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Cygnus (Mostly) Restores Salary Cuts

Bonuses to give back 70 percent.


By Jason Fell
01/02/2008

Three months after Cygnus slashed employee salaries in a drastic cost-cutting initiative, the company is restoring some of those that were cut.

In an internal memo sent to employees on New Year's Eve, Cygnus co-CEOs Carr Davis and Tony O'Brien announced the restoration of some salaries that were slashed by 7.5 percent last fall. The restoration will be paid mid-January in the form of a special bonus payment, representing about 70 percent of the initial reduction. However, only salaried employees who are not eligible to receive commission, bonus or incentive payments will benefit from the restoration.

According to the memo, eligible employees will receive a bonus that equals 1.25 percent of their annual compensation, or roughly $560 on average. Cygnus executives who absorbed a larger salary cut-including O'Brien and Davis who saw a nearly 70 percent decrease-will not receive a bonus as part of this effort, according to Cygnus spokesperson Kathy Scott.

"Our employees work hard and [Davis and O'Brien] wanted to make sure they understand that they are very important to the company and that their work has not gone unnoticed," Scott says.

The dramatic pay cut was announced last October and was in response to greater-than-expected revenue shortfalls. "Recently we have begun to experience the decline in print revenue that has been affecting our industry for the last several years," Davis and O'Brien wrote in the memo announcing the cuts. "Because print represents more than 70 percent of the company's revenue, the growth from other areas is not enough to cover our growing deficit."

The October cuts came on the heels of a restructuring in July which organized the company around five brand-director positions overseeing the company's 15 market sectors, aimed at accelerating rapid growth, the company said.

In 2007, Cygnus' print products took a significant hit, but other groups such as the expo division and interactive sales realized growth. Overall, the company grew 5.5 percent, Scott says.

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Post Comment / Discuss This Story - Info/Rules

Yesterday: respected b2b experts ... today, JERRY SPRINGER!
Submitted by Anonymous on Wed, 01/09/2008 - 00:21.

When did the company I used to be proud to work for become the parody of the industry? Long about Paul Mackler time, I'm sure. Gerry and Blair understood the value of their most prized asset, the content (of course, they were quick to throw us under the bus for an inflated offer, but I'm trying not to let that affect my view of their perception of editorial integrity ... crazy like a fox would be the prognosis there). Cygnus was once Nordstrom’s … now it is Family Dollar, or even ACME Real Estate (I have some wonderful swampland to show you in Florida my friend). They promise things they can’t deliver. As a former employee who has seen all sides of the equation, they short-change both internal and external customers, and in the end, lose trust and faith from all parties. Why do we all watch this car crash in the making like the rubber-neckers on the road, ready to take pictures with our camera-phones and alert our friends to watch the evening news? BECAUSE WE ALL SAW IT COMING. To my friends who are still there, Bless you for trying to believe, but you drank the kool-aid. GET OUT. Trust me, it’s not terrible on the other side. It can be much, much better. And even if you end up working the night shift at the mini-mart and the day shift as a greeter at Wal-Mart (which is not likely the case, you will surely find someone to appreciate your amazing talent!! … they don’t pay that well anyway … ), you will still be continually washed over in relief as you witness (from afar) the huge crash and burn coming. What is your peace of mind worth anyway? Life is way too short. This industry is all about reputation and respect. This company has none of those things anymore. Be assured that more than b2b industry folks understand what is happening (it was proven at a trade show when client after client talked about it). You should not have to take the brunt of the juxtaposition that Cygnus forces you in, to be the “full-service” answer to clients and the butt-boy to the company. You deserve more than that. RESPECT yourself!
One thing is abundantly clear...
Submitted by Billy Kiyuka on Wed, 01/09/2008 - 09:39.

