Read on Twitter
Gannett’s two-CEO structure is going to go down to one CEO, with Paul Bascobert out and Mike Reed, technically an employee of private equity firm Fortress, being the sole CEO.
I am glad to see the company move to one CEO. I am sad that they chose Reed, who regularly insults his employees, over Bascobert, who might be a human being.
This isn’t the first time Reed has emerged victorious from cuts. GateHouse CEO Kirk Davis left during the merger and Reed stayed on. In this case, technically, Reed’s job was eliminated so … he just got rid of Bascobert and took over Bascobert’s job. https://twitter.com/BosBizDon/status/1158473402132377600
I'd like to take a look back at some of the highlights from Reed's last couple of years.
In May 2019, Mike Reed told Poynter there were about 10 layoffs. I found 160. When confronted about this, he claimed reporting these facts was “misleading,” and the layoffs would allow us to do “more, not less, quality local journalism.”
He even went further, saying it was a “lie” to say the number of layoffs could get up to 200. While I could only publicly report on 160 layoffs, I had dozens more that I was unable to publicly report in my spreadsheet. https://twitter.com/apantazi/status/1132671275904708608
In June 2018, Mike Reed said the company only laid off journalists who weren’t passionate and weren’t good at their job. He specifically pointed to the Columbus Dispatch as a place where reporters weren't doing enough work so they got laid off. https://twitter.com/apantazi/status/1202702724548177920
Mike Reed also disparaged his own publications on a recent town hall call, saying places like USA Today that described a shareholder proposal as a “poison pill,” were haters who “don’t know anything.” https://twitter.com/apantazi/status/1250821432176783360
In February, when confronted with a devastating earnings report, Mike Reed blamed employees, saying the revenue decline was due to “employee distraction caused by the acquisition and the announcement of our synergy target.” https://www.fool.com/earnings/call-transcripts/2020/02/27/gannett-co-inc-gci-q4-2019-earnings-call-transcrip.aspx
Meanwhile, Gannett paid $36 million to Fortress for Reed’s management. Billionaire investor Leon Cooperman called Reed a liar and said the payout was “morally wrong.” https://twitter.com/apantazi/status/1246476373998387201
Let's add up all the golden parachutes Gannett has given. $2.1 million to former CEO Kirk Davis. $5.9 million to former CFO Ali Engel, $7.5 million to CEO Paul Bascobert. That's $15.5 million out the door to executives in the last few months.
But yeah, the company claims it *has* to violate federal labor law by imposing furloughs on its employees due to an economic emergency that it couldn't foresee. https://twitter.com/apantazi/status/1247151821912715266
Only one Gannett executive said he wouldn't take pay while we were on furlough: Paul Bascobert.
Another Gannett executive said he refused to share how much he was making: Mike Reed.
Reed stays and Bascobert goes. https://twitter.com/DavidBauerlein/status/1273723682377076736
Another Gannett executive said he refused to share how much he was making: Mike Reed.
Reed stays and Bascobert goes. https://twitter.com/DavidBauerlein/status/1273723682377076736
