Greedy Bankers…Oh Wait

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The former chief executive of The New York Times Company received $24million when she was forced out of her job, it has emerged.

Janet Robinson received the huge pay-off – larger than the company’s profits from the last four years combined – despite overseeing an 80 per cent fall in the company’s share price.

She presided over seven years of falling profits and squeezed revenues in the wake of the economic downturn and the threat to newspapers’ business models posed by the internet.

Ms Robinson’s ‘golden parachute’ deal has been criticised by Times staff, who face the prospect of lay-offs and a pension freeze in response to the firm’s ongoing struggles.

The 61-year-old former CEO, a 28-year veteran with the company, has yet to be replaced by chairman Arthur Sulzberger Jr, who is temporarily acting in her place.

Ms Robinson’s package includes a $4.5million consulting fee that The Times had agreed to pay as part of her exit package, as well as pension benefits and performance-related payments.

In 2011, her last year with the company, it lost $39.7million, but she was paid a salary of $1million.

Her $24million departure package is equivalent to around 2.4 per cent of the entire market value of the company.

The New York Times Company, which owns the Boston Globe, the International Herald Tribune and About.com as well as its flagship newspaper, insists it is on the right track despite the troubles of the Robinson years.

It had 406,000 paying digital subscribers at the end of 2011 after it rolled out an online pay system last year.

The focus on an improved digital strategy helped circulation revenue grow five per cent to $241.6million in the fourth quarter of last year, according to the company.

However, it is currently lacking a digital boss as well as a CEO, after former digital head Martin Nisenholtz retired.

Attribution:  Daily Mail

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