...and that is this: The upper management at Cygnus Business Media must surely be desperate to repair the damage that has been done by this PR nightmare if they're pretending to be happy employees in the hope of offsetting the angry masses. As a previous poster pointed out, they're pretty inept at it--those posts were obviously written by the execs, and I can tell that without even being a Cygnus employee. At our company, we have a number of ex-Cygnus employees working here. They're all extremely competent and talented--and they're all happy as hell to be out of Cygnus. And from speaking with them, and from reading e-mails they've received from people still working there, I'd say it's clear the employees hate it there. Pure and simple. Over the past couple of years (particularly the past year), I've rarely ever heard any positive things said about the company's working environment or its management. And that's a shame, because I can remember Cygnus once being known as a great company. Now it's become a farce, and if the "plant" posts from upper management are any indication of how little regard the execs have for their employees' concerns--not to mention how incompetent they are at creating good PR...I mean, really, those posts were almost embarrassing to read...whoever wrote those posts should be fired on the spot as the incompetents they are--then everyone should get out now before those minding the store run it into the ground. You guys are too good for that place. If they don't respect you, then they don't deserve you.
Hmmm? Should I really spend money with Cygnus?
Submitted by Anonymous on Wed, 01/09/2008 - 10:16.

As a customer, I have serious concerns about trusting Cygnus with my marketing dollars. Obviously, there are managment issues or there would not be so much chatter! I am sure the issues are very similar to many other b2b publishing companies, but perhaps the owners of this company need to employee leaders who can make difficult decisions, but also manage the workforce in a manner that is fair and appropriate. Leadership skills will make all the difference in a turnaround situation where change management is critical. Clearly the current Cygnus president, vice presidents and the "Band Leaders" are lacking these skills. I sincerely hope the owners take some serious action before I and other key customers move my dollars elsewhere. Find people (within or outside the organization) who are skilled at the following: Six most important actions for senior leaders to build employee engagement during intense organizational change (even in very difficult times): 1. Communicate a clear vision of the future 2. Build trust in the organization (this means do what you say you are going to do) 3. Involve employees in decision making that will affect them (even when decisions are difficult) 4. Demonstrate committment to company values (things like integrity, honesty , ethics etc.) 5. Respectfully respond to employee feedback (good or bad) 6. Demonstrate genuine committment to employee's well being
The Burger King is in the house
Submitted by Anonymous on Wed, 01/09/2008 - 11:26.

Dear...Dear Cygnus please bring back the Whopper! Everyone loves the Whopper sandwich and if it goes away then I am afraid the Big Mac will take it's place. And I don't mean "Mac"kler. Wow the outrage here and the cover up...it's a "scanadal" in the making. The Burger King trying to over throw Ronald Mc Donald, yeah he's a clown and funny looking but come on. Take care of the employees. This to the employees...you don't like what is going on...morale down..hard to get to go to work then sharpen up your resume. Just remember every this....pastors are always "greener" on the other side.
Pastors?
Submitted by Anonymous on Thu, 01/10/2008 - 10:07.

I hope the pastures are greener as well. (How'd the pastors get green, by the way? I hope they feel better.)
Customer concerned
Submitted by Anonymous on Thu, 01/10/2008 - 10:51.

Our company has been a long time customer and we have seen many negative changes in the last 2 years. We have found other places to spend our advertising dollars and are close to pulling all of the ads we run in Cygnus mags. I am saddened by the way the employees are being treated and wish them the best. There are many companies that do not treat the employees bad. You all need to find those companies and let the higher ups sink with the ship. Then they will realize they are note the ones that make money for the company, it is all of you.
Customers - don't leave on account of upper management
Submitted by former cygnus transportation group associate on Thu, 01/10/2008 - 13:01.

