The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, April 23, 2008, Page 1
LANDS $4.5M S.D. AIRPORT EXPANSION
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.
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
SDCRAA board approved PNs contract for media relations
and public outreach at its April 3 meeting. PN worked on
a $500K 07 project for the authority regarding the
expansions environmental impact.
TO KKR TO BOOST OUTREACH
Mehlman, who ran President Bushs 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.
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 firms shareholders, companies,
as well as governments, NGOs and other entities.
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 Bushs
re-election, he was named chairman of the RNC.
ARABIA SLICES H&HS RETAINER
Arabia has sliced Hogan & Hartsons monthly retainer
to $33,333.33 from $50,000 according to the lobbying firms
revised contract with the Kingdom.
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.
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.
Goldfield, H&Hs senior intl affairs advisor,
is working the Saudi Arabian business. He is vice chairman
of Stonebridge International, the global strategy firm founded
by President Clintons national security advisor Sandy
ROTH GETS 24% PAY HIKE
CEO Michael Roth received a 23.9 percent pay hike at the
March board meeting, according to the ad/PR congloms
proxy released April 18. His salary is now $1.4M
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 Roths role in the firms
transformation, improvements in pre-tax earnings,
operating margin, revenue growth and becoming Sarbanes-Oxley
compliant. The board members also wanted to ensure
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.
Krakowsky, executive VP/strategy and corporate relations,
also received a pay boost. The boards compensation
committee increased his salary to $620K from $550K effective
April 1, 2007.
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.
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
is a founding member of Powell Tate and a veteran of Hill
& Knowlton and Carl Byoir & Assocs.
the political front, Sandor was spokesperson for the George
Bushs 1988 political campaign and communications advisor
to then-Transportation Secretary Sam Skinner.
PRS BOARD VOTES ODWYER
has decided to limit its contact with (Jack) ODwyer,
said an e-mail to leaders of the Society April
9. The letter said ODwyer 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)
Edition, April 23, 2008, Page 2
JEWS FORM D.C. GROUP
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.
PR firm Rabinowitz/Dorf Communications is handling PR for
the groups launch. The firm is headed by Matt Dorf,
former Jewish liaison for Howard Deans 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.
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
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.
include ex-Sen. Lincoln Chafee (R-R.I.), ex-Rep. Thomas
Downy (D-N.Y.), Eli Pariser, executive director of MoveOn.org,
and Markos Kounalakis, president/publisher, The Washington
BRUNSWICK GUIDES DELTA-NW
Brunswick Group is guiding
the Delta/Northwest Airlines merger to create the worlds
biggest carrier and Americas premier global
The deal is pitched as
a win-win situation that helps offset rising
fuel costs and increased competition triggered by the Open
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
The new airline will be
based at Deltas 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.)
Lipin and Cindy Leggett-Flynn are promoting the Delta merger.
WS AIDS HARRY POTTER SUIT
Weber Shandwick is providing
PR counsel to Warner Bros. Entertainment in the global entertainment
companys 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 ODwyers.
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.
RSRs 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 RDRs 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.
CONSTELLATION CREATES EX AFFAIRS
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 companys PAC contributions,
and relations with trade groups and peer companies.
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 Californias
importance to the companys 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 Clintons
second term. CB is based in Fairport, N.Y.
M&S LANDS $1M ROAD PR
PACT IN TX
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.
& Co., and Ledbetter & Associates also pitched for
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
doesnt 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.
Edition, April 23, 2008, Page 3
Q1 REVENUES SLIP
posted an 8.4 percent slide in first-quarter revenues of
$1.7M compared to $1.8M in Q1 '07.
company said a weak advertising environment in its publishing
and broadcasting operations, especially in the latter half
of March, hurt its operations.
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.
slumping real estate market hurt classified advertising,
but Gannet said national ads in USA Today and USA
Weekend were a bright spot.
INK FLOWS AT N.Y. TIMES CO.
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.
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.
admitted to a challenging time for the media industry,
but said she is diligently managing NYTCs business
for the long term.
company recorded a one percent drop in operating cost, which
is the fifth straight quarter of decline.
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
NYTCs 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
said it had the 11th largest presence on the web with 50.4M
unique visitors in March, up from 43.5M in 07. NYTimes.com
grew to 18.9M unique visitors, up from 14.5M in 07.
Times is cutting its newsroom count by 100 staffers.
