Just three weeks ago it was announced that Lee Enterprises CEO Mary Junck received a $500,000 bonus for …well, who knows what? … while her longtime sidekick, CFO Carl Schmidt, was handed $250,000. Today we get news the Mary and Carl didn’t do so well the last quarter. Some highlights today’s Lee Enterprises Q2 earnings report:
* The newspaper chain lost $26.6 million, compared with a $1.5 million in the 2011 quarter.
* Revenue fell 3.6% to $172.3 million, from $178.7 million a year ago.
* Advertising revenue declined 5.3%.
* Employee compensation decreased 5.2%
* Average number of full-time equivalent employees was down 7.5%.
UPDATE: On my Facebook page, I noted that “in the middle of the Lee bankruptcy mess, she was named AP board chairman. A very clubby group those newspaper execs!” One person, who asked not to be named, sent this email in reaction:
Many of us AP retirees shudder at the thought of Gary Pruitt coming in as AP CEO and Junck taking over as the new board chair. The venerable news cooperative that has served the industry, and the world, well for 166 years will be led by two CEOs who made huge misjudgments along the way that put the survival of their companies in jeopardy and saddled them with debt that they are continuing to struggle with. I guess we can hope they learned from their mistakes and will bring a more rational approach to a worldwide news organization.