Former McClatchy executive receives $690,000 in severance pay

Downsizing at major newspaper companies doesn't just affect the reporters, advertising salespeople, designers, and the others who are on the front line everyday. Sometimes, company executives are downsized, too.

The difference is a simple one. When the lower level employees are fired, often after many years of loyal service, they have to wonder where their next paycheck is going to come from.

Not so for fired executives.

Case in point, Lynn Dickerson, who until this week was one of three McClatchy newspaper officials to hold the title, vice president, operations. McClatchy Newspapers is the parent company of the Kansas City Star. The news releases issued by McClatchy praised Ms. Dickerson and noted:

“We continue to restructure and transition to a new business model – one that requires us to be smaller and more efficient in every area of the organization. This includes our senior management and corporate offices,” said Gary Pruitt, McClatchy’s president and chief executive officer. “Lynn is a talented, dedicated and engaging executive. Not only was she an outstanding publisher, but she has proven herself to be an important contributor to the corporate team, building excellent relationships with the papers she oversees and working hard to help us navigate through the recent economic downturn. We thank Lynn for all that she has done at McClatchy. She’ll be missed by all of us who have worked so closely with her.”

“I leave McClatchy with a heart full of gratitude for the many opportunities afforded to me and my family over the last nine years,” Dickerson said. “I have been a newspaperwoman for almost 30 years and I’ve worked for a variety of newspaper companies. I can say without hesitation that McClatchy is the finest of them all. In spite of the difficulties of the last few years, I feel blessed to have spent my career doing meaningful work in an important industry and for such a good company. I wish my many friends at McClatchy all the best.”

One reason Ms. Dickerson might be saying such wonderful things about McClatchy is the lucrative severance package she received. McClatchy filed the severance agreement with the Securities and Exchange Commission.

She will receive a lump sum $690,000 severance payment and will have her health insurance paid for one year.

It appears that executives, even the ones who get fired, fare far better than the workers in today's economic climate.