ADULTS TAKE TO BLOGS
gay and lesbian adults (51 percent) say they read blogs
than heterosexual adults (36 percent), according to a Harris
Interactive/Witeck-Combs Comms. survey.
noted a similar survey in November 2006 found only 32 percent
of gay and lesbian adults said they read blogs.
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.
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.
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.
large percentage - 57% - of gay men said they belong to
a social networking site, compared with 37 percent of heterosexuals.
survey polled 2,733 U.S. adults in March.
ANALYZES CHINAS PR WOES
April 28 BusinessWeek asked MWW Groups Michael
Kempner, Abernathy MacGregors Jim Abernathy and Sitrick
& Co.s Michael Sitrick on how they would advise
China about its Beijing Olympic Games crisis.
recommends China organize an international panel on Tibet.
That would at least show the world that China is willing
to discuss Tibet.
suggests reaching out to human rights groups and show them
that China has made some progress on the rights front.
said China has little understanding of the art of
image-crafting. He also believes the best PR in the
world cannot overcome geopolitical realities.
told BW its easy to hate the Chinese Government,
but its 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.
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.
would scour the press, look for inaccuracies and aggressively
set the record straight.
Chinese should address the controversy on 60 Minutes
and then launch a full-court press with Olympians explaining
what the Games mean to them.
noted a possible fallout: a backlash against the protestors.
UNLOADS THREE BLOGS
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.
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.
has been spun off to managing editor Ken Layne and will
be part of the Blogads network of sites, which includes
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.
Wonkette, once of GMs 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.
even if not, better safe than sorry, and better too early
than too late, he wrote.
news continued on next page)
Edition, April 23, 2008, Page 4
STEPS UP CHINA RIGHTS CAMPAIGN
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.
chair symbolizes Pens campaign to pressure China to
free before the beginning of the Beijing Olympics the 38
writers and journalists imprisoned for their writing.
We are Ready for Free Expression campaign is
a take on Chinas We Are Ready slogan to
build public support for the Games.
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.
was charged with posting anti-government articles on the
Internet and accepting funds to transfer to family members
of jailed dissidents.
lawyer, Li Jianqiang, has been invited to accept Yangs
award. Chinese officials revoked Lis law license for
is looking for a PR firm to buff its image.
THOMSON, REUTERS FINALIZE
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 Thomsons
North American and European operations, known as Thomson
Financial News and AFX News, respectively.
The company trades as
TRIL on the London stock exchange.
HEALTH MAG INSERT GOES METRO
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.
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, blogs.washingtonpost.com/thefix/,
and entertainment blog Celebritology, blogs.washingtonpost.com/celebritology.
Dolgin, executive editor of Life & Style,
has been named VP and executive editor of The Knots
print properties. She was previously fashion director at
All You magazine and senior editor at More
and Parenting Magazine.
Jones, director of networking programming for Hearst
Digital Media, was named VP/executive editor of The Knots
online sites. She was previously with Time Inc. for four
years, serving as site editor of Parenting.com and AOL Parenting.
She previously was site director for Meredith Corp.s
AmericanBaby.com and HealthyKids.com, and was senior producer
for Disneys Family.com. 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. Thats what
she told Entertainment Publicists Professional Societys
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].
Mejias-Rentas, entertainment editor at La Opinion,
the nations 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].
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 doesnt live in Compton and speak Spanish.
His email is
Edition, April 23,
2008, Page 5
OF PR FIRMS
STRIKES PA ALLIANCE IN CA
& Knowlton has aligned with Sacramento-based government
and public affairs firm Thomas Advocacy.
struck an alliance with Los Angeles PA and issues management
firm Sugerman Communications Group in October 2007.
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.
OGILVY INKS CHINA VIDEO PACT
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.
COMPLETE PR FIRM RANKINGS
Full geographic and category
rankings of '07 revenue for U.S. PR firms have been published
including leading gainers and a new category, professional
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: momuscommunications.com.
...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: robertfalls.com.
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 groups annual
Celebration for Children earlier this month.
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
New York/EcoHangers Media, green marketer of environmentally
friendly hangers, as AOR for PR.
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.
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.
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. MWWs
Chicago office has picked up City Chase USA, reality-TV
inspired urban races, for media relations to boost participation
in races in eight cities.
Communications, Boston/WorldWinner, online casual
game (Scrabble, Solitaire) competitions, for a brand awareness
campaign and viral marketing.
