The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, November 4, 2009, Page 1
ACQUIRED IN $40M+ DEAL
Connection Inc., a consulting firm, is acquiring crisis
shop Sitrick & Co. and Brinko Assocs., a small restructuring
firm, in a deal that it values at $43.3M, which includes
$28.2M in cash, restricted stock and earn-outs based on
Sitrick will head Sitrick Brinko Group and offer corporate
advisory and restructuring services. He reports to Don Murray,
CEO of Resources. John Brinko is president & COO of
the new group.
said S&C fits with its first-in capabilities
as corporate issues arise requiring immediate communications
strategy formulation and execution.
sees a paradigm shift occurring in the advisory and
restructuring business due to the cash squeeze. Companies
understand that to get the best talent they have to
pay the going rate for pricey lawyers, turnaround professionals
and communications executives. He believes SBG can
offer them a very attractive quality and financial
pitches the line that its services could mean the difference
between a company surviving and emerging from a restructuring
to one going into liquidation.
firm has counseled about 300 companies that have declared
Chapter 11 during the past 20 years. That list includes
Worldcom, Collins & Aikman, Barney's New York and Global
SAATCHI WIN BIG SWINE FLU PACT
teamed with M&C Saatchi, defeated eight other combinations
and single firms to develop and guide a federally funded
$7M swine flu public education campaign in California.
Dept. of Public Health issued an RFP on Oct. 8 for the lucrative
assignment, which includes PR and advertising for an expedited,
innovative push to raise and maintain public awareness
of the H1N1 virus among the state's diverse population.
independent PR firm and Publicis-owned ad agency knocked
off several teams, including GolinHarris/Campbell-Ewald,
Weber Shandwick/McCann Erickson, Hill & Knowlton/Ground
Zero, Paine PR/Runyon Saltzman & Einhorn, Ogilvy PR
Worldwide/Mering Carson, Rogers Group/Fraser Communications,
along with single bids by Katz & Associates and Vitro.
Edelman/Saatchi pact runs from Oct. 21, 2009 to Sept. 30,
2010. The $7M budget is for the initial term, but two year-long
options are possible.
states have used federal funds to run public information
campaigns on the H1N1 outbreak.
Q3 NET CRASHES 56%
reported a 55.5 percent nosedive in third-quarter net income
to $17.2M as clients scaled back marketing outlays. Revenue
plunged 18% during Q3 to $1.4B as existing clients trimmed
outlays by 14.2%.
Michael Roth believes the worst is over. Client sentiment
has stabilized, he said. Roth retains a cautious
outlook, making it difficult to predict what growth
will look like in 2010.
parent of Weber Shandwick, MWW Group and GolinHarris pared
5,100 people from the payroll during the past 12 months.
will continue to realign cost base against conservative
top line assumptions, to be in position to deliver
significantly improved profitability next year. IPG
will fully capitalize on advertising recovery
and achieve long-term success, according to
lost $16.3M for the nine-month period compared to an $85.3M
08 profit. Revenue fell 16.5% to $4.2B. Severance
charges rose from $39.9M to $94.9M.
SLATED FOR $9M RAIL PR
second time around, Ogilvy PR Worldwide is slated to win
a $9M PR pact to support Californias push for a high-speed
bid is being recommended to the California High Speed Rail
Authoritys board Nov. 5.
WPP unit was not a finalist in the first review, when Fleishman-Hillard,
Porter Novelli, Edelman and incumbent Deutschman Comms.
Group were in it.
initial RFP process over the summer was halted ahead of
an award to Omnicoms Mercury Public Affairs after
media reports questioned the firms ties to the committee
overseeing the selection as well as the Schwarzenegger administration.
Mercury said last week in pulling out of the process that
it believes internal politics sidelined its
PRS 3Q DOWN 45%; HARDSHIP
The PR Society reported
third quarter revenues of $1,639,309, a 45.1% decline from
$2,986,334 in the same 2008 quarter.
Treasurer Tom Eppes
said $1.1 million of the $1,347,025 decline was due to a
PRS had recognized
as income in 3Q of 2008 nearly $1.1M in advance
fees for the conference while it did not do so in 2009 because
this years conference is taking place in November
and revenue is deferred to that time, he explained
in a report to Assembly delegates and a report on the PRSAY
section of prsa.org.
