Thursday, March 25, 2010

Ahead of union vote, a look at Lee executives salaries

On Saturday, St. Louis Newspaper Guild members at the St. Louis Post-Dispatch will vote on Lee's "final offer" five-year contract. That offer includes a 6 percent pay cut through September 2015, a one-week unpaid furlough in 2010, 2011 and 2012, and a possible "snap-back" salary increase in 2013, 2014 and 2015.

Which gives us an opportunity to look at the salary of Lee's leaders. According to the company's proxy statement released in January:

Name2009 salary2009 compensation2008 salary2008 compensation
CEO Mary E. Junck$833,654$882,454$850,000$1,089,506
CFO Carl G. Schmidt$472,731$612,831$482,000$681,492
VP Greg R. Veon$354,058$381,337$361,000$487,315
VP Kevin D. Mowbray$328,558$353,328$335,000$452,383
VP Vytenis P. Kuraitis$262,846$283,413$268,000$370,266

Salaries for each executive decreased by 1.92 percent -- or approximately a one-week unpaid furlough. Total compensation includes bonuses, stock awards and retirement account contributions; fewer of those were awarded. From 2007 to 2008, each executive's salary increased by more than 3 percent.

If Junck followed the salary guidelines and furloughs the union will vote on:
6 percent pay cutFurloughSnap-backAnnual salary
Furlough represents one-week's salary, calculated by dividing the annual salary by 52 weeks. The "snap-back" is added if the company increases its annual revenue by at least 2 percent, which I am assuming in this example, and will result in a salary increase of 2.5 percent in the last three years of the contract.

If Mowbray, who in addition to being a vice president of publishing is also the publisher of the St. Louis Post-Dispatch, followed the same salary reduction and furlough schedule:
6 percent pay cutFurloughSnap-back Annual salary

From 2008 to 2015, Junck's and Mowbray's salaries would have increased by 1.41 percent (assuming, of course, that there were no bonuses or other additional compensation).


Anonymous said...


Anonymous said...

What about their stock options? (Not that they're worth much these days...)

Anonymous said...

The Guild approved the contract, according to

They probably had no choice. The continuation of the Post-Dispatch into another Lee small-town clone continues.