Gannett Answers Succession Question

NewsInc, July 28, 2003

Investors breathed a sigh of relief last week when the board of directors of Gannett Co. Inc. announced that it had extended the contract of its chief executive, Douglas McCorkindale, through July 2006. McCorkindale was scheduled to step down next year.

Wall Street had become preoccupied by the McLean, Va. company's apparent lack of succession planning in recent weeks, given that USA Today Publisher Tom Curley -- seen by some as a potential CEO -- had left the company to run the Associated Press last month.

The Wall Street Journal said that analysts believe that part of the Gannett's problem is that since it is so decentralized, many outside the company don't understand the strong roles regional executives play in the business.

At the same board meeting, Louis Boccardi was named to the board of directors. Boccardi, the former president of the Associated Press who stepped down last month, will initially serve a two-year term.

Doubt there was a baseball-like trade between GCI and the AP, but it does look interesting that Curley moved to the wire service and Boccardi moved to the multimedia giant.