Communications, Andover, Mass./OKA b., footwear,
as AOR for PR.
Washington, D.C./Hannon Armstrong; LifeMatters, SoundExchange,
Tilt Studio Foundation, and WorldWater & Solar Technology,
for integrated marketing and branding work.
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.
Group, Atlanta/Vector Consulting, IT professional
staffing/recruiting firm, for corporate positioning.
Advertising and PR, Fort Lauderdale, Fla./Peoples
Trust Insurance Company, for PR.
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.
Marketing Group, New Brighton, Minn./
United Business Mail, for branding, marketing, advertising
and web dev.; Glacier Companies, for SEO, and Spineology,
PR, Denver, Colo./Rudis Organic Bakery, for
national PR following a competitive pitch process.
Edition, April 23, 2008, Page 6
said it has enhanced two of its key services for radio monitoring
and news transcripts.
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.
also said its news transcripts now include a link to a QuickView
video clip or QuickListen audio clip.
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
DNA INTEGRATES MONITORING
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.
Societys 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: http://www.prsany.org/.
FENTON ADDS DEEP
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
Lakoff serves on the international
advisory committee of Spains Prime Minister Jose Luis
His latest book, "The
Political Mind: Why You Cant 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.
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 firms tech practice.
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.
senior director of corporate comms. at ViaCell, to CoNCERT
Pharmaceuticals, Lexington, Mass., as senior director of
corporate comms. and investor relations.
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.
healthcare policy expert and chair of the Dept. of Health
Policy and Management at the Rollins School of Public Health,
Emory University, to APCO Worldwides international
planner, Grey Worldwide, to Kleber & Associates, Atlanta,
as a senior A/E. He manages the firms Gerber Plumbing
Fixtures integrated marketing account.
of PR and special events for pop artist Romero Britto, to
GolinHarris, Miami, as a VP. She previously served in the
governors press office and was press secretary for
the Florida Agency for Healthcare Administration.
resources manager for The Home Depot/Midwest region, to
Carmichael Lynch Spong, Minneapolis, as director of talent.
of strategic marketing for E Group, to Padilla Speer Beardsley,
Minneapolis, as director of its B2B manufacturing practice.
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
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.
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
as an AM from RedPeg Marketing.
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.
Edition, April 23, 2008, Page 7
1999 boycott, instituted by the PRS board headed by Sam
Waltz, touched off a storm of criticism.
senior members publicly denounced the boycott.
of Edelman, called it childish; Dennis
chair of the Counselors Academy, called it ludicrous;
PR author Fraser
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
it ridiculous and contrary to everything PRS is supposed
to stand for; Fellow Bill
appalled by the boycott; author Richard
he would oppose a dues increase until PRS gets its
act together with ODwyer; counselor Tom
Versailles, Ky., said the board committed an act of
considerable stupidity, indefensible and quite narrow-minded,
and counselor Mitch
said PRS is making a joke of the whole profession.
2000 board, at its first meeting in January of that year,
lifted the boycott.
Questions Called Time-Consuming
Sam Waltz, 1999 PRS president,
said in April that ODwyer questions were taking too
much leader and staff time and not enough PRS materials
were being used in ODwyer 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
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.
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
boards 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 PRSs 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
There is no rational
way the boycott can be construed as dealing fairly with
its members and giving respect to free inquiry, said
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
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
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 boards 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
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
Spending on ethics was
zero in 1995, $3,846 in 1996, $1,557 in 1997 and $24,985
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
Edition, April 23, 2008,
PR Societys latest boycott against us (page
one) opens a Pandoras box for PRS.
would not have been instituted if leaders knew what happened
after the 1999 boycott.
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.
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
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.
facing the board was the problem of treasurer Lee Duffeys
firm being hit with well-publicized charges that it was
creating anti-EIFS front groups in behalf of other construction
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.
claimed lawyers were now showing up to defend the accused
who were fighting any charges and that a new and workable
code was needed.
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
boards 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.
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) ODwyer. 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.
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
We had also completed
a ten-year study of PRSs 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.
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 odwyerpr.com 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 members codes: unauthorized
hacking is a crime.
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. Krakowskys
pay was based on research on similar posts which
no doubt includes Patricia
Sloan at Omnicom,
and Fran Butera,
and Feona McEwan
at WPP. None of the above have answered our questions for
did a mostly
positive piece on WPPs 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.