(Continued on page 7)
Edition, November 4, 2009, Page 2
SEEKS PR TO REHAB STALIN
is looking for an international PR firm to rehabilitate
the image of Joseph Stalin, the ruthless leader who murdered
up to 20M of its citizens.
to a report in euobserver.com,
Russian news agency Ria Novosti will run the campaign out
of Brussels, capital of the European Union.
has teamed with RJI Companies, a strategic communications
outfit with offices in Washington, London and Zurich, to
recruit a Top Ten firm for a pro-Stalin pitch.
pro-Stalin PR campaign would highlight his role in defeating
Nazi Germany and building the Soviet Union into a global
power in the aftermath of WWII.
leaders began a de-Stalinization program upon his death
in 1953 to erase the cult of personality surrounding the
rise in Russian nationalization under Vladimir Putin has
resulted in a re-Stalinization effort. Stalin finished third
in a 2008 TV station contest to name the greatest Russian
in history. He was leading the contest until the producer
appealed to viewers to vote for somebody else.
Kremlin recently unveiled a study guide for high school
teachers that called Stalin "one of the most successful
leaders of the USSR."
said Russians should not be ashamed of Stalin because "other
countries have also known bleak and terrible moments,"
according to an item in the New York Times.
Ketchum handles PR for Russia.
MATTIA ENROLLS AT YALE
Mattia, who retired as The Coca-Colas Companys
top PR executive in March, has taken a new chief communications
post at Yale University.
takes over for Helaine Klasky, who stepped down in July
and now heads public affairs at General Electric.
60-year-old executive will serve as chief communications
officer and special advisor to Yales president, Richard
Levin, starting on Nov. 1.
oversee the public affairs office and the university's press
officers, and work directly with Levin as part of the president's
said in a statement that Yale is one of a small handful
of institutions capable of making the intersection
of academia, business, civil society and government work
for the betterment of mankind.
headed public affairs and communications for Coca-Cola in
three-plus years at the company after serving as a VP of
communications for EDS and, earlier, director of communications
for Ford and VP of its Lincoln Mercury unit during the 1990s.
stints included executive VP at Hill & Knowlton in Hong
Kong and a start to his PR career at IBM in the early 1980s.
Sustainability and social responsibility were key focuses
of his term at Coca-Cola.
told the Yale Daily News that he had two other offers
one from a PR firm and another from an NGO. The Ivy
League institution endured national scrutiny last month
after a student was murdered in a campus lab.
DEPT. INDICTS FOREIGN LOBBYIST
Justice Dept. has indicted Robert Cabelly of C/R International
for violating U.S. sanctions lodged on Sudan, acting as
an unregistered agent of a foreign power, money laundering,
passport fraud, and making false statements.
former State Dept. and Fleishman-Hillard executive, according
to the indictment, represented Sudan from 05 to mid-07
without U.S approval as required by the sanctions regulation.
Currently, Sudan is on the State Dept.s sponsors of
reported Sept. 19, 2005 that C/R International received
a $530K contract with Sudan to promote the countrys
north/south peace agreement, and highlight Sudan's role
in fighting terror.
pact drew heated opposition from Virginia Congressman Frank
Wolf and human rights activists protesting Sudans
butchery in its Darfur region. C/R informed the Justice
Dept. in February 2006 that it terminated the Sudan account.
Justice alleges the 61-year-old Cabelly misrepresented
to U.S. officials the nature of his relationship with Sudan.
It believes Cabelly engaged in "illicit contractual
relationships with Sudan's oil industry "and sought
foreign investment for that impoverished African nation.
Justice Dept. contends that Cabelly directed a French oil
company to deposit over $180K of his fees received
into an offshore account that he maintained in the Cook
Islands, an account he used to launder the funds in order
to conceal the fact that it was proceeds obtained in violation
of the sanctions.
convicted of all accounts, Cabelly could be sentenced to
more than 50 years in jail.
International has worked for Angola, Nigeria's Base Petroleum,
Turkey, Equatorial Guinea, South Africa and Ethiopia.
CAMPAIGN SETS UP PA UNIT
U.S. military-led campaign in Afghanistan has set up a new
24-hour-a-day public affairs unit at Kabul's airport to
handle media questions about operations in the country.
PA outpost - dubbed the International Security Assistance
Force Joint Command Media Operations has been established
at Kabul International Airport North in a new NATO command
center activated last month.
countries more than 100K troops, estimated by the
end of 09 are involved in operations in Afghanistan
under the auspices of NATO. The U.S. represents about 70
percent of that.
PA move comes as the campaign draws more media scrutiny
among a Taliban offensive and as the Obama administration
reviews the eight-year-old-war with a decision expected
before the end of 09.
press inquiries about embedding, strategy, policy and other
issues continue to be directed to ISAF Headquarters PA in
Stanley McChrystal heads ISAF as commander, with Lt. Gen.
J.C. Buddton (U.K.) as deputy commander. Canadian Brigadier-General
Eric Tremblay is NATO's spokesperson there.
