The McClatchy Co.’s revenue has dropped 13.2 % in the first months of 2008, prompting its credit rating to be lowered again Tuesday. Last year, the company’s revenue fell by almost 8% and the company’s stock price plunged, losing about two-thirds of its value. However, CEO Gary Pruitt made $4.6 million in total compensation in 2007. Well… that’s $1 million less than in 2006, when McClatchy bought the Knight-Ridder papers.
According to the SacBee, a company SEC filing shows Pruitt’s $4.6 million salary includes $1.1 million in base pay, an $800,000 performance bonus, about $2 million in stock and option grants and other forms of compensation. But now McClatchy officials believe the proxy statement overstated Pruitt’s true compensation in 2007, stating he actually made $2.9 million last year.
Mmmmm… that’s still not bad, considering all the cuts in the industry to “save money.”
Moody’s downgrade takes McClatchy deeper into non-investment grade, or junk bond, status.