Guild protests NY Times execs compensation
The Boston Newspaper Guild, which is the biggest employee union at The Boston Globe, is circulating a petition that asks its members to sign a letter to protest the compensation packages of the two top executives at The New York Times Co., the Globe's owner.
Last year, the Times threatened to shut down the Globe if workers and unions did not agree to $20 million in concessions such as salary reductions. Given those circumstances, the guild contends that Times Co. chairman Arthur Sulzberger Jr. and chief executive Janet L. Robinson were grossly overpaid.
In a draft letter circulated to Globe guild members yesterday, the guild wrote: "We were astonished to learn that the two of you received more than $10 million in stock awards and options in 2009. During the year for which you were so richly rewarded, the 600 members of the Boston Newspaper Guild gave back almost the same amount in pay and benefit reductions -- $10 million, to be exact - after you threatened to close our newspaper, lay off hundreds of people, and strip Massachusetts of its largest newspaper. Previously, New York Times officials told us that we needed to accept pay cuts and unpaid days off along with higher health costs, the elimination of our retirement programs and other benefit reductions in order to save the Boston Globe. But the recent SEC filings make it look like almost all of our sacrifices went to pay the two of you."
The draft letter added, "Needless to say, we are insulted, but we also feel betrayed that you would reap such profits at a time when so many of your employees have lost so much."
According to a recent filing with the Securities and Exchange Commission, Robinson earned $6.3 million in total compensation last year, up from $4.8 million in 2008. Sulzberger, who is also publisher of the company's flagship newspaper in New York, earned $6 million in total compensation last year, up from $2.3 million in 2008. According to the report, their combined compensation last year included about $2 million in salary, $2.9 million in stock awards and options, $4.7 million in cash incentive awards, and $2.6 million in additional expenses for their pension and deferred compensation.
A Times Co. spokeswoman said the company declined to comment.
To read a copy of the letter sent to guild members, please click on "Full entry."
We were astonished to learn that the two of you received more than $10 million in stock awards and options in 2009. During the year for which you were so richly rewarded, the 600 members of the Boston Newspaper Guild gave back almost the same amount in pay and benefit reductions -- $10 million, to be exact -- after you threatened to close our newspaper, lay off hundreds of people, and strip Massachusetts of its largest newspaper.
Previously, New York Times officials told us that we needed to accept pay cuts and unpaid days off along with higher health costs, the elimination of our retirement programs and other benefit reductions in order to save the Boston Globe.
But the recent SEC filings make it look like almost all of our sacrifices went to pay the two of you.
For most of us up here at your newspaper in Boston, 2009 was financially disastrous, as Guild members were forced to move to cheaper housing, take second jobs, scrap vacations and make other drastic measures to offset more than a 15 percent reduction in our pay and benefits. We made these sacrifices under duress, yes, but also because we understood that the Globe faced real financial challenges in an economic downturn and a dramatically changing marketplace. We did it because we care deeply about our newspaper, its mission, and the critical role it serves in our region and our nation. And we did it with an expectation that our sacrifices would be shared across the company.
The two of you gave us the impression that you understood all that when you visited the Globe last winter. You even personally thanked us for giving up so much for the greater good. Now we learn that, all the while, you were in line for astronomical bonuses over and above your million dollar salaries. Ms. Robinson’s compensation rose 32 percent last year; Mr. Sulzberger’s overall pay more than doubled. While you’ve stopped contributing to our modest retirement plans, the value of your own pensions has increased sharply.
Needless to say, we are insulted, but we also feel betrayed that you would reap such profits at a time when so many of your employees have lost so much. Our nation’s history is filled with corporate executives who profited handily by cutting workers’ salaries and eliminating jobs. But few of those figures helmed newspapers that have done eloquent, important work in revealing and condemning such practices. For this reason, we are hopeful – as both shareholders and employee – that you will govern this company with morality and a basic sense of fairness.
We have appealed to you once before this year about the Times’ seemingly excessive largesse to its executives in such troubled times. The Times Co. handed out more than $500,000 in cash bonuses to the Boston Globe's publisher on his retirement -- just as the employees he left behind were forced to schedule eight unpaid days off. We hope that, this time, you will give us the courtesy of a reply and an explanation.
Now that the Times has shown it can afford to lavish so much on a few top executives, we expect our pay and benefit cuts will be restored in the coming months. We look forward to hearing from you.
Sincerely,
Members of the Boston Newspaper Guild
Comment
Permalink
E-mail
