Categories: OLD Media Moves

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.

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.