Gannett boss volunteers for 17% pay cut

by Dan Leahul, Brand Republic 04-Nov-08, 11:40

CHICAGO - Gannett chief executive Craig Dubow has chosen to take a 17% pay cut as the US publisher prepares to lay off hundreds due to falling advertising revenue.

In an employee memo, Dubow announced on Monday that he would take a voluntary cut of $200,000 (£126,000) from his $1.2m (£758,000) salary starting now through 2009. All company and divisional officers will also have their salaries frozen for 2009.

Dubow said: "All Gannett employees are making deep sacrifices for their company."

The news comes as the US publisher prepares to cut 10% of its staff from its 80-plus local daily titles.

These layoffs come on top of the 10% reduction announced in August, which shed more than 1,100 jobs.

The layoffs are not expected to affect the publisher's largest title, USA Today.

Dubow, in a memo, said: "I have great empathy for those employees and their families who have lost their jobs. I also recognize that our employees are working harder and harder to produce results in a challenging business environment.

"But I firmly believe the steps we are taking now are necessary and will serve as the foundation for our future success. I want to thank all our employees for their patience and loyalty during these difficult times."

Last week Gannett said that its third-quarter profits fell 32%.

Gannett's net income came in at $158m (£100m), a steep drop from one year ago when net income was $234m.