Scripps Trimmed Execs’ Pay

By Mike Farrell -- Multichannel News, 3/22/2010 12:38:52 PM

Scripps Networks Interactive executives took a pay cut in 2009, as the economy weighed heavily on stock-based compensation, despite the parent of HGTV and Food Network having a strong year financially.

Scripps executive vice president and Networks president John Lansing took the biggest hit, according to the company’s proxy statement, filed with the Securities and Exchange Commission on March 15. Lansing’s overall compensation fell 18.3% in 2009 to $2.7 million from $3.3 million in 2008. The difference was mainly a decline in the value of stock-option awards during the year as his base salary remained $700,000. His option awards were more than cut in half from $1.2 million in 2008 to $547,062 in 2009.

Chairman and CEO Ken Lowe’s total compensation dropped 5.1%, to $6.97 million in 2009, and execut ive vice president and chief financial officer Joseph NeCastro’s total compensation fell 10.1% for the year, to $2.7 million. In both cases, lower stock option awards were the main reason for the shortfall.

The pay cuts come on the heels of what was a strong year for Scripps — 2009 revenue was down slightly to $1.5 billion from $1.6 billion in the prior year, but net income skyrocketed to $304 million compared to $23.6 million in the prior year.

Better times could be ahead. Scripps predicts that affiliate-fee revenue, which increased 16% in 2009 to $322 million, will rise again in 2010 to between $530 million and $540 million. That increase will be fueled by the addition of the Travel Channel (which Scripps acquired in December) for the full year and rate increases due its HGTV and Food networks. Scripps estimated that Travel will generate about $100 million in affiliate fees in 2010.