was formerly chief of corporate comms. at Amtrak from 2000-06 and earlier directed public affairs at the U.S. Dept. of Transportation.

Kenneth Thorpe, a healthcare policy expert and chair of the Dept. of Health Policy and Management at the Rollins School of Public Health, Emory University, to APCO Worldwide’s international advisory council.

Jacqueline Snyder, brand planner, Grey Worldwide, to Kleber & Associates, Atlanta, as a senior A/E. He manages the firm’s Gerber Plumbing Fixtures integrated marketing account.

Cristal Cole, director of PR and special events for pop artist Romero Britto, to GolinHarris, Miami, as a VP. She previously served in the governor’s press office and was press secretary for the Florida Agency for Healthcare Administration.

Tracey Ellis, human resources manager for The Home Depot/Midwest region, to Carmichael Lynch Spong, Minneapolis, as director of talent.

Daniel Gore, director of strategic marketing for E Group, to Padilla Speer Beardsley, Minneapolis, as director of its B2B manufacturing practice.

Matthew Schiff, VP of marketing and business development at Dennison Media Group, to Cook & Schmid, San Diego, as an account manager. He was previously PR and brand manager at SCME Mortgage Bankers Inc.

Robert Kiernan, senior associate for Strategic Insight, to Maglev Wind Turbine Technologies, Sierra Vista, Ariz., as senior advisor for government and public affairs. He was formerly executive director of the Council on Superconductivity.


Keith Fernbach to VP of PR, Grand Central Marketing, New York. He was PR director. Andrew Yard was upped to senior A/D. The firm has also hired Meredith Gaffney as an AM from RedPeg Marketing.

Liz Miklya and Jake Reint to VP, Weber Shandwick, Minneapolis. Miklya joined WS in 2003 from a former Fox affiliate in the Twin Cities. Reint is a 12-year veteran of the firm and has overseen development of its Minnesota public affairs practice.

Internet Edition, April 23, 2008, Page 7

PRS BOYCOTTS O’DWYER’S (cont’d from 1)

The 1999 boycott, instituted by the PRS board headed by Sam Waltz, touched off a storm of criticism.

Twenty senior members publicly denounced the boycott.

Daniel Edelman, founder of Edelman, called it “childish”; Dennis McGrath, then chair of the Counselors Academy, called it “ludicrous”; PR author Fraser Seitel said PRS should not bar discussions “with anyone”; author Tom Harris said “stonewalling is a terrible idea for an association or any client”; Chicago counselor Herb Krause called it “ridiculous and contrary to everything PRS is supposed to stand for”; Fellow Bill Kostka was “appalled” by the boycott; author Richard Weiner said he would oppose a dues increase “until PRS gets its act together with O’Dwyer”; counselor Tom Preston of Versailles, Ky., said the board “committed an act of considerable stupidity, indefensible and quite narrow-minded,” and counselor Mitch Kozikowski said PRS “is making a joke of the whole profession.”

The 2000 board, at its first meeting in January of that year, lifted the boycott.

O’Dwyer Questions Called Time-Consuming

Sam Waltz, 1999 PRS president, said in April that O’Dwyer questions were taking too much leader and staff time and not enough PRS materials were being used in O’Dwyer stories.

A member charged in May that the directors had violated five sections of the PRS code including “giving due respect to the ideal of free inquiry and to the opinions of others.”

The complaint called on the entire board to resign as provided for in Article 17 (“a member shall, as soon as possible, sever relations with any organization or individual if such relationship requires conduct contrary to the articles of this Code”).

Rather than hear the charges in a judicial panel, as provided for in the bylaws, the board cancelled the entire code and unveiled a new one in 2000 that would no longer consider charges against individual members.

The new code, while asking members to swear to uphold the “highest standards of accuracy and truth” and agree to many other ethical practices, said it would only expel a member if the individual were “sanctioned by a government agency or convicted in a court of law.”

Senior members said the board, faced with itself being hauled before a judicial panel, simply removed the possibility of this happening to any member.

