Saturday, March 13, 2010
Among bloggers, at least, I stand second to none in my enthusiasm for high executive compensation, but even I think this is beyond the Pale. Outrageous!
My take on this is Sulzberger knows his company is becoming increasingly worthless, so he's taking benefits in cash rather than try to sell stock that may have no buyers. In other words, he's looting the ship before it sinks entirely.
It is unprogressive to apply the same standards used to measure the unfair compensation paid to the evil bankers, insurance executives and other businesses to movie type people, self-proclaimed protectors of the down-trodden, "green" and environmental types and, yes, newspaper types.
I'm confident that his labor unions will understand why Sully needs that cash more than they.
Hard to read minds but fun to try.
I agree that Sulzberger and family intend to get as much cash as possible out ASAP.
Income tax rates are not going down. And the value of print media almost certainly will.
Even so the NYT will continue for decades, reading it is an act of faith and the cost is both low and incidental.
The role of Slim is far less clear. He sometimes makes risky investments and he may have thought the NYT could be turned around.
It is more likely that Slim also made some secret agreements with both the Sulzbergers and with the union officers. They will stay bribed. But exactly what Slim got in return is ?????????