Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
SEC Directs Knight-Ridder to Include TNG-CWA Proposal in Shareholder Proxy
Knight-Ridder must include in its proxy to shareholders a proposal by The Newspaper Guild-Communications Workers of America that links executive compensation to the chain's adherence to principles of community accountability and responsibility and other tenets of good journalism.
The Securities and Exchange Commission rejected Knight-Ridder's bid to block the proposal from consideration by shareholders at the company's annual meeting set for April 28 in Miami. Knight-Ridder argued that the proposal, also known as the "Monterey Principles," was an attempt to bring ordinary business practices before the shareholders and added that the company did follow some of the principles.
But the SEC refused to issue a "no action" letter to Knight Ridder, meaning the "Monterey Principles" will be included in the proxy statement soon to be mailed to Knight-Ridder shareholders. The Principles are:
The company must be accountable to the communities in which it publishes.
The company must be fair, responsible and law-abiding in its dealings with local advertisers, vendors, employees and communities.
The company must dedicate adequate resources to news coverage to ensure that the public has a quality product.
The company must uphold freedom of speech and the press, and avoid corporate censorship of news.
The company's newspaper content must reflect the diversity of the communities that it serves.
In a letter to shareholders, TNG-CWA President Linda K. Foley outlined the proposal, which would require the board to include in its formula for determining executive compensation some measurable demonstration that executives are meeting these five principles. Foley urged shareholders to vote for the Monterey Principles at the April 28 meeting.
"These principles are the minimum standards of corporate accountability for news publishing and reporting businesses. We are sure you will agree that the company must not only act responsibly in the communities in which it conducts business, but it should also invest in those communities by being fair in its business dealings with local merchants and with its employees," she wrote.
TNG-CWA believes that the adoption of these principles will encourage Knight-Ridder to act responsibly, especially as most communities now are served by just one newspaper. Further, the industry has not solved its long-term dilemma of shrinking newspaper readership, increasing competition from local television news and potential competition from new electronic media sources, the union pointed out. But this downward trend in readership can be reversed by producing quality products and acting as responsible corporate citizens, TNG-CWA said.
The Securities and Exchange Commission rejected Knight-Ridder's bid to block the proposal from consideration by shareholders at the company's annual meeting set for April 28 in Miami. Knight-Ridder argued that the proposal, also known as the "Monterey Principles," was an attempt to bring ordinary business practices before the shareholders and added that the company did follow some of the principles.
But the SEC refused to issue a "no action" letter to Knight Ridder, meaning the "Monterey Principles" will be included in the proxy statement soon to be mailed to Knight-Ridder shareholders. The Principles are:
In a letter to shareholders, TNG-CWA President Linda K. Foley outlined the proposal, which would require the board to include in its formula for determining executive compensation some measurable demonstration that executives are meeting these five principles. Foley urged shareholders to vote for the Monterey Principles at the April 28 meeting.
"These principles are the minimum standards of corporate accountability for news publishing and reporting businesses. We are sure you will agree that the company must not only act responsibly in the communities in which it conducts business, but it should also invest in those communities by being fair in its business dealings with local merchants and with its employees," she wrote.
TNG-CWA believes that the adoption of these principles will encourage Knight-Ridder to act responsibly, especially as most communities now are served by just one newspaper. Further, the industry has not solved its long-term dilemma of shrinking newspaper readership, increasing competition from local television news and potential competition from new electronic media sources, the union pointed out. But this downward trend in readership can be reversed by producing quality products and acting as responsible corporate citizens, TNG-CWA said.