Edition, November 4, 2009, Page 3
FINISHED AT FORBES
Forbes is axing another 40 staffers from Forbes magazine
because the family owned publication has been hit
hard by both the severe recession and the seismic shifts
wrought by the web.
memo assured remaining staffers that Forbes Media-- following
the latest cutbacks will not only weather these
storms, but ultimately emerge as a stronger company, well-positioned
to expand and prosper in the years ahead.
says todays tribulations are a more intense
version of what we underwent eight years ago, particularly
company cut about 100 staffers during the past year.
SHUTTERS BOSTON BUREAU
Wall Street Journal is closing its nine-member Boston
office due to the economic slump, editor-in-chief Robert
Thomson informed staffers on Oct. 30.
remain in the midst of a profound downturn in advertising
revenue and thus must think the unthinkable, he wrote
in an email.
praised the truly great reporting under the generalship
of Gary Putka over many, many years and said Beantown
staffers could apply for jobs elsewhere on the paper.
WSJ plans to keep an investigative function
in Boston. The WSJs money and investing team
will cover the city's mutual fund and the New York City
education unit will pick up some of the slack.
MarketWatch staff and Newswires bureau are not affected
by the shutdown.
assured staffers there are no plans, nascent or otherwise,
to close any other U.S. or international bureaus.
CIRC DROPS SOME MORE
newspaper circulation dropped 10.6 percent while Sunday
sales slipped 7.5 percent for the six-month period ended
Sept. 30, according to the Audit Bureau of Circulations.
was an average of 44M newspapers sold each day for the first
half of the year, which equals the sales level of the 1940s.
Wall Street Journal topped USA Today as the
No. 1 circulation paper.
WSJ, which includes online subscriptions in total circ,
showed a 0.6 percent gain to 2 million.
Today dropped 17.1 percent to 1.9M. It was hurt by the slowdown
in the travel market as hotels account for a big chunk of
out the Top Five, the New York Times dipped 7.3 percent
to 927,851, Los Angeles Times dropped 11 percent
to 657,851 and Washington Post fell 6.4 percent to
San Francisco Chronicle suffered the biggest loss
among the Top 25.
was down 25.8 percent to 251,782. The Star-Ledger
(-22.2 percent to 246,006), Dallas Morning News (-22.1
percent to 263,810), and Boston Globe (-18.5 to 264,105)
VET WARREN TAKES CHI READER POST
Warren, who was co-managing editor of the Chicago Tribune
and bureau chief of its Washington bureau, took the president/publisher
post of the Chicago Reader on Nov. 2.
Gilbert, interim head of CR parent Creative Loafing, says
the hire shows readers that compelling and provocative
journalism remains the papers overarching mission.
The Reader prints 100K issues that are distributed free
weekly. Its website draws more than 750K weekly page views.
56, says the Reader will thrive if it makes those
in power squirm and yet is willing to entertain and have
fun. Warren began a journalism career at the Star-Ledger
and also reported for the Chicago Sun-Times. The
Reader post was vacant since July with the exit of Kirk
MacDonald following a change in ownership.
TO EXIT NY OBSERVER
McGeveran, who took over in May as editor of the New
York Observer, is leaving yearend to start a new venture.
He assumed the editorship from Peter Kaplan.
Jared Kushner, via a statement, credited McGeveran for revamping
and reinvigorating our website and launching the
says he will help Kushner find his replacement.
ESTABLISHES MEDIA LAB
College, which is part of New York Citys public college
system, has launched Studio H, a journalism
laboratory thanks to a $1M gift from Harnisch Family Philanthropies.
facility is equipped with 24 work stations with the latest
in editing software plus video and digital cameras. It also
has multimedia presentation capabilities.
Rosenberg, chair of the journalism department and writing
professions, said the facility will "transform a program
that was within the English department just a year ago into
one of the nations premier undergraduate journalism
Ann and William Harnisch called Studio H a bold investment
that will "produce returns that we can't yet imagine.
has named eight directors who will take their board seats
when the online company is spun off from Time Warner under
CEO Tim Armstrong.
group includes Richard Dalzell, ex-senior VP & chief
information officer at Amazon.com,
Karen Dykstra, ex-CFO at Automatic Data Processing, Bill
Hambrecht, founder of WR Hambrecht & Co. investment
firm, Patricia Mitchell, CEO of the Paley Center for Media,
Michael Powell, senior advisor to Providence Equity and
ex-Justice Dept. chief of staff in its enforcement division,
Fredric Reynolds, former CFO of CBS, Jim Stengel, owner
of Jim Stengel Co. think tank, and Jim Wiatt, ex-CEO of
William Morris Agency.
wants to separate AOL from its operations by the end of
news continued on next page)
Edition, November 4, 2009, Page 4
REVIEWS STATE OF MEDIA FOR FCC
Federal Communications Commission has tapped Steven Waldman,
co-founder of Beliefnet.com
religious website, to lead an initiative to assess the state
of the media and make recommendations to ensure a vibrant
will join the FCCs Office of Strategic Planning and
serve as senior advisor to chairman Julius Genachowski.
