BNP to Cut Employee Salaries 25 Percent

Five and 10 percent salary cuts have become near-commonplace for magazine publishers in 2009, but this week employees at BNP Media learned the company will cut staff salaries by 25 percent.

The pay cut is effective May 1.

In an internal memo obtained by FOLIO:, BNP co-CEOs Harper, Mitchell and Taggert Henderson said banks are “forcing near unattainable terms on companies such as ours, considering the fact that there has been such a severe downturn in the economy.”

“While we (the Henderson family) are certainly partially to blame for having taken on such a high amount of risk, were it not for their demands, we would be able to just pay them and move on,” the memo reads. “But, beyond just paying them (which we are doing and can continue to do) they require we meet certain financial covenants; these are what are causing us such serious problems. This unfortunate set of circumstances has forced us to make cuts that none of us could have ever imagined.”

Concurrently, BNP is also adopting a four-day workweek for the summer. (Employees will be paid for each Friday during that span, albeit at the reduced level.)

Harper Henderson says there is no set timeframe for re-instituting salaries. “The term we’re hearing in all sectors is ‘survival,’” he told FOLIO:. “We need to survive until this economy can turn around and everyone can get back on their feet and back to business as usual. I don’t see any threat to publishing or long-term damage to what we do in terms of magazines or Web sites or shows, but this some sort of strange, perfect storm that’s been ongoing.

“We want to make it to the other end and make sure we have as many employees as we possibly can on the other end,” he continued. “I’m hearing this is the bottom and I’m hearing good things about 2010. If that’s the case, we’ll start seeing things improve in all areas.”

BNP publishes more than 40 titles, including Sustainable Facility and Appliance Design. In 2007, BNP acquired Ascend Media’s Professional Services Division, which included 17 magazines in the food, beverage and packaging space, for an estimated $30 million.

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Post Comment / Discuss This Story - Info/Rules

C'est la vie

Submitted by Anonymous on Tue, 04/28/2009 - 20:03.

Unfortunately there's little prospect that this will turn around. And this is not exclusive to BNP. Advertisers will get used to and comfortable with their slimmed down Google, other web, and perhaps 4x,3x, or even 2x print ad schedules going forward. We have all seen this paradigm shift taking place over the past five to seven years. The recession has only accelerated the shift. It is time also for everyone to move from denial straight to acceptance (perhaps with a brief stop at depression along the way). I beleive there are very few traditional BtoB media businesses and brands that will see anything close to resembling their best days.

Publishing execs should take a bigger hit

Submitted by Anonymous on Wed, 04/29/2009 - 14:37.

If, over the years, publishing execsutives at companies such as BNP, Penton and others had made salaries comparable to the editors, designers, Web site managers, etc. -- the creative talent responsible for producing the products that have provided executives with the income necessary for country club memberships, Caribbean vacations, and BMWs, then perhaps publishing companies wouldn't be experiencing the financial hardships to the extent they are today. I'd like to see the execs responsible for making bad financial decisions give up a year's worth of their salaries in order to sustain their companies and the employees to whom they owe so much. For years, publishing execs have taken on too much risk and when it doesn't work out, they keep their salaries and benefits, and it's the editors and designers that lose jobs. Enough! BNP's "Henderson family" is willing to accept "partial blame for having taken on such a high amount of risk." Partial blame and partial salaries . . . What a duo!

Sounds like they need a bailout?

Submitted by Anonymous on Thu, 04/30/2009 - 11:45.

Too bad BNP doesn't have a friend in DC. They'd get a bailout too.

Good job, BNP.

Submitted by Olly McPherson on Thu, 04/30/2009 - 12:24.

The Sam Zell approach: Overleverage a purchase and then ruin the place with your debt. (Complete disregard for your workers doesn't help either.) BNP employees--look into organizing a walk-out/sick-out.

What goes around comes around?

Submitted by Anonymous on Thu, 04/30/2009 - 12:31.

We're surprised it's only a 25% cut in pay, we were betting it would be more. Leaving us to understand rate cutting does work after all.

25% pay cut across the board = best employees bolting

Submitted by Anonymous on Thu, 