Shocking payout to former New York Times Company CEO

Why would any company pay off a departing CEO who saw the stock price decline 80% with an 8 figure package equal to more than the last 4 years of earnings, or 2.4% of the company's formerly billion-dollar market value? The foundering New York Times Company has done just that, rewarding failed CEO Janet Robinson, 61, with a departure package worth a whopping 23.7 million dollars. The company released its proxy materials yesterday, ensuring they would be reported on Saturday, the corporate world's equivalent of a Friday afternoon document dump. During Robinson's 8 years at the company, it has collapsed from a highly profitable media company down to a money-losing property which has sold off its valuable assets, including a chain of television stations, to stay afloat. (For some of the sad history of management bungling, see this, this, and this.) Part of the deal is $4.5 million dollars in consulting fees for this year, or four and half times her salary for 2011. What does Ms. Robinson...(Read Full Post)