I have nothing to gain from this and I am not in uppermanagement. I don't even work there anymore. However, I ask that customers/advertisers of their respected industries not pull their advertising budgets. Why? Because the heart and soul of the magazine you choose to advertise with are not the executive team - they are the 4-5 people who make the magazine happen each month. Editors, sales, production, circulation, graphics and support staff. Penalizing "Cygnus" and pulling your ad budgets is really in the end, hurting your core group of associates who believe in their industry, believe in their magazine and last of all, try to deliver the best product possible to a b2b market. Without your support, the magazine will die. And what a sad commentary when really, Cygnus associates work their tails off to be the best at what they do. Don't walk away from them just because of the chatter...
re: don't leave
Submitted by Anonymous on Thu, 01/10/2008 - 15:40.

From what I read the mag. is going downhill from within. Several of there mags. are getting negative comments in the industy. Many of our customers have said that the mag. has no value, just ads. They liked what the articles use to say, but they have no content anymore.
Isn't it curious...
Submitted by Klyde on Thu, 01/10/2008 - 15:41.

That on the Cygnus executive bios page (http://www.cygnusb2b.com/executiveBios.htm), only one exec doesn't have a photo? Could it be that you need a soul for a photograph to develop? Maybe that could be a story in PTN!
Got you by the balls
Submitted by DD_lover on Thu, 01/10/2008 - 15:47.

Employees of the Melville branch of Cyngus are in a tough position. If they worked in NYC, it'd be easier to simply get out and find a new job, but most of them do not want to work in the city (can't blame them, either), so they're stuck holding their nose because they don't have to take the train to work. And for most of the employees (other than support staff like HR and IT) there are few other places to work on Long Island. Plus, many have worked at PTN/Cygnus for 10+ years, are comfortable and settled in, so it's not and simple as picking up and going somewhere else. Of course, if it gets so bad, then one has to consider other options. [As a funny omen, the letters I have to enter to publish this are FiERd]
Another curious thing
Submitted by Klyde on Thu, 01/10/2008 - 15:51.

When you click the "More" key for that executive's bio, you get an error! HA HA HA
WHY DO YOU NOT RESPECT THIS MAN
Submitted by Anonymous on Thu, 01/10/2008 - 15:53.

As Group Vice President, Dave Davel works closely with his publishers and editors to deliver quality media that reaches his advertisers' core customers. He was instrumental in launching the Cygnus Video Network which provides broadcast quality programming on several of Cygnus Business Media's websites, first premiering on ForConstructionPros.com.
"CYGNUS GAVE ME AIDS"
Submitted by I don't really have AIDS, it's just a metaphor on Thu, 01/10/2008 - 15:57.

...is what readers are probably saying, now that the gutting has reached full-bore stupidity levels. Yes, let's run full-page ads on the cover. Let's make the cover of Plastics magazine say "We LOVE you PLASTICS ADvErTiSeRs!"
Stop Snitchin'
Submitted by I am not who you think I am on Thu, 01/10/2008 - 16:02.

People who want to blame upper management should realize that upper management is upper management for a reason. So if you don't like it, skee-daddle. I doubt that EVERY rank and file employee is unhappy. What, have you done a poll or something? And if so, did you do that on company time?
The real problem
Submitted by OldFogie on Thu, 01/10/2008 - 17:38.

Is moving to the Quadrangle. What a dump, and no Nicky J's. Even Woodbury's offices were better!
Plants
Submitted by Anonymous on Thu, 01/10/2008 - 18:01.

I'm not sure how many of the comments are "plants" but if half of the discontent comments are true it's enough to convince anyone that there is a problem. Assuming that competitors are reading these comments they are "licking their chops". Office politics is always part of any "lay off" and this appears to be that policy in practice. My advice to anyone left there is use the time to polish the old resume up and get ready.
What is the REAL point here?
Submitted by Anonymous on Thu, 01/10/2008 - 20:14.

Perhaps instead of debating -- and denying -- how many employees are indeed disgruntled, perhaps the Cygnus executive team should focus their energies and their public face on developing and executing a campaign to improve the company image, both internally and externally. And by the way, good luck with that. Have you ever heard of Crisis Communication experts? Because if this ain't a PR crisis, I don't know what is.
respect is..
Submitted by Anonymous on Fri, 01/11/2008 - 11:01.

