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The members of the Office of the Publisher would like to clarify our position regarding the bonuses awarded to the President and Business Operations Officer, as addressed by editorial staff members in the Daily’s Tuesday edition. The following is a statement drafted by the Board of Directors:
“The OP bonuses are part of the established compensation package for the president, editor-in-chief and business manager – an agreed-upon contract for paying and evaluating those employees through the year.
As such, the OP bonuses are not perks. When the bonuses were first introduced, in fact, OP pay rates were actually reduced throughout the year. The bonuses were intended so the board could "reinstate" those pay cuts if performance merited them.
The bonuses are not guaranteed but are considered three times a year through formal performance evaluations. In most cases during the past few years, bonuses have been granted in full. But there have been times when they were denied or reduced based on performance issues.
For the board to simply deny bonuses without considering performance issues could be construed as a breach of contract. The awarding of OP bonuses is an established practice that cannot be discarded arbitrarily but instead requires debate and discussion to amend.
The OP members voluntarily agreed to forgo their bonuses for fall semester, essentially imposing a pay cut on themselves as part of their larger response to the economic conditions at that time.
Mindful of that action, the board voted unanimously last week to support spring semester bonuses for all three OP positions. No one present for that board discussion voiced concern about awarding those spring bonuses. The board is composed of Daily staff members as well as outside professionals, and both were included in the discussion.
In the board’s view, all three OP did an excellent job this year of finding creative, innovative, and groundbreaking ways to manage the Daily during a time when newspapers nationally have been suffering and closing down.
The Daily ended the spring semester with a net income of more than $47,000 above budget. The OP achieved that only partly through cuts, which involved not just staff compensation reductions but strategies that included merged sections, paper size reductions as well as renegotiated contracts with the Daily’s auditor, printer and distributor. The OP also created new revenue streams through online, targeted marketing efforts, new advertising programs and fought hard to secure adequate funding from the university.
Through the spring semester, readership of the Daily increased 18 percent because of an aggressive strategy to analyze and refigure distribution as well as efforts to strengthen the paper’s content and add significant innovations to the Daily’s redesigned online news product, including a new Facebook application and the use of Twitter.
These actions impressed the board mightily. To deny them bonuses given these circumstances would have been unjustifiable.”
The decision to suspend the author of the original e-mail calling for a petition was not intended to stifle the petition but arose as a result of improper employee behavior. The e-mail that was sent was against company policy and was perceived to be an act of insubordination. We are supportive of the petition in principle, but believed that the matter should have been addressed in a manner consistent with established Daily practices.
We also feel it is necessary to let our readers know that “An open letter to our readers” did not reflect the views of our entire staff nor were many staff aware that there would be a letter published.
Although one of our OP members is on leave this week and was unable to participate in this statement, he has shared our passion and commitment to this organization all year.
Our goal as Co-Publishers of The Minnesota Daily has always been to be good stewards of the organization. The Daily is in a strong position in the midst of a very challenging time as a result of the actions that were taken this past year. We have worked hard to reduce expenses as well as implement new programs to capture revenue dollars we would not have had otherwise. We feel very proud and accomplished with the way we will be leaving the Daily. Our sincere hope is that our successors continue the same kind of dedication to the Daily’s mission and success.
-John Scholz, Co-Publisher and Business Operations Officer
-Robin Perez, Co-Publisher and President
Serving the University of Minnesota Community since 1900
62 Comments
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Given the tough economic
Given the tough economic times, and the tough times for newspapers in general, I still think it would be a good gesture to refuse the bonuses. Just sayin'.
Business Ethics anyone?
I think it would be very wise for the two OPs that are getting these bonuses to deny them, at least in part, and have them disbursed to the staff that had wages cut. This is completely unethical, I can't believe two outgoing seniors would have such blatant disrespect for this University and its students.
that is the most socialistic
that is the most socialistic trash I have ever heard.
Since when is fighting corruption equal socialism?
Seriously? Socialistic trash? These OPs made management decisions to cut the wages of Daily workers and stop printing the paper on Fridays, of course they are going to have money left over at the end of the semester. Why should their corrupt decisions to intentionally harm the workers of the Daily and the student community end with them directly benefiting from that corruption?
my guess is they cut the
my guess is they cut the wages before they knew that other cost-saving measures and revenue-generating plans were going to work as well as they did. the fact you think cutting wages is inherently corrupt makes you sound foolish and naïve. the fact they ended with such a high surplus says to me they outdid themselves and should be rewarded as such.
