Projo’s Top Boss Made $1.7M While Staff, Circulation, Stock & Same Store Revenue Declined
GoLocalProv News Team
Projo’s Top Boss Made $1.7M While Staff, Circulation, Stock & Same Store Revenue Declined
Kirk Davis, who oversees hundreds of newspapers across the country including the Providence Journal, Worcester Telegram, Newport Daily News, and the Fall River Herald to name a few, received his standard base salary of $550,000, but was also awarded a massive cash bonus and even larger stock bonus.
“After considering a variety of factors, including but not limited to Mr. Davis’ level of responsibility, the Company’s financial and operational performance, and other cultural factors specific to the Company’s philosophy and mission, in February 2019 the Compensation Committee approved and recommended to the Board, which subsequently approved, a cash bonus of $400,000 to Mr. Davis for 2018 performance,” according to the companies filings with the Securities and Exchange Commission.
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In addition, Davis was awarded $750,000 in stock from the company.
“The Compensation Committee approved a grant of 45,900 shares of restricted stock to Mr. Davis on February 27, 2018. The restricted stock vested 33.3% on February 27, 2019, and will vest 33.3% on February 27, 2020 and 33.4% on February 27, 2021, subject to Mr. Davis’ continued employment through each vesting date,” stated the company’s filing.
“The Compensation Committee determined to grant Mr. Davis this award primarily due to his significant role with the Company and his contribution to the Company’s financial performance in 2017 relative to industry peers. The Compensation Committee approved a grant of 62,271 shares of restricted stock to Mr. Davis on February 19, 2019, which will vest 33.3% on February 19, 2020, 33.3% on February 19, 2021 and 33.4% on February 19, 2022, subject to Mr. Davis’ continued employment through each vesting date,” added the filing, “The Compensation Committee determined to grant Mr. Davis this award primarily due to his significant role with the Company and his contribution to the Company’s financial performance in 2018.”
In the past, three years Davis has received nearly $4.9 million.
Staffs Slashed, Revenue Down
Staffs were cut at many GateHouse newspapers across the country, and print circulation declined dramatically for the newspapers during the year — today the Providence Journal’s print weekday circulations is now approximately 40,000.
The company under Davis’ leadership purchased and consolidated a number of newspaper companies, but same store, year-over-year revenue for the newspapers fell by double digits— a reported 13.7 percent.
For investors, the stock was nearly $17 a share entering 2018, but by the end of the year the stock had fallen to $11.57 — a 30 percent drop in stock value.
The stock New Media Investment Group — the public company that controls GateHouse — has continued to see its stock slide in 2019. As of Wednesday at 12 noon, the stock was trading just $10.88 — a decline of 37 percent in the past 12 months.
This story originally was published 4/17/19 1:30 PM