Entercom Institutes A Wage Freeze
January 27, 2009 at 5:23 AM (PT)
ENTERCOM has taken another step to counter the current financial crisis, this time reportedly freezing wages corporate-wide. In a form 8-K filed with the Securities And Exchange Commission, ENTERCOM wrote:
"For 2009, ENTERCOM COMMUNICATIONS CORP. (the "Company") is instituting a corporate-wide wage freeze. In order to effect the wage freeze for its executive officers, on JANUARY 20th, 2009, DAVID J. FIELD (Pres./CEO), STEPHEN F. FISHER (EVP/Operations & CFO) and JOHN C. DONLEVIE (EVP & General Counsel) each entered into an agreement to waive the 2009 salary increase in their respective employment agreements. All other terms of the respective employment agreements remain unchanged."
How the freeze will be instituted company-wide is unknown at this time.
ENTERCOM has, along with most media companies, been battling the financial crisis and loss of advertising revenues. Their Q3 financial report (NET NEWS 11/6/2008) pretty much mirrored the hard times suffered by other radio groups. The company's third-quarter net revenues fell 6% to $115.6 million, from $122.9 million a year earlier. Station operating income (SOI) dropped even more -- down 15% to $44.2 million, while free cash flow decreased 2% to $280 million.
ENTERCOM was also threatened in DECEMBER (NET NEWS 12/3/2008) with being delisted from the NYSE. The company had six months to bring its share price and average share price over $1.