Classic riding the backs of workers
"my guess is they cut the wages before they knew that other cost-saving measures and revenue-generating plans were going to work as well as they did."
But they did not reinstate staff pay, they paid themselves bonuses. Without staff there is not content. Every worker is valuable and deserves to be rewarded when any enterprise is successful. Rewarding yourself a bonus for cutting another's wages is larcenous.
The word "Bonuses" in this
The word "Bonuses" in this case is misleading. It looks to me like this was part of their pay, and they had it coming all this time. They took a cut same as everyone else, in the fall.
Exactly. They have been
Exactly. They have been extremely diplomatic about this, not trying to 'sneak' themselves a higher salary, as it was poorly portrayed in the open letter. They deserve what the board proposed. This bonus is built into their pay and has been as long as there have been OP- They took a much bigger hit than anyone by refusing the previous bonuses.
Corruption?
Since when is it corrupt to accept fulfillment of your contract?
These are not the $20 Christmas bonuses your mom & pop-shop employer stuffed into your paycheck envelope when you had your first highschool job (...if you had one). These bonuses are a performance-based part of the total compensation offered to the OPs. The board reviewed their work, decided they met the preordained criteria, and awarded the bonuses they earned. There is absolutely nothing corrupt about it.
Had the board unilaterally decided not to evaluate the OPs for bonuses, THAT would have been corrupt. Breach of contract is corruption. Fulfillment of contract is just.
Contracts should be held to the highest honor. It's a shame that you, and so many others at this institution, do not understand this.
So, just read the Student
So, just read the Student Fees explanation for the money they dealt out to you and it actually sounds like the bonuses and your salaries are the reason you didn't get an increase in funding this year. Also sounds like they were relatively unimpressed with your reasoning for requesting an extra $50,000 this year. Don't know exactly what you're talking about when it comes fighting "hard to secure adequate funding from the university"
Also, if you guys made all these cuts to pay, paper, budgets or whatever it was that you did and you were able to come out in the black, why in God's name are you going to start dishing out thousands of dollars in bonuses because I guarantee that next year is going to be no easier of a year for newspapers. Just some thoughts.
Good grief
Completely agree.
Would love to hear if the Daily would be in the black without making the cuts. Stop sugar coating the issue with these marketing initiatives. We're not drinking the kool-aid!
If cuts as drastic as this are made = NO bonuses should be had by ANYONE. A very selfish move by these two. At least they're being replaced via graduation next year.
This is an extremely
This is an extremely uninformed, get your facts straight before you state them as such.
WHAT
$3,000 bonuses and I've heard salaries are around 30k for these people?! Holy cow. Regardless of the situation that's way too much to be paying people to produce this rag. 30k?!?!? You know how many people with a college degree don't even make that at a real job?
Real jobs do come in the form
Real jobs do come in the form of working at college level newspapers. The positions of the three co-publishers are typically held by full time professionals with degrees at about 98% of college newspapers across the country. These professionals make anywhere between $50-60,000 a year to work in these positions. It is a much cheaper alternative to keep students in these positions at roughly half the cost and dangle a bonus in front of them to draw productivity. My guess is these students are spending 30 or 40 plus hours a week and still working to finish their degree. I commend them for their efforts this year. They deserve every extra dollar they got.
GET OVER IT!
As a professional who works in publishing for a major news group, I can honestly say that you all need to grow up and get over this. Just STOP. The people who EARNED these bonuses deserve every penny. If you all don't think people should be compensated for hard work, than maybe you ought to move to a communist country. The people who are getting bonuses were NOMINATED for them through a board's decision, not through any corruption of their own.
Just because you guys don't know what it is to work hard for 4 years to get to the point where you can earn $30,000+bonuses while you're also getting your degree does not mean that these 2 hard-working individuals shouldn't be compensated. Whining and crying and making others feel bad for simply being good at their jobs doesn't make you guys seem cool. Guess what? It just makes you look like a bunch of spoiled University kids who don't understand the world. I hope for the society's sake that when you get out of your little college bubble you grow up and realize that you're wrong, selfish and rude.
