Tribune Sale Coverage - Unfair Representation of ESOPs
April 4, 2007
The following article from the Washington Post did not represent ESOPs in a favorable manner: Private Equity's Bottom Line for Workers
In response to the article, the ESOP Association sent the following advice to employee owners:
As many of you have seen, the recent articles in the media regarding the sale of the Tribune Company to an ESOP have left the general public with a rather negative impression of the ESOP community.
In the old days, we would put out a press release, or write a letter to the editor, but not anymore. Journalism has become democratized. Emails are sent directly to reporters and discussions are carried out on blogs.
The Washington Post Business Columnist, Steven Pearlstein, (Link to Mr. Pearlstein’s article in today’s Washington Post, “Private Equity’s Bottom Line for Workers” - http://www.washingtonpost.com/wp-dyn/content/article/2007/04/03/AR2007040301863.html) was overall negative in tone in his references to the ESOP. His email is posted at the end of the article. Send him an email and let him know your feelings about employee ownership and how the ESOP works at your company. Maybe he’ll change his tune after hearing the stories of a few employee owners who know first hand the type of success an ESOP can bring to a company.
Many articles that we’ve seen will include blogs and comments on their sites, for example The New York Times, “Is Tribune’s Leverage ESOP Worth the Risk?” - http://dealbook.blogs.nytimes.com/2007/04/03/is-tribunes-leveraged-esop-worth-the-risk/#comment-61020 and USA Today’s article, “$8 Billion Deal Takes Tribune Private” - http://www.usatoday.com/money/media/2007-04-02-trib-zell_N.htm.
In other words, if you have a moment, express your views. It’s the most effective way to change opinions on ESOPs and employee ownership.
Not all coverage has been negative. This article was fair to ESOPs and stresses the importance of the ownership culture and a strong business strategy to the success of the ESOP.