Clear Channel Bob Pittman plane for $3 million CEO John Hogan $1 Million bonus

[Molly2011]

Now its clear why they had to let 1000's of good people go last week. Its brutal but congrats on balanceing the budget

 

[BRNout]

Yeah, talk about timing!! I recoiled when I read that story. : :

And now, I am not one of those OWS people. But I do believe in decency and things like this are the reason why there is such a movement as OWS. What idiot in Corporate PR let this deal happen and right now? Right on the heels of their RIFfing 100s (not quite 1000s) of people to save money - because money's supposedly tight - we learn about this exercise in opulence. It sends a horrible message to CC's [remaining] employees. A 'let them eat cake' sort of message.

Look, I understand that a CEO needs to have mobility and some special care in order to exercise his duties. No one should be insisting that he sit in a Corolla on a crowded freeway or that he fly coach on Spirit Air. Some of these "perks" are there to ensure that a CEO gets what he needs in order to do the company's work - and to attract the top candidates for the CEO slot.

All that having been said - a private jet? That's quite an expensive perk while also being questionable in this particular case. And it really rubs everyone's nose in it. Wouldn't you love to be the hard-working talent who had to come home and tell his kids how he got canned, only to read about this? Infuriating. Talk about sending the wrong message. What it tells me is that Bob Pittman and John Hogan are arrogant jerks. Because a CEO with any decency would at least make it appear as if he's suffering with everyone else (even if we know that's not really so).

A decent person could "sacrifice" by flying first class, couldn't he? At least for a little while until things cool down? After all, is Hogan really so apt to fly to out of the way places? Of course not. He'd just prefer not to be inconvenienced by dealing with the thugs at the TSA. And this 'deal' has sweetheart written all over it. A fractional lease with NetJets would cost a fraction of this. Again, it's a big "FU" to anyone who would question it.

So, I hope that Clear Channel hears nothing but complaints on this one. They deserve the torch-bearing crowds that I hope they get when they pull something like this.

 

[austingeezer]

Those that were recently laid off just in time for the holidays can take comfort in knowing while standing in the unemployment line that Bob Pittman and John Hogan were well taken care of

 

[mmnassour]

And the surprise to any of this is what? We know who we're talking about here.

 

[CTHank]

This shows a total lack of class, it's almost stupefying that they would spend 4 million in cash, while riffing that many people and paying 3 million of it to Pittman's own company. There is absolutely no way this can be justified, but then again in their minds they're above the fray and they don't have to justify anything to anyone..wow..

Since we know that CC folks read these boards, please one of them tell me how this is even a little bit right.

 

[Maize Brothers]

Didn't they also announce they were "closing" the CC HQ in San Antonio and moving it elsewhere? Will this mean more layoffs and have an affect on the ability to work for those remaining with the company? Will the company relocate them and pay the higher costs to live "somewhere" else?

What a ruse. Maybe each employee will get use of the jet to move their belongings to a place that costs a lot more to live.

 

[davideduardo]

What idiot in Corporate PR let this deal happen and right now?

Pittman is a pretty special person, one with the potential to save and move forward the rest of CC. His deal points included use of his own plane, which he generally pilots.

If they wanted Pittman, they had to accept or at least negotiate on his terms.

All that having been said - a private jet?

It's his plane. It was a "that's the way I work" position. Clear could have hired someone less proven, less creative, less talented. They could have sold the assets and liquidated...

But they chose Pittman, and accepted some of the things, if not all, that he asked for. And he turned around and invested several million in the company.

That's quite an expensive perk while also being questionable in this particular case.

Actually, the cost of private aviation has been studied and proven to be a very profitable use of capital. In my experience, which includes 3.8 million miles on my most used frequent flier card, commercial travel consumes about 80% of work time on a travel day, and is enormously exhausting. Private jet travel cuts the travel time by at least 50%, and allows unhassled work, often in a group, to be done during much of the travel time.

Unless you have traveled day in and day out, you don't realize how exhausting it is. And how it reduces productivity, dulls the mind, and fills each day with stress and hassles.