Violations of Articles 1, 3, 6, 15 & 17 Charged

The ethics complaint, sent to ethics chair Bob Frause and PRS COO Ray Gaulke, said the 17 directors violated Article 1 of the code which says members must deal “fairly” with the public, clients and fellow PR pros, and violated Article 3 which says members must give “due respect to the ideal of free inquiry and the opinions of others.”

The complaint said the board’s move to “silence a thorn in its side corrupts the channels of communications which is forbidden by Article 6 and also corrupts the processes of PRS’s own governance.”

The boycott was called “an attempt to quell dissenting views.”

Article 15 says members must report violations “promptly” and Article 17 says members must “sever relationships” with organizations that act contrary to the code, the complaint noted.

“There is no rational way the boycott can be construed as dealing fairly with its members and giving respect to free inquiry,” said the complaint.

Alleged Violators Were Prosecuted

Judicial panels and then the board itself had gone after alleged violators in the past including 1986 president Anthony Franco who had signed an SEC consent decree, and Summerlynne Harrison, who criticized four PRS members who met in 1983 with CIA head Bill Casey reportedly to give ideas for raising funds for the Contras of Nicaragua.

Franco quit PRS just as the board was ready to formally censure him.

Harrison, who had been asked to prepare a case against the PRS members but who then gave a copy of it to reporters (before she gave it to PRS, she said), was censured for discussing an ethics case in public. She said she talked to the press before she gave the complaint to the EB.

Another high-profile case was in 1973 when Ted Pincus of the Financial Relations Board signed a consent decree admitting that employees in his firm failed to adequately check statements in certain financial releases. He was not involved in the releases but accepted responsibility.

Pincus Case Was High Profile

Pincus said that FRB at the time was handling hundreds of financial accounts and he could not be on top of every one of them.

Faced with certain censure by the PRS board, he denounced the board’s threatened action against him and resigned.

Veteran PRS members, recalling the three cases above, said that if they had to face the embarrassment of public expulsion from PRS on ethics charges, or being forced to resign, then members of the PRS board should face the same music.

$197K Spent to Revamp Code

Instead of applying the old code to themselves, the board spent $93,229 in 1999 and $104,018 in 2000 to create a new Ethics Code that mostly resembled the old code with the exception of any enforcement mechanism.

Spending on ethics was zero in 1995, $3,846 in 1996, $1,557 in 1997 and $24,985 in 1998.

Ethics spending in 1999 included $93,229 in “code revision” ($20,147 for staff time; $32,984 for professional fees; $17,278 for travel, meals and hotels, and $19,007 for overhead) plus $14,341 for enforcement of the code.

Ethics spending in 2000 included $18,365 for code enforcement and $104,018 for code revision (including $42,811 staff time and $48,470 in overhead).

Only two “trials” of members had been held by the judicial panels between 1980 and 1999, said a 12-page “overview” of the ethics process dated Aug. 12, 1999, that was authored by Frause, who apparently was referring to the Franco and Harrison cases.

Internet Edition, April 23, 2008, Page 8




The PR Society’s latest boycott against us (page one) opens a Pandora’s box for PRS.

It would not have been instituted if leaders knew what happened after the 1999 boycott.

Not only did 20 veteran PRS members blast the boycott, but a member filed ethics charges against the entire board. The board had to destroy the old code and create a new one at a cost of $197K or face being tried by a judicial panel.

The new code was just a re-write of the old one absent enforcement. The national board could have just removed Articles 15 and 16 (relating to the power of judicial panels to “hear complaints” and “conduct proceedings”) and saved $197K.

The panels had a lot of power. Members were “obligated” to appear if called. Charges against the 17 directors seemed reasonable. “There is no rational way the boycott can be construed as dealing fairly with members and giving respect to free inquiry,” said the complaint.

Also facing the board was the problem of treasurer Lee Duffey’s firm being hit with well-publicized charges that it was creating anti-EIFS front groups in behalf of other construction materials.

The boycott was announced in April of 1999. The complaint was filed in May. In August, ethics chair Bob Frause sent a 12-page memo to 400+ leaders saying that over the past 3-6 years there had been a “serious change” in attitudes of PR pros and PRS members regarding ethical practices.