a fact-finding process, Waldman will develop recommendations
to make sure that all Americans receive the information,
educational content and news they seek, according
to the FCC release.
reached out to Waldman following three major reports (Knight
Commission on the Information Needs of Communities, Pew
Project for Excellence in Journalism and Columbia Graduate
School of Journalism) that chronicled the challenges facing
the media and called for new thinking on the
regulatory front. Genachowski believes the U.S. is at
a pivotal moment in the history of the media and communications
because of game-changing new technologies as well as the
FCC understands that any U.S. government support/bailout
of the media will not lead to Uncle Sam dictating
or controlling the content of the news or other communications
protected by the First Amendment.
to launching Beliefnet., Waldman was national editor for
U.S. News & World Report and national correspondent
for Newsweek. He is cutting ties with BeliefNet and
News Corp., which acquired BN in 2007.
CALLS IT A DAY AT CLEAR CHANNEL
Mays is stepping down as president and CFO at Clear Channel
Communications, the radio giant that was taken over via
a $24B deal engineered by Bain Capital and THL Partners.
a successor is found, Mays will become vice chairman of
the country's biggest radio chain, concentrating on strategic
Mays, Randall's brother, is CEO of the firm that was set
up by his father, Lowry, in 1972.
TO THE CHRONICLE FORETOLD
Rodriguez in the November Harpers celebrated the history
of the San Francisco Chronicle, which he says under
current Hearst Co. ownership is a mere shadow of its former
piece details the founding of the Daily Dramatic Chronicle
in 1865 by the teen-aged de Young brothers. They launched
the paper with a borrowed $20 gold piece.
Daily Dramatic Chronicle, which morphed into the Daily
Morning Chronicle, catered to the stranded young
men seeking entertainment in the wild and wholly city
that saw its population soar from 57,000 in 1860 to 150,000
ten years later, wrote Rodriguez. Oscar Wilde noted at the
time: It is an odd thing, but everyone who disappears
is said to be in San Francisco.
Chronicle was delivered to the citys saloons, cafés
and reading rooms jam packed with news of Gold Rush City's
theaters, operas, minstrel shows, circuses, brothels, shootings,
bank robberies, shipping schedules, gold strikes, drownings,
fires and suicides. The Chron borrowed a tone of merriment
and swagger from the city it daily invented, according
author called todays version of the Chronicle a no-nothing
paper, noting, like other newspapers, the Chronicle
once had an intimate relationship with readers. Wrote Rodriguez:
The relationship between observer and observed was
reciprocal: the newspaper described the city; the newspaper,
in turn, was sustained by readers who were curious about
the strangers that circumstance had placed proximate to
notes that not one of four friends who recently died wanted
to have a paid obit in the Chron: As much as any vacancy
in the Chronicle I can point to, the dearth of obituaries
measures its decline.
NOT AMUSED BY KFC PR CRASH
Fried Chicken drew the ire of the United Nations last week
after a person dressed as Kentucky Fried Chicken's beloved
Colonel Sanders was dispatched by the company, slipped into
the General Assembly on Monday and posed for pictures with
assembly president Ali Treki.
PR agency, Weber Shandwick, had a hand in the play as part
of an effort to promote the franchises new grilled
should not have happened that I will stress, and
very strongly, Michele Montas, spokeswoman for UN
Secretary General Ban Ki-moon, told Canada's National
Horton of Robert Marston Associates wasnt amused,
either, blogging: It is a measure of the desperation
of marketers that they are doing anything to get attention.
U.N. has threatened legal action following the incident,
which was complimented with a tongue-in-cheek letter from
KFC president Roger Eaton to the secretary general asking
to register Grilled Nation as the 193th member
Maynard, Manager of PR for KFC, said: KFC has the
utmost respect for the United Nations and this lighthearted
event in New York City was in no way meant to undermine
the important work that the U.N. does around the world.
said the Colonel was in New York for a sampling event outside
the United Nations and while serving free chicken on First
Avenue was invited inside by a U.N. staff member, along
with a photographer who was documenting the event.
has promoted executive editor Wes
editor of both AutoWeek and autoweek.com.
Hes been with the title since 1989.
on the role of executive editor is former Managing editor
who slides into the executive editor role, adding responsibility
as the day-to-day gatekeeper of copy flow, intermediary
with the copy desk and feature assignment editor. He joined
last year scaled back to a twice-a-month schedule from weekly
4, 2009, Page 5
OF PR FIRMS
RIPS PR RFP PROCESS
Sorrell, CEO of advertising and PR conglomerate WPP, blasted
the request for proposal process at a London confab last
week for requiring PR firms to essentially pitch ideas for
free unlike any other professional services field.
when do McKinsey, Bain and BCG sit in front of clients and
deliver for nothing? he said at the CorpComms Magazine
and PR Consultants Association meeting, according to a transcript.
