Janet Robinson Consulting Pay
The handy investment calculator on the Times corporate Web site shows that $10,000 invested in NYT stock the day Ms. Robinson took over as CEO, on December 27, 2004, would be worth $1,855.14 today, a decline of 81.45%.
The price of the stock went from $40.59 when she took over to $7.53 today, and though some dividends were paid out early in her tenure as CEO, the dividend has since been suspended.
It's all almost enough to be grist for one of those angry New York Times editorials or business section columns about executives whose outsized pay bears no relation to performance.
In this case, the board hasn't fired the chairman, Arthur Sulzberger Jr., whose family controls the board and the company through a special class of stock. Ms. Robinson could perhaps argue that she earned her pay by serving as someone outside the family for the family to blame for the poor performance.
Which do you think accounts for more of the $4.5 million, the non-competition covenant or the non-disparagement covenant? Mark your calendar for two years from now when the non-disparagement agreement expires.
"No minimum number of hours and a maximum of 15 per month. If she works the maximum amount of hours, which is doubtful, she will earn roughly $25,000 per hour, which is pretty significant for a company that is struggling financially.
In addition to the pension and consulting contract, Robinson is also owed a bonus for 2011 which has yet to be determined, but her most recent bonus was for $1.85 million.
Even though the Times is on the hook to Robinson for $4.5 million, they may be better off just paying her and not asking for her advice, based on her recent track record at the paper."
|Janet L. Robinson|
New York Times Editors Respond To Staffers' Protest
|Executive Editor Jill Abramson|