Dow Jones acts just like any other company would
By giving its executives severance packages in case the company is sold, Dow Jones & Co. has shown that it will act just like any other company would, which hurts theÂ argument that the editorial integrity of its Wall Street Journal newspaper must be maintained, writes Bloomberg News columnist David Pauly.
Pauly wrote, “Yet, Dow Jones has just shown a decided lack of integrity on another issue — executive pay — or at least shown it was no different than any run-of-the-mill company.
“On June 4, about a month after Murdoch’s offer, the publisher voted to heap money on executives if they get fired in the event of a takeover. These change-of-control provisions are common though indefensible. They simply reward executives for doing their job.
“Dow Jones hasn’t needed such a device because until now the Bancroft family that controls 64 percent of the company’s vote has said the enterprise wasn’t for sale.”
Now, of course, News Corp. CEO Rupert Murdoch has made a $5 billion offer for the company, which the Bancrofts are considering.
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