I graduated from the
I graduated from the University 4 years ago. I make a nice salary and got a bonus for 2008. These people at the Daily have not done a good job producing a paper, if the online content is measure. I follow the paper because it is the only way I can tell whether or not to increase my annual donation to the U. After following this story I can tell you I won't. It is brutal to cut wages across the board and then hand out this money. It was for performance... if you had to cut wages you aren't performing. Also, do you think for some reason that the writers and reporters don't have to work hard? I'd love to come to your job and talk to your coworkers. I bet you moan louder than anyone about management.
I understand that the U does not have direct control over this paper but the U does funnel money to the paper and should be able to advocate for change. Until this happens, not a penny.
Good for you for getting a
Good for you for getting a bonus, but I'm really not sure how it's relevant here. The two people who are up for bonuses are on the business and management ends...the editorial OP is not currently eligible, so this should clear things up for you!
I used to work at the Daily
I used to work at the Daily and I can tell you that nearly every editor and many reporters go over their paid hours because of their dedication to their roles. Because of cuts, they only get paid by the inch. Tell me how it's fair for 3 OPs to make $30k a year while the rest of the staff gets either a cut in their junior janitor-level pay or downsized. How is that fair, especially at a college paper?
If we reward those for better productivity in a harsh economy, is it fair to cut the pay and up the worload for those who still keep highly productive? It's a law of laissez-faire that doesn't work in this never-ending economic crunch, especially not at a student organization.
When 3 OPs make a salary equal to a real job while the rest of the staff takes cuts and works harder, it will only stifle the culture of the workplace. In the Daily's case, it obviously already has.
Sure, you can argue that the real world doesn't work like this and that when any higher-level staffer takes a cut it automatically equals communism. But to me it seems like the majority of the staff is unhappy with the bonuses going out. It seems to me like the rest of the staff also continues to work hard. Maybe they don't know "what it is to work hard for 4 years to get to the point to earn $30,000+bonuses," but I'll bet they know what it is to work hard for 4 years and keep a job at the campus paper that takes 30 to 40 hours out of their time in a given week. And I'll bet they know what it is to lose their pay and in some cases their jobs in return.
The OP do NOT MAKE 30K - can
The OP do NOT MAKE 30K - can we get this straight? If they would not have taken a pay cut and got all 3 bonuses IN FULL they make close to that. They have forgone bonuses and make little more than a couple senior managers at the Daily despite having 10 times the responsibility. Stop speaking things as fact when you have no idea what you're saying!
maybe those sad sacks should
maybe those sad sacks should have worked a little harder.
Really?
What exactly do you do at the daily to get a bonus anyway? The only person who should get a bonus is Dr. Date, the only reason students read the daily. The crossword is good too.
Apparently you think of
Apparently you think of ingenious new ideas for the paper....like using a facebook application...and twitter....brilliant....definitely ideas that should be awarded with a $3,000 bonus while the other writers and staff members are getting drastic pay cuts - didn't the other article say in some cases up to 50%?...
Disclose salaries?
If the Daily is truly interested in transparency, why don't they publish the salaries of their high-paid student executives? They get a half a million dollars of student fees and free rent from the U, paid for by our tuition dollars, don't they?
Oh, the audacity!
"For the board to simply deny bonuses without considering performance issues could be construed as a breach of contract."
Oh yes, this "established compensation package" couldn't POSSIBLY be renegotiated during troubling times! It would be RIDICULOUS to even consider amending institutional conventions to fit with the corresponding financial climate of the paper! How could anybody be so naive to think that an age old practice such as giving the OPs bonuses could be changed in order to secure a brighter financial outlook for the business?!
It boils down to this: members of Office of the Publisher can choose the Daily, or they can choose the $3000 bonuses. What's more important? Respect, integrity, transparency and honor - or $3000. As a current (unemployed) journalist, its no secret the journalistic community stakes a large amount of hubris on the virtue of integrity. That's why it's not hard to tell that these two members of the OP are not journalists.
P.S. Vadim Lavrusik, the Daily's Editor-in-Chief, is not on a leave of absence. He is suspended for providing Minnesota Daily news coverage of the Dinkytown Riot to the Minneapolis Star Tribune.