Respect is something you have to earn...the video network is something a 6th grader with a computer can put together in 10 minutes.
Bad PR...oh boy.....
Submitted by "the one" on Fri, 01/11/2008 - 12:49.

I was a previous employee here and the morale was on the downward when I was there. Looks like the last president RR and his "team" left at the right time huh isn't that curious but now by all the comments and the news of upper management releases of CEO, VP's, publishers and managers what kind of morale is there now...obvioiusly none by the comments on here. There is nothing better then looking at things that go wrong on the outside. Treat your employees good and they will stay and work hard. For those of you who choose to stay through all this and still wine about it...your doing it to yourself. Not to mention how could you trust anyone there with all the whispers by the coffee machine. No is safe.... Jerry Springer here they come!
"the one"
Submitted by Anonymous on Fri, 01/11/2008 - 17:16.

Hey "the one," if your post is any indication of your spelling, grammar,and proofing skills Cygnus is probably far better off without you.
re: "the one"
Submitted by "the one" on Fri, 01/11/2008 - 17:22.

In regards to your comment, I have a full time job that I care about. If you didn't like what I said oh well. The "spelling" yes I have a few errors but I'm not an editor like you probably are.....
To "Why do you not respect this man"
Submitted by Anonymous on Fri, 01/11/2008 - 19:14.

Are we speaking of the same person? Dave Devil? How can you respect someone that respects no one and has proven it time and time again? How can you even begin to stand up for him? Mind boggling! That said, Satan thanks you for trying to stand up for him.
Dave Davel
Submitted by Anonymous on Mon, 01/14/2008 - 14:11.

Did not launch the Cygnus Video Network nor ForConstructionPros.com. He was not instrumental in it, just knew how to talk loudly about it. Get your facts straight.
Another approach
Submitted by Anonymous on Wed, 01/16/2008 - 09:17.

McGraw Hill just eliminated 600+ jobs, or 3% of their workforce to reduce costs and boost shareholder returns. A temporary salary reduction doesn't look quite so bad in comparison.
Start divorce proceedings ...
Submitted by Anonymous on Wed, 01/16/2008 - 13:11.

I am entering this fray a little bit late but a friend at Cygnus passed me the link to this sad saga. Normally I would not subscribe to washing dirty linen in public but I felt compelled to contribute to this tale of woe because the derogatory remarks recorded to date could have an adverse impact upon the many friends I still have at Cygnus. I will kick off the proceedings by declaring that I am Gordon Gavin, a former VP at Cygnus who was let go after 20 years of absolute dedication to the success and well-being of what is now Cygnus Business Media. Quite frankly, I could [not] care less about ABRY Partners and Messrs. O’Brien and Davis, co CEOs, (vice versa I am sure) but I do care about all the wonderful people who still work for Cygnus, friends (and families) whose very livelihoods depend upon continued employment at Cygnus. My whole world was turned upside down when I was put out to pasture but I appeal to the disgruntled to please desist from the harsh criticisms being levied in this and any other blogs in netter land. ABRY Partners have made no secret of the fact that they would like to sell Cygnus so why thwart their efforts by broadcasting disparaging remarks about a company whose products are bibles in the industries they serve, whose employees are hard-working and proud, and whose readers (and customers) are given the respect they deserve? I know first-hand how great it was to work for all of the owners of Cygnus, even in ‘tough’ times. Now it is time to secure a decree nisi, to unshackle the chains and to find a new owner, so that faith and confidence can be restored in a great bunch of dedicated and talented people and first class products. There is life after ABRY so please do not spoil the chances of that happening sooner rather than later. P.S. Isn’t it strange that so many of the principal characters at Cygnus, past and present, have the same first and last initials, e.g. RR, MM, DD, JJ, … Respectfully submitted, GG.
Class Act
Submitted by Anonymous on Wed, 01/16/2008 - 19:20.

