Pearson Chief Waives Bonus

Chief executive of Pearson, Dame Marjorie Scardino (see Pearson Chief Executive To Be Made Dame) and other senior executives will not receive a bonus this year as the advertising downturn continues to take its toll on the company.

Scardino was eligible to receive a bonus, reportedly in excess of £150,000, but has opted not to take it as Pearson, which publishes the Financial Times, prepares for what it believes will be a “flat advertising market” in 2002. Other senior Pearson executives including David Bell, director of people, and John Makinson, finance director, have also chosen not to receive their bonuses, believed to be more than £200,000 in total.

Earlier in the month Pearson, which recently raised the cover price of the Financial Times from 90p to £1 (see Pearson Increases FT Cover Price), announced that profits fell by 12% in 2001, from £333m in 2000 to £294m. According to Pearson’s finance director John Makinson: “We are not seeing any deterioration in the advertising climate, but also there’s been no recovery. We are making plans based on a flat advertising market in 2002. (see

Pearson: 020 7411 2000 www.pearson.com

Recent Related Stories from NewsLine: GWR Sees ‘Some Improvement’ In UK Radio Market EMAP: Consumer Mags Revenue Stable, Radio Weak Media Outfits Rare Among “Best Companies To Work For”

Subscribers can access ten years of media news and analysis in the Archive