A few days ago, Wick mused on Robert Decherd’s negative cash flow strategy. The upshot: “Belo projects $37 to $41 million in adjusted EBITDA this year. Taking the higher number and deducting their planned extra expenditures …Â it looks to me like they will leak cash to the tune of $11 million or more.” Wick rather cheekily surmised that Decherd is trying to make his company look unattractive so that no one will make a run at its shares.
Now comes news that AH Belo will leak even more cash, as it is upping the pay of its top brass. Next month, Decherd’s annual base salary will jump 25 percent to $600,000. Morning News publisher Jim Moroney’s base salary will increase 15.5 percent to $540,000. Chief financial officer Alison Engel’s will increase 8.3 percent to $325,000. And senior vice president Daniel Blizzard’s will increase 12 percent to $280,000.
Seems to me a hard sell in the newsroom.