He noted that one global participant in a recent pitch in
which WPP was involved submitted a 36,000-page document
at no cost to the potential clients.
expressed frustration that change wasnt likely because
there will always be competitors that will pitch at no cost.
also said that other industries change pricing structure
or cancel contracts when clients change the terms of service,
but PR is alone in absorbing such charges.
title of the event was Emerging From the Recession,
but Sorrell noted in his keynote that he doesnt think
the industry has yet emerged. But there is more confidence
CEOs and CMOs feel better. But it hasnt translated
from their hearts and their minds into a sort of check-signing
ability. If you said to me what will WPP look like in five
years time, I would say to you It will be more Asian
and it will be more Central-Eastern European, more African,
more Middle Eastern, more Latin American.
Byrne, who heads Weber Shandwicks U.K. operation,
said at the event that the recession, in some ways, has
actually been good for the firms business.
of you that have spent a lot of time firing people and closing
up offices may not feel that way. But in boom times, PR
focuses on some things with clients that still sometimes
are intangible reputation, creativity, he said.
To some people, theyve become the raison dêtre
for being in PR. And actually the raison dêtre
of PR is helping clients to sell stuff and helping clients
to be successful.
has unveiled an iPhone application to aggregate technology
news from around the world. Called Lewis news 360, the app
is an "intuitive" news collector that provides
links to tech stories directly to iPhones. ...Access
Diego, and The
Communications Strategy Group,
Boston, have formed an alliance to offer services to both
firms clients. ...Artha Resources Corp., a Vancouver-based
mining company, said it retained Bernie
for corporate comms. and marketing on a $6K a month retainer
and 175K incentive stock options. ...The International
has tapped Jim
chairman of Newark, N.J.-based Winning
as U.S. representative to the London-based group. Forty-two
countries are represented on the council, a group of senior
PR practitioners. ...MWW
launched MWW Pulse, an online panel of thought leaders
for opinion, answering questions and addressing trends in
Global Communications, New York/Xante Liqueur, for
PR in the U.S. to handle its national roll-out, including
media relations, event and influencer marketing, and trade
outreach. Fox Greenberg PR previously had the account.
Communications, Vorhees, N.J./Street Corner, franchisor
of mall convenience stores, for PR.
Kluger PR, New York/Dennis Lin, MD, for media support
and promotion of the sex therapists psychiatric practice.
PR, New York/Millennium Hotels & Resorts, as
AOR for PR for its 15 hotel and resort properties in the
U.S. The work includes strategic planning, media relations
and a marketing comms. campaign for the national brand and
its individual properties.
New York/Sahara Media, open social platform developer and
operator of womens lifestyle website, Honeymag.com,
as AOR for PR and IR.
Communications, Andover, Mass./Valassis, advertising
services; Schakra, products development; Mobile Armor, data
protection; Big Machines, on-demand sales software, and
Small Business Computing, green computer maker.
PR Worldwide, Washington, D.C./Centers for Disease
Control Division of Cancer Prevention and Control, for branding
and comms. outreach for its National Breast and Cervical
Cancer Early Detection Program; Dept. of Health and Human
Services, for a three-year national media campaign to reduce
healthcare-associated infections; Federal Emergency Management
Agencys Office of Environmental Planning and Historic
Preservation, for a media outreach audit; National Institute
on Drug Abuses Office of Science Policy and Comms.,
to communicate results of research via traditional and social
media; National Institute of Diabetes and Digestive and
Kidney Diseases education program, and the U.S. Dept.
of Veterans Affairs, for social marketing to elevate the
visibility of its brain injury program.
Richmond, Va./Virginia Community College Systems Great
Expectations program, for branding, donor awareness and
development of an online resource center.
Communications, Miami, Fla./INGLOT Cosmetics, Poland-based
company, as AOR to lead PR in North America. The client
opened a New York flagship location and is planning more
Agency PR, Santa Rosa, Calif./The Mendocino Winegrape
& Wine Commission, as AOR for PR and marketing for the
group of 83 wineries and 343 grape growers.