Man, that Gordon Gavin is a class act all the way...
What Gordon Said...
Submitted by Anonymous on Thu, 01/17/2008 - 11:23.

As usual I agree with Gordon. I left the company a few years ago because I didn't agree with some of the management decisions being made at the time (some of which have been noted already). That was my choice. I did not, and would not, air my displeasure and concern about the direction the company was going in public. For every bad manager in the company there are many other hard working, dedicated employees who NEED (and WANT) their job. There are still good pubs that serve an important role in their industries. Is the company making some horrendous mistakes? Obviously. But keep it in the family. And if you are miserable...try your best to get out. Moving on saved my sanity (and probably my marriage!)
I can't believe that anyone
Submitted by Anonymous on Thu, 01/17/2008 - 17:56.

I can't believe that anyone at Cygnus is surprised by what's going on. It was obvious at Davis & O'Brien's first "town hall meeting" what they were about. They weren't brought in to build morale---they were brought in to build value. Trouble is, they kinda suck at that, too. The obnoxious thing about these two isn't that they couldn't care less about the company or the employees. The obnoxious thing is that they rarely try to hide it. Two examples: 1) O'Brien keeping every employee waiting for over a half hour because he was late showing up for the employee awards ceremony. 2) Davis explaining at sales meetings that, "I've given Tony the bright shiny object, and he hasn't come through with selling it." That's it, folks: Cygnus is a "bright shiny object" to these two yokels, and it's ok to make your over 200 employees wait 30 minutes to get their awards while you make phone calls.
Gotten out of hand
Submitted by Anonymous on Fri, 01/18/2008 - 07:50.

I too am a past employee. But I respectfully disagree with GG. The company has gotten way to leveraged, and the level of respect people are given is way too low. Never in the history of this company have people been treated as badly as now. I wish I would have raised some hell before leaving, but didn't want to "rock the boat" or "burn bridges." One comment earlier is that the only difference between this transiation and the others is these blogs. I disagree also. No one had a problem with cutbacks in the past - and if they did, kept it to themselves. This was because we felt bad - and were still respected - so we bit the bullet and did it. This time, is very different. We were disrespected, then cut back, then still given more work! Also, Tony and Carr had the Balls to get up in front of the employees, stand "We are profitable," but we need to cut your salaries to meet our financial obligations. Sorry folks, it's not the employees fault that Abry bet and lost. Abry may be a bunch of dishonest gamblers, but cygnus employees are not. And what's to gain if the employees just roll over and take the mistreatment and abuse? Another bunch of gamblers? At some point, the employees have to put their foot down and say enough is enough - either by leaving, or by refusing to be treated so badly, or by joining together on a walkout, or by making the incompetence of the management know publicly in this blog. I think the employees owe it to themselves to fight back and regain some level of respect. Future prospective buyers must know that they can't walk in and treat people the way the way ABRY did. If I could have a "do over," I would lead the charge.
The Truth
Submitted by Anonymous on Thu, 01/24/2008 - 14:52.

I am totally disgusted with the latest happenings at Cygnus. The firing of Jeff Jost, the Inside Sales Director, and more importantly, the abolishment of the entire Inside Sales Deparment is completely foolish and short-sighted. The Inside Sales dept produced over 4 million in sales last year(one of Cygnus' largest revenue producing groups by the way) and grew over some 20% (approx). According to Dave Davel, this "reorganization" was done in order to help the Inside Sales members move upwards in the company. That's the biggest bunch of bullshit I've ever heard. The real reason: Dave wanted Jost out, no matter what the costs. Now he's out along with the entire Inside Sales Dept. Cygnus might not see it right away, but they will be losing a ton of revenue without the hard work of Inside Sales and Jeff Jost. My question to Dave: If this move was made to help Inside Sales move up, why do all your "former" Inside Sales employees want to quit right now? ABRY--keep a close eye on your precious Dave Devil. He's got Cygnus headed down the toilet.



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