What it tells me is that Bob Pittman and John Hogan are arrogant jerks. Because a CEO with any decency would at least make it appear as if he's suffering with everyone else (even if we know that's not really so).

It's Pittman's own plane, which he is licensed to fly (he got into radio to pay for flying lessons, by the way) and it was a condition of his employment. You want him, you accept his terms.

With his resume, he could have worked just about anywhere in new or old media, but he picked the challenge of moving an old media company into the new media world. The employees at CC should be thankful that they got him at any price... he just might make the difference between having a future in radio and being out on the streets.

A decent person could "sacrifice" by flying first class, couldn't he?

This is not about a slightly bigger, but equally uncomfortable seat... despite what Obama said when the automakers went to talk bail-out... it is about reducing the stress, increasing the productivity of the most important person in a company.

[/quote] At least for a little while until things cool down? After all, is Hogan really so apt to fly to outof the way places?[/quote]

It's not Hogan's plane to use. It is Bob Pittman's plane... he has been flying since he was a teen. For tax, insurance and liability purposes and to capture depreciation, etc., even a private use private plane is usually in a corporation. In any case, it's Pittman's deal, which came at about 2/25th the cost of a top tier professional athlete.

 

[Molly2011]

David
Sounds like your a Pittman fan. I am sure his resume and position justifies the perk and his compenstaion. Strange that he put $5 Million in and has already taken $3 Million out. Not quite sure how the $1 million bonus to Hogan and the $250,000 bump for the attorney who probably crafted the exit of the 1,000 or so employees is justified, certainly not by their stellar top line performance, looks more like hush money. It's their radio stations to ruin and they can certainly do what they want to do..but it still stinks to treat all those hard working people like dirt so Clear Channel can ignor local content in favor of piped in DJs for NYC

 

[davideduardo]

David
Sounds like your a Pittman fan. I am sure his resume and position justifies the perk and his compenstaion. Strange that he put $5 Million in and has already taken $3 Million out. Not quite sure how the $1 million bonus to Hogan and the $250,000 bump for the attorney who probably crafted the exit of the 1,000 or so employees is justified, certainly not by their stellar top line performance, looks more like hush money. It's their radio stations to ruin and they can certainly do what they want to do..but it still stinks to treat all those hard working people like dirt so Clear Channel can ignor local content in favor of piped in DJs for NYC

I'm a fan of Bob Pittman's talent to develop new ideas. Whether it was a team effort or not, MTV was one of the most important events in entertainment history... it changed how music was enjoyed, and even how music was sold.

Radio needs people who don't think that a radio station is a jock in a studio under the glow of tower lights. AM and FM will definitely disappear, eventually, leaving the choice of going out of business or leaping into a new media model of content and distribution.

The reason why we did not have nation-wide jocks decades ago has more to do with technology than with listener desires and needs.

As to the plane... the payment is to cover operational costs, just as an auto lease payment covers the cost of making a car. Pittman put millions into an equity position with CC; he is essentially leasing them his plane for use while he is employed with CC and it will likely cost him nearly as much to operate the plane.

Unfortunately, like most businesses that have reached the end of their product life cycle, dramatic, drastic and often draconian change is often needed. It's hard to see our friends and associates on the bench (I saved them seats, though), but we have to admit that the current model will not work in the future.

 

[Molly2011]

I agree with you David that the current radio model needs fixing to be relavent in the future and that Bob Pittman was a man with a great vision for MTV. His stint at AOL was not as brillant as his MTV days and we can only hope that he can steer Clear Channel into better waters. As we know Bain has a limited time frame they want to hold on to CC and their plan is to sell it off. Like an old car it will be stripped and sold for parts. Top 25 stations to someone...stations 26-100 to a couple of groups...100+ to operators who love broadcast radio and I Heart Radio to Bob Pittman.

 

[Kent]

It's not Hogan's plane to use. It is Bob Pittman's plane... he has been flying since he was a teen. For tax, insurance and liability purposes and to capture depreciation, etc., even a private use private plane is usually in a corporation. In any case, it's Pittman's deal, which came at about 2/25th the cost of a top tier professional athlete.

I seem to remember Hogan has always flown commercial since taking his current position.