Gardiner, San Diego/San Diego Hospice, for advertising,
social media strategy and training; Planned Parenthood of
San Diego and Riverside Counties, for exploratory branding
for a new clinic, as well as social media strategy, and
Jeff and Jer Showgram, radio duo, for web design and social
Edition, November 4, 2009, Page 6
said its CisionPoint PR software platform has surpassed
5,000 customers and is approaching 20,000 users as it marks
two years since its release.
which reported 4,001 total active subscription customers
through the third quarter, has released an upgrade of its
small business edition PR software to provide more custom
options for users home page and navigation settings.
company said the changes, like drag and drop
options for customizing page layouts, are a response to
customers who wanted to personalize the look and feel of
also said client 7-Eleven has re-upped its pact for government
relations software and the software company also said it
has partnered with e-research and education publisher Gale
to provide PRWeb releases through Gale sources.
software platform MYPRGenie
unveiled new features at the Blog World & New Media
Expo 2009 earlier this month.
service now allows journalists and bloggers to sign on and
search instantly for courses and other information to develop
says more than 3,000 PR pros can be queried by topic, and
materials like articles, quotes and videos can be accessed.
an online PR service, said Jeffrey Windler LLC, a Dallas
architectural firm, has tapped the company for strategic
TO TRACK NFL JERSEY SPONSORSHIP
Row Analytics, a sponsorship and measurement firm, has been
tapped by the National Football Leagues Seattle Seahawks
to gauge the teams practice jersey partnership for
the 2009 season.
firm, part of Front Row Marketing Services in Philadelphia,
will track the effectiveness of the Seahawks sponsorship
deal with Microsofts Big Search Engine for the 09
season which has the companys logo appearing on the
teams practice jerseys. Marketing elements of the
deal online and in broadcast media are among the tenets
it will watch.
Marsh, manager of FRA, said practice jersey sponsorships
are at the forefront of new revenue for the
NFL, which does not yet allow corporate logos on game uniforms
other than the apparel designer.
said it renewed its support of the South Florida PR Network,
which counts 700 members throughout the Sunshine State.
The networking group said its free membership is made possible
by sponsors like BW and Marketwire, among others. BW has
an outpost in Plantation, Fla. ...International
Association of Business Communicators
said the early-bird deadline for its 2010 Gold Quill Awards
is set at Jan. 27, 2010. Final deadline is Feb. 3. Towers
Perrin is the sponsor of this years awards, which
attract hundreds of entries around the world. The awards
have 27 categories across three divisions of communications.
Information is at www.iabc.com/awards/gq.
Aronsohn, a 20-year veteran of the corporate and
political scene, has moved to Interpublics MWW Group
from Pfizers public affairs unit. He was previously
comms. director for former New Jersey Gov. Jim McGreevy,
who resigned from office. The Ridgewood councilman also
made a bid for a N.J. Congressional seat and served eight
years in the Clinton Administration.
Coley, chief spokesman and comms. director for the
late-Sen. Edward Kennedy and the key committee he chaired,
is slated to join Brunswick Group in the capital on Nov.
30. Coley spent two years as New Jersey Gov. Jon Corzines
press secretary before returning to D.C. in 2008. He handled
the national media for Kennedy and counseled the Senate
Health, Education, Labor and Pensions Committee, known as
HELP. Hell take a directors post at Brunswick.
Noyes, a staff writer for National Journals
CongressDaily and contributor to the parent magazine,
is moving to Facebook next month to manage public policy
communications. The 29-year-old reporter has worked at the
NJ group for the past three years and focuses on technology
Didda, partner at organizational change consultancy
Oliver Wyman Delta, to construction corporation Skanska
USA, New York, as VP of comms., a new post overseeing internal
and external comms. for its USA Building and USA Civil units.
Didda, who reports to chief HR and comms. officer Tom Crane,
was an EVP and GM at Edelman/San Francisco.
Mirenda to VP, global communications, Moodys
Corp., New York. He joined the corporate comms. unit in
2006 after stints at Thomson Corp.s RIA unit and Ogilvy
Helm to chief food and nutrition strategist for Weber
Shandwick in North America. She is a 15-year WS/Chicago
veteran and a registered dietician. She pens the NutritionUnplugged.com
Lewis to senior PR counselor, Maccabee Group, Minneapolis,
handling food, healthcare and tech clients. The firm has
also hired Christina
Doucet, senior PR and comms. specialist for Forthright
and the National Arbitration Forum, as an A/E.
Hanson, president of HMA PR in Phoenix, is the 2009
recipient of the Jeff Ferris Volunteer of the Year Award
from Northern Arizona Univ.s Alumni Association. Hanson
has been the professional advisor to the PR Student Society
chapter at the school for mre than 10 years.
Edition, November 4, 2009, Page 7
SOCIETY 3Q DOWN 45%
members questioned the sudden need to defer income since
the 2009 conference, like the 2008 conference, is in Q4.
