On salaries, don’t pass the buck

Even in the days when prosperous newspaper companies seemed to print money along with the news--an increasingly distant memory--some recent revelations about top editorial salaries would have arched more than a few green-shaded brows.

First there were reports that former Wall Street Journal managing editor Paul Steiger was pulling down a cool $570,000 at ProPublica last year, and now we see that the new editor in chief of the Texas Tribune is making $315,000. What's sure to stoke flames even more is that these two online publications are publicly funded entities.

It's a little surprising that such princely sums have not generated more ire, considering the public's disposition toward compensation these days as expressed in highly vocal opinions over salaries paid to CEOs of TARP-infused banks. Granted, the banks have gotten taxpayer money, as opposed to the private foundation funds that have kept many non-profit news sites afloat, but there have been some suggestions to use "bailouts" and other public money to finance news outlets as well.

We at Newsvetter don't begrudge anyone for making a decent (or decadent) living, but something tells us that others might not look so kindly upon these numbers. And in this age of fiscal scrutiny, especially involving the corner offices, we wager that many more top salaries will fall under a microscope if only a cent of public money touches their corporate coffers.

So what should these companies and organizations do? They have two options, in our opinion: Either take a very public and sizable pay cut or announce their salaries first, before an angry mob does it for them, skewering them with their pitchforks.

We'll go out on a limb and guess that volunteer pay cuts won't be forthcoming, so here's our advice:

• Meet with outside compensation consultants to determine if in fact you can make a reasonable case for your salaries.
• Consult with PR reps to draw up inflammatory-free language explaining that the salaries are competitive and justified.
• Explain that these salaries were approved by the board of directors, as is typically the case for senior management.
• Get your execs on TV interviews and/or YouTube to show that they're not barricaded behind their antique commodes.
• Provide data, if available, that illustrates the going rate for executives who hold similar positions in the industry.
• Blog about it and invite comments. It won't be fun, but at least you'll know what's being said and have a chance to respond.

The most important point is to take the initiative, rather than be forced to react to news reports that are almost certain to be negative. If you work at a publicly traded company, the salaries of top officers are listed through the Securities and Exchange Commission anyway.

As we have said many times in other instances, it's always best to get out in front of a story and set the tone for the conversation, or at least try to--especially if it's not a pleasant one.