According to an Associated Press story published March 13, the CEO of Gannett Co., received a 36 percent raise last year.
Gannett, the largest newspaper company in America, publishes 85 daily newspapers, including USA Today, The Detroit Free Press and The Indianapolis Star. Craig Dubow, the company's CEO, made about $5.8 million in 2006 before adding about $2 million worth of Gannett stock to his salary.
Gannett's stock has plummeted over the past several years and lost about half of its value in the past year alone. This certainly seems like a strange strategy - "Hmmm...we aren't making money. I know, maybe I should give myself a raise."
Gannett has gained notoriety for cutting the staffs of their media properties in the interest of saving money. Obviously, the CEO's raise isn't worth much right now, considering how his company's stock has fallen, but perhaps Dubow sees success lurking somewhere on the horizon. Whether that success comes from a prudent business model or reducing budgets by downsizing remains to be seen.