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Big Investor Tells Sun-Times Group to Cut More, Pay Execs in Stock

Magazine article Editor & Publisher

Big Investor Tells Sun-Times Group to Cut More, Pay Execs in Stock

Article excerpt

Saying it was "extremely disappointed" with the collapse of the price of Sun-Times Media Group (STMG) shares this year, the company's second-largest shareholder on Tuesday demanded even deeper cost cuts at the Chicago-area newspaper publisher -- and that top executives should be paid in stock rather than in cash in 2008.

"Sun-Times should henceforth compensate the company's chairman, chief executive officer, and directors of the board entirely in equity compensation (i.e., no cash compensation)," the Boston-based K Capital Partners LLC Portfolio Manager Abner Kurtin said in the letter, which was filed with the Securities and Exchange Commission (SEC). "For each individual, the level of such compensation for 2008 should not exceed the level of that individual's 2007 total compensation."

The hedge fund owns a 9.8% stake in STMG, and has been harshly critical of the chain in the past. In August, K Capital urged STMG's board to sell the company.

In its filing Tuesday, K Capital also demanded STMG spend the remaining amount in its previously announced share repurchase program "extreme undervaluation of the current stock price. …

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