Why does Gary Pruitt still have a job?
Here’s the big question raised by McClatchy’s latest round of cuts affecting the N&O and the Charlotte Observer:
Why does CEO Gary Pruitt still have a job?
McClatchy yesterday cut 1,600 jobs, or 15 percent of its workforce nationwide. The N&O cut 78 positions, including 27 news positions, and cut pay of all other employees. It is the third round of cuts for the newspaper company and raises doubts about McClatchy’s survival over the long haul. And that raises questions about how citizens in many communities will get news and information so necessary for civic life.
The fact Pruitt still is running the show is astounding considering he guided the company through purchase of Knight-Ridder, a move that left McClatchy drowning in debt and is largely responsible for the news chain’s troubles. That purchase was based on the assumption that newspaper profits would continue to roll in–despite the fact there have been strong warnings of disaster for several years.
In this case, it’s not the economy, stupid, it’s stupid management. Duh.
Sure, Pruitt took a 15 percent pay cut as a signal he feels the pain of his employees. Sorry, Gary, that’s not pain, that’s an insult to everyone who works for you.
What happened to American corporations that makes them want to reward incompetence instead of putting failed CEOs like Pruitt in the unemployment line with the 1,600 people he fired?
There are many examples, like this one from USA Today: “His company lost $30.9 billion last year and it’s relying on government loans to stay in business, yet General Motors (GM) CEO Rick Wagoner received a pay package worth $14.9 million in 2008.”
He, too, is still on the job.
Japanese auto makers do it differently. Honda saw stalled sales, so it replaced its chief executive. Toyota, also feeling pinched profits, will replace most of its top management this year, according to Bloomberg.
Allowing corporations to be the playpens for chief executives helped get the country into this mess.
Or maybe I’m missing something up here in the ivy-covered halls. If anyone knows of even one good reason McClatchy should not look for better management, please speak up. Just post a comment. We all want to know. Posted by Leroy Towns