This years conference, from Nov. 7-10, is about two
weeks later than last years.
income for the nine months declined 60% from $2.7M to $1.08M.
said most of the decline was in the seminars/webinars business
of PRS and in the 19 special interest sections.
total as of Sept. 30 was 21,054.
income declined 9.4% to $3,826,664 from $4,225,987.
in his report to the Assembly delegates, but which was not
in his PRSAY posting, said that PRS has created a Hardship
Program for unemployed and disabled members to reduce their
national dues by $110 (from the regular rate of $225).
monthly program of free webinars and seminars is also being
offered to members, he noted, and PRS is rolling back
the registration fee for the conference (although
no new amount was given).
dues can now be paid quarterly and conference registration
(regular rate is $995) can be paid on an installment
plan. Section memberships are available on a free
has been no mention so far of the financials in the Media
Room of PRS. The balance sheets and income statements
for the six months and first half are only available in
the members area of the PRS website, which is now
labeled MyPRSA, replacing Membernet.
stories in the Media Room currently are that PRS is launching
an advocacy campaign for the PR industry and
it has a redesigned website.
PRS press release Aug. 18 announced a new two-year contract
for Murray (unanimously approved by the board)
and said He has taken a number of concrete steps to
more efficiently and effectively serve the wants and needs
of our members, while at the same time achieving record
financial results for the organization over the past two
990 Not Filed
has yet to file IRS Form 990 that would show Murrays
pay, occupancy costs and legal costs. This is a record lateness
for the filing which is not finally due until Nov. 15 (after
the national conference). Initial filing deadline was May
Q1 income was down 11.3%; six months income down 16.9%,
and Q3 income down 45.1%.
meanwhile, were down 2% in Q1; down 8.5% in the six months,
and down 12.5% in the nine months.
for the nine months fell 57% to $216,416 from $510,935.
Sponsorship income fell 41% to $367,923 from $628,887. Staff
pay/fringes for Q3 totaled $1,363,599 or 83.2% of income
for the quarter of $1,639,309. Staff pay/fringes for the
nine months were $4,037,229 or 61% of income for the nine
months of $6,604,585. They were $3,979,521 or $57,708 less
in 2008. Payroll costs were $5.4 million in all of 2008
or 47% of overall costs of $11.4 million.
redesigned website of PRS has removed the names of more
than 45 staffers. Only seven individuals are now shown:
Murray; CFO Phil Bonaventura; VP-marketing Barbara McDonald;
VP John Robinson; VP Karla Voth; AVP Melissa Yahre, and
VP-PR Arthur Yann.
Rejects Audiocasting Assembly
Cherenson, PRS chair, and parliamentarian Colette Trohan
have argued against audiocasting the Assembly Nov. 7. Cherenson
said it would be technically difficult while Trohan said
it might disturb the delegates.
members who have investigated audio and video streaming
of the Assembly said costs would be only a couple of hundred
dollars for live audiostreaming and only a few
thousand for videostreamimg (assuming that fewer than 500
members tune in at any one time). Audiostreaming costs from
25 to 50 cents per person simultaneously accessing the stream
while video costs from $2 to $4 per person. Extensive facts
on video and audiostreaming are available at streamalot.com.
would be no further costs for providing the complete record
to the 21,000 PRS members and others for the indefinite
KRAUS CHAIRS CPRF
Kraus, APCO Worldwide founder & CEO, is the new chair
of the Council of PR Firms. She succeeds Ray Kotcher of
Shandwicks Andy Polansky slides into the chair-elect
Cripps, Council president, praised Kraus as one of
our industrys most talented and fearless leaders.
Among Kraus goals: PRs ownership of digital
media and strategy.
D.C.-based APCO is the third largest independent firm with
08 fees of $112.4M, trailing Edelman and Waggener
led the 2004 management buyout of APCO from Arnold &
Council has announced a fresh batch of board members. That
roster includes Dave Senay (CEO of Fleishman-Hillard), Donna
Imperato (Cohn & Wolfe), Laura Tomasetti (360 Public
Relations), Christine Barney (rbb Public Relations), Jennifer
Prosek (CJP Communications) and Melissa Waggener Zorkin
EXEC LANDS AT PEPSI
Land, the former Edelman Sports exec most recently in charge
of marketing the Breeders Cup, has moved to Pepsi
North America as senior VP of communications for its beverage
left the Breeders Cup in September for the Pepsi post
after two years as chief marketing officer for the horse
was with Edelman for nearly 10 years, serving as global
managing director focused on its sports accounts. Earlier
stints included the NBA (director of marketing comms.) and
Kraft (director of European promotions), as well as Cohn
Edition, November 4, 2009,
hard-hit newspaper industry is probing
readers for what they want. The answer: Watchdog reporting.
Papers that can no longer afford it are funding team
investigators like ProPublica, Center for Investigating
Reporting, and Center for Public Integrity.
five-page article in the October Editor & Publisher
details the scramble that newspapers are in to provide what
many of them see as their main serviceinvestigative
No. 1 thing readers tell us they want is watchdog reporting,
said Arizona Republic editor Randy Lovely.
such reporting can be so expensive and time-consuming, involving
lawsuits for information and chasing reluctant sources,
that papers including the New York Times, Washington
Post, Chicago Tribune and Los Angeles Times
are buying in-depth pieces from the non-profit ProPublica,
New York (www.propublica.org).
