Trinity Mirror, publisher of the popular British tabloids Daily Mirror, Sunday Mirror and The People, will chop nearly a fifth of its editorial staff, after its CEO earned over a million pounds in 2011, according to reports.
The newspaper announced in a statement Wednesday its plan to cut 75 jobs from its editorial staff, and critics and board members immediately called into question CEO Sly Bailey's estimated haul of £1 million ($1.6 million) in 2011.
Politicians should take note: Bailey is effectively being rewarded for failure if you take account of the bombed-out share price, a pension fund manager told The Guardian Thursday. This is precisely what ministers have been saying shouldn't happen in their exhortations to managers to be sensible when it comes to how much they pay themselves.
Bailey's pay reached £1.7 million in 2010 and shareholders were less than impressed since in the nine years Bailey held the company's top spot, share price plunged 87 percent, circulation declined and advertising revenue moved elsewhere.
Investors expect the February meeting will include a grilling session with chairman-designate David Grigson, a former Reuters finance director, according to reports.
Trinity declined to comment to The Guardian about shareholder angst, but said that meetings among the new chairman, current chairman Sir Ian Gibson and leading investors would begin shortly.
The total editorial staff will be reduced to 325 members in a company that has its national and 160 regional titles.
The company said that the weak British economy hurt advertising revenue, but the shuttering of the rival News of the World helped raise its Sunday circulation.
The News of the World closed due to a phone-tapping scandal and was owned by Rupert Murdoch as part of News Corp.
Trinity Mirror shares closed up 1 percent at 46.75 pence per share, which valued the company at £119 million pounds ($188.7 million).