MCLEAN, Va. -- Former Gannett Co. (GCI) CEO Craig Dubow's received a severance package valued at about $32 million after chronic health problems prompted his resignation from the largest U.S. newspaper publisher.
The owner of USA Today and more than 80 other U.S. newspapers disclosed the details of Dubow's compensation in a regulatory filing late Friday. A contract that Dubow signed in February 2007 guaranteed he would receive his full pension, stock awards, a severance payment and other benefits if he became disabled.
Dubow resigned last October after six years as CEO and 30 years with the company. He stepped down after taking two medical leaves during 2010 and 2011 to deal with hip and back ailments.
Dubow's final compensation package includes $12.8 million in retirement benefits, $6.2 million in disability benefits and a $5.9 million severance payment, according to the filing. Gannett stock options and restricted stock, which Dubow had accrued during his years of employment with the company, were also part of the package. Those stock awards are valued at nearly $7 million.> > Bull or Bear? Vote in Our Poll Separately, Gannett will pay $25,000 to $50,000 annually for a $6.2 million life insurance policy covering Dubow and another $70,000 annually for benefits such as health insurance, home computer and secretarial assistance and financial counseling. He will receive most of these benefits for three years unless he goes to work for a competitor, according to the filing. Dubow's tenure as Gannett's CEO coincided with deep cutbacks in staff, triggered by a sharp decline in print advertising, the main source of revenue in the company's publishing division. Gannett's revenue from print advertising plunged from $5.2 billion in 2005 to $2.5 billion last year. Gannett's stock price plummeted by 86% while Dubow was CEO, dropping from $72.69 to $10.45. The shares have rallied under Dubow's successor, Gracia Martore, amid hope by investors that a recently introduced program to charge readers for online access to most of Gannett's newspapers will boost profits. Gannett's stock ended the week at $15.21, a 46% gain since Dubow's resignation. The Standard & Poor's 500 index is up nearly 21% during the same stretch.