OLD Media Moves

Big payout for Dow Jones executives if company is sold

May 3, 2007

Posted by Chris Roush

Eric Dash of the New York Times writes Thursday that executives and employees of Dow Jones & Co. stand to make a lot of money if the owner of The Wall Street Journal, Barron’s and Marketwatch is sold now that an offer has been made.

Richard ZanninoDash wrote, “For Richard F. Zannino, who became the chief executive of Dow Jones in February 2006, that could mean an exit package of more than $18.9 million at a $60 a share price.

“Other executives might walk away with payouts worth several million dollars or more. L. Gordon Crovitz, The Wall Street Journal’s publisher, could be eligible for more than $7.2 million in severance, retirement benefits, stock and option payouts, based on the $60-a-share offer.

Paul E. Steiger, who will be The Wall Street Journal’s managing editor until the middle of this month, could be entitled to more than $5 million in various benefits. Mr. Steiger may not be eligible for change-in-control benefits if he leaves before a deal is reached down the road; he is required to retire from Dow Jones by the end of the year.

“Based on Dow Jones’s ordinary severance policy, Mr. Zannino would be eligible for severance worth at least $4.6 million, including health care benefits for up to two years as well as outplacement and financial counseling. He also is entitled to retirement benefits worth $2.23 million, with a portion of that representing deferred pay. And assuming that his stock and options vest immediately, Mr. Zannino could walk away with $12.9 million more.”

Read more here.

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