NYT magazines cover story Aug. 30 on Hurricane Katrinas
impact on a New Orleans hospital was written by ProPublica,
which has grown to 19 reporters since its founding in January
report took two years to assemble and cost $400,000, said
Newark Star-Ledger, which has lost a third of its
news staff, has used six ProPublica stories or packages.
details the carnage at big dailies (Boston Globe
editorial staff down 35% to 352 reporters; Cleveland
Plain Dealer down 70 reporters; Atlanta Journal-Constitution
down 55 to 180; Sacramento Bee down 85 to 175, and
Charlotte Observer down 80 to 170.
will follow media that dig out the facts
even though story subjects put up resistance.
hoping the new board of the PR Society, to be headed by
Gary McCormick of the Scripps organization, one of the great
names in journalism, will look deeply into PRS and clear
up the record on several counts.
should have an investigative task force, a truth squad
that would probe any charges of wrongful behavior and assure
members and others that the Society has a squeaky clean
prime candidate for investigation is the $197,247 cost of
re-writing the Code of Ethics in 1999-2000.
is an astounding figure for what was a re-write that removed
the Codes enforcement mechanism (judicial panels that
costs were $62,958. This is the equivalent of one staffer
working full time on the re-write for a year. No way!
we have $67,477 for overhead allocation for
the two years.
seems excessive. Whose costs were these really?
big item is travel, meaning some actual airline
and other travel costs but also meals and hotels. This totaled
$29,313 for the two years. How much was meals for the staff
and volunteers who were on the Ethics Board then headed
by Bob Frause? How much of the $563,531 in overall travel
costs in 2008 is really meals for the staff and leaders?
again became head of the EB in 2008 when Gail Baker suddenly
quite as chair in March after two months. That ought to
be investigated also. Frause will be North Pacific director
on the 2010 PRS board.
ethics re-write expense that needs looking into is $32,984
in 1999 for professional fees. PRS apparently
paid this amount to some outside consulting firm that gave
the latest skinny on ethics.
was the firm and what did it do?
new topic needing investigation is why
is Philadelphia again scheduled for the national conference
(2013) when it was just there in 2007?!
over is New York which drew a record 4,000 attendees in
2004 and which loses the least amount of money (because
theres no need to provide travel, room and board expenses
for the 35 and more staffers who go to the conference).
names used to be listed in the conference registrants list
that was provided to registrants. We cant find any
such list this year and neither can other conference registrants.
Also missing: list of Assembly delegates. No one we know
has been able to obtain it.
PRS Truth Squad Task Force could also study
the sale of authors works without their permission
that went on for more than 15 years to 1993. We have a box
full of evidence for it.
is promising a multi-year, multi-level advocacy
effort called The Business Case for PR. But
it should clean its own flag before it starts waving it
PR Society, supposedly the world leader
in PR ethics, shows its true colors when it comes to reporting
last week did it finally report the first three quarters.
The first half should have been reported no later than August.
of separately reporting Q3, which showed a 45.1% decline
in revenues to $1,639,309, PRS and treasurer Tom Eppes lumped
it in with the non-reported first half and said revenues
were down only 26.3% to $6,604,585. This forced reporters
and others to subtract six-month figures from nine-months
to get the quarter.
posted on the PRSAY section of the PRS site (instead of
page one of the PRS site) that Q3 was really not down $1.3M
because of a significant timing difference.
2008, explained Eppes, PRS had recognized in Q3 nearly $1.1M
in revenue from the conference that took place Oct. 25-28
since the 2009 conference is in November, the revenue is
deferred until that time, Eppes further explained.
loved seeing that word deferred. Since both
October and November are in Q4, why was the conference revenue
booked as cash last year and as deferred revenue this year?
The 2009 conference is only about two weeks later.
think that outside CPA firm PKF put its foot down and told
PRS to stop booking revenues for future services as cash.
PKF told PRS to defer half of the $3.8M in nine months dues
or $1.9M since they are also unearned, that would drop the
Societys claimed unrestricted net assets
from $2.4M to about $500,000.
dues income down 9.4% and PRS having to resort to a hefty
price cut (letting hardship cases pay $110 less
in dues), the Society must do more to trim costs.
staffers have been dismissed, says the Eppes report, but
payroll costs actually grew to $4,037,229 for the nine months,
the only one of 12 categories of expenses to increase.
says expenses were cut $1,159,000 but when we deduct 2009
expenses of $7,477,485 from the 2008 expenses of $8,284,876,
we get only $807,391.
reworked website of PRS now leaves out the names of all
staffers except seven of the top ones so we cant check
to see who left.
income is down mostly for the tutorial programs of PRS and
its interest sections.