"P.S. Vadim Lavrusik, the
"P.S. Vadim Lavrusik, the Daily's Editor-in-Chief, is not on a leave of absence. He is suspended for providing Minnesota Daily news coverage of the Dinkytown Riot to the Minneapolis Star Tribune."
Thank you for bringing that to light.
The hole just keeps getting deeper!
I wonder if he got a pretty penny from the Strib for that...
seriously. these idiots are full of it.
yeah--they're in the black this semester because they cut the wages of EVERYONE ELSE AT THE PAPER. some by as much as half. what a wonderful job they have done turning a profit. the OP deserve nothing--they already get a hefty salary, all while the journalists (the reason the paper exists ...) receive rusty pennies.
when it comes right down to it, john scholz is nothing but a soulless business person who thinks that the success of the paper is merely a business matter; he could care less about journalism; how dare he call himself a "good steward" of the organization. the organization does not exist solely as a business.
and the bit about Vadim being "on leave" is complete bunk. THAT LINE RIGHT THERE SHOULD SAY A BIT ABOUT THE AUTHORS' COMMITMENT TO HONESTY AND TRANSPARENCY. now why should we believe anything else they say? especially when it's their wallets they're talking about ...
I won't bother myself to take
I won't bother myself to take ample part in this idiotic discussion, but the OP deserve it, and I'm glad you are fighting the good fight for what you deserve. Whatever the outcome, thanks for being mature, and not snarky infants like some of the editorial staff who are really the only people commenting negatively to you. "gorruption, greed, unfair"? grow up kids.
Best of luck.
corruption*
corruption*
I'm certainly not a member of
I'm certainly not a member of the Editorial staff, but you are probably either John Scholz or Robin Perez.
No, I am certainly not. Just
No, I am certainly not. Just someone who thinks that the editorial staff at this paper handled the situation very poorly, and who thinks the bonuses are deserved.
You are an idiot, whoever you
You are an idiot, whoever you are. Seriously, please don't say you are not going to participate in the discussion and then say something inflammatory. It makes you look like the moronic tool that you are.
yikes! calm it down there
yikes! calm it down there honey. It will all be OK. You'll get a job someday.
Wow
This a real nail-biter. Let me pop some popcorn before you print more on this!
$5500 out of a $2.5 million
$5500 out of a $2.5 million budget?
really?
why dont we discusss some other program that shouldnt be there?
"Our goal as Co-Publishers of
"Our goal as Co-Publishers of The Minnesota Daily has always been to be good stewards of the organization. The Daily is in a strong position in the midst of a very challenging time as a result of the actions that were taken this past year. We have worked hard to reduce expenses as well as implement new programs to capture revenue dollars we would not have had otherwise. We feel very proud and accomplished with the way we will be leaving the Daily. Our sincere hope is that our successors continue the same kind of dedication to the Daily’s mission and success."
Not that it matters, but isn't there more to producing quality journalism than reducing expenses and capturing revenue dollars? I realize that may be in the job description, but doesn't "the paper" matter?
By the way it doesn't take a genius to impose pay cuts and reduce the size of the paper. Nor does it really require much thought to use a facebook application or twitter. Ingenious use of a social networking tool to increase readership? No, just obvious. It is ridiculous that the website features twitter prominently. Amusing maybe, but it is not news. It just looks dumb.
OPs: This is what you are proud of: money from pay cuts and twitter. If you care about the paper you should care about your co-workers. You may be young, but you will see that how these people view you will follow you into your future. I am sure you worked hard, but I am guessing that they worked hard too, and for less pay. If you think so highly of yourself that you suppose your decision about the bonuses won't matter, you should consider this: In ten years, what will matter more to you: $3000 or leaving your college job with the respect of your co-workers and the peace of mind that you did the right thing? People matter and they don't go away. Especially if you stay in the same field of work. $3000 is spent and gone.
Don't be so arrogant. Also, it is okay to say you were wrong.
"producing quality
"producing quality journalism"
HA!
This sounds oddly reminiscent
This sounds oddly reminiscent of AIG....
Wages?