He claimed lawyers were now showing up to defend the accused who were fighting any charges and that a new and “workable” code was needed.

What had happened was that “serious” charges had been made against the board. Lawyers had been showing up for decades (Franco, Harrison and Pincus cases as described on P. 7). The accused had always fought charges. The Frause report was a smokescreen to distract attention from the board’s alleged ethical violations and the Duffey issue. The report posed 28 ethical topics not including the ethics of a press boycott and only asked if members should be forced to identify “front groups.”

Since this bullet was dodged, the 2008 board had nothing to guide it when it disclosed April 9 that it would “limit its contact with (Jack) O’Dwyer.” Actually, no PRS CEO had talked to us since March 20, 2006, when Cheryl Procter-Rogers told us not to call her again. She had asked us (via a letter from PRS’ law firm) to withdraw our statement that PRS was mis-informing members by not deferring about $2M in dues income. Instead, three accounting professors, provided with the PRS financials, agreed that deferring dues would be right for PRS.

What was our crime in 1999? That year was a tumultuous one for PRS. For the first time, members who were not even on the board, Kathy Lewton and Michael McDermott, were nominated for chair-elect and treasurer, respectively. Treasurer Lee Duffey, passed over although treasurers usually got to be chair-elect, ran anyway and lost. The board rejected the unanimous advice of the first strategic planning committee to remove APR throughout the bylaws. A $150K PRS/Rockefeller “believability” study ranked PR pros 43rd on a list of 45 sources. Tactics was not allowed to print the table. It carried nothing on a two-year Fellows study that found little regard for APR among recruiters. The executive committee voted COO Ray Gaulke a five-year contract starting in 2000 that lasted only one year and cost PRS $250K to settle.

We had also completed a ten-year study of PRS’s finances that raised questions including why was the deferred dues account drawn down from $904,767 in 1991 to $169,530 in 1995? Why was the Counselors Academy charged $165,954 for “travel” in 1990 when it usually spent only $15-$25K? Academy leaders denied unusual travel. The APR program lost $329,000 in1999, meaning it cost $1,413 in subsidies to create each of the 233 new APRs that year. There was a loss of $2.9M on APR from 1982-2002. The APRs were riding high at PRS, splurging on APR and conducting “attack PR” on us. We were banished for reporting facts and asking questions. The APRs had us roped off in a “pen” at the back of the 1999 Assembly, supervised by a uniformed guard. Waltz warned us that setting one foot outside that area would get us evicted for the day. Waltz was in U.S. Army Counterintelligence from 1967-70 and we concluded such tactics were being used on us.

PRS politics aside, the main issue today is that the members want back their printed directory, much preferring it to the annual conference that few attend (4% of members is PRS’ own statistic). A poll on which asked PRS members if they would prefer to keep the directory or keep the conference, drew 85%-15% in favor of the directory. Members have told us that for two years. Neither PRS nor any of the 110 chapters dares to conduct such a poll. Rank-and-file members will have to organize themselves to get back their directory. Their leaders have abandoned them for “politics.” Warning to anyone who borrows a member’s codes: unauthorized hacking is a crime.

Stonewalling pays. Philippe Krakowsky, XVP/strategy and corporate relations, Interpublic, got a pay boost from $550K in 2006 to $620K in 2007. CEO Michael Roth got a 24% jump to $1.4M, both being rewarded for good performance. IPG stock is about $8.25 vs. its all time high of $57. Krakowsky’s pay was based on “research” on similar posts which no doubt includes Patricia Sloan at Omnicom, and Fran Butera, Kevin McCormack and Feona McEwan at WPP. None of the above have answered our questions for years...Forbes did a mostly positive piece on WPP’s Martin Sorrell but failed to mention its huge debt ($6.63B on revenues of $12.3B), which is more than half of revenues. Debt/equity ratio is .83. The debt of WPP, OMC, IPG and Publicis is about $12B.

--Jack O'Dwyer


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