Bill Doskoch: Media, BPS*, Film, Minutiae

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Postmedia finds spare change under couch for top executives

When we last checked in with Postmedia, Canada’s largest newspaper company was looking to cut an additional 20 per cent from salary costs, mainly due to a disastrous plunge in print advertising revenues.

That’s why it’s heartening to know, in this month before Christmas, that the company managed to find $2.3 million in bonuses for its top five executives.From the Globe and Mail (“Postmedia executives receive $2.3-million in retention bonuses“):

Canada’s largest newspaper chain has endured a trying 2016 fiscal year that saw the company merge competing newsrooms in major cities, cut hundreds of jobs, offer staff buyouts and close a printing plant in London, Ont. The filings show that the five executives were not awarded regular short-term incentives because they missed a consolidated operating-profit target of $125-million, recording just $82.3-million for the fiscal year.

The retention bonuses were created “to ensure that key employees remained with Postmedia both during and after the Recapitalization Transaction,” which was announced on July 7 and closed on Oct. 5, according to the documents.

“It’s not uncommon in transactions like this for a key employee-retention program to be put into place as it was here, which was approved by the board and benchmarked against other similar transactions that have happened,” said Phyllise Gelfand, the company’s spokeswoman. …

Total amounts awarded under the plan include $900,000 to president and chief executive officer Paul Godfrey, $450,000 to chief financial officer Doug Lamb, $425,000 to chief operating officer Andrew MacLeod, $300,000 to executive vice-president and legal counsel Jeffrey Haar and $200,000 to Gordon Fisher, president of the National Post and the Pacific Newspaper Group.

Wed, November 23 2016 » Main Page, Media