Wages were cut across the board, including those of the OP positions. I hope the editorial staff realizes that while everyone has made a sacrifice this year, they are the only one's bringing a bad reputation to the paper and university by writing cover stories on the internal riffs that the Daily staff may be having. HR and Public Relations are not doing there job apparently. You are tools and probably have a degree from CLA. If that is the case, you will probably not be making anything near the OP salaries for several years while you work as a teacher or some bullshit like that. This is capitalism, not socialism... you can always move to China if you have a problem with that.
woops, dumba**
you used the wrong "their," you idiot non-CLAer. hope you enjoy all of the money i'm sure you'll be making ...
Thoughts
I have hemmed and hawed about responding to these two letters. I have two thoughts on this whole argument:
1) This internal rift has no place as a news story. It's really disappointing and poor news judgment--you're supposed to be un-biased and this stinks of biased journalism. I echo the other commenter who said something to the effect of "please put this in your portfolio as a clip." I would really like to be a fly on the wall when potential future employers read that clip.
2) This internal argument could have horrendous future ramifications for the paper. I think those who printed it are missing some key insights that come from, well, being an OP/working professional. Yes, this most likely will come up in fees next year. And it probably won't be a happy discussion. The Daily could drastically change as a direct result of this issue. That would be the greatest misfortune of all.
This newsroom vs. business argument seems as old as newspapers themselves. Bottom line? No one knows what it's like to be an OP until they are an OP. Also, the Board of Directors is composed of veterans of the newspaper industry and a host of other working professionals. If something were truly amiss, they would not have approved these bonuses.
wrong
this was not a news story; it was a letter to readers. but nice try.
a letter no one gives a shit
a letter no one gives a shit about except the people that work at the daily. It was an indulgent little excuse for journalism.
Yet here you are commenting
Yet here you are commenting about it.
yeah, beacuse I used to work
yeah, beacuse I used to work at the Daily and have an investment in it not falling to pieces beacuse of emo, replaceable reporters.
Enjoy your bonuses ...you earned it!
It seems to me that the only ones complaining are the ones that haven't done a thing or haven't held real jobs where salaries and a bonus are compensation. We all have bills to pay. Why would anyone even think of not accepting their salary. I don't hear any of you complainers offering to give up your salary. Bonuses are part of one's salary. Sometimes you get them others times you don't. We cannot deny individuals their salaries just because of what AIG and others have done. These individuals worked. there was no hand out. This was not a volunteer job. There was a board meeting where it was approved. Stop the madness! Let us see if the next leadership is so willing to give up their salary. Maybe the positions should be volunteered. Robin and John, you've done nothing wrong. Take your bonus (the meager amount that you earned) don't even think of not accepting it or returning it.
Hear Hear!
Well said!
WRONG. I have a real job. I
WRONG. I have a real job. I received a nice bonus (15%) and stock. I still think this situation stinks. These people haven't performed. This paper's jouranalistic quality blows. End of story. They deserve nothing because they have produced crap.
Wow!
You brag about your 15% bonus and stock and sit in judgement over a tiny bonus that these students got. They worked hard just like you did. They earned their's just like you did. The board didn't think they produced crap. How could they if they were over budget and readership up. It's a sad world with people like you. I'm working in health care where cuts, hiring freeze, and yet those that deserve promotion is still taking place. People derserve to be recognized! Kids take your bonus and don't care what any of these sour jealous people have to say...especially those earning 15% bonuses and stock and knocking you for your little reward.
Sheesh what a collection of
Sheesh what a collection of uninformed, knee-jerk reactions by obviously either inexperienced editorial Daily employees, or unintelligent students who are judging the situation based on 3000-level class case studies. Come on.
Two key facts:
1. Roughly 75% of this letter was drafted by the Board of Directors. Publicly calling out two OP members for not being "honorable" is about as elementary of an argument as you can find. As many posters who are more aware of the inner workings (and also, not coincidentally I presume, are willing to actually post their name and credentials) of the Daily have said, take this issue up with the MN Daily board of Directors, thats if you truly care about the organization and are not just attempting to spread a radical, negative attitude around an organization.
2. Few people are agrueing that, perhaps, the bonuses were tad excessive during the "tough time." But two facts remain: the editoral staff supporting this form of conflict management are causing far more turmoil to the organization than the bonuses themselves, and 2, the Board votes, and clearly are aware of the current financial situation of the Daily itself. Considering the Daily actually turned a profit for their reserves, they deserve a little something extra for a job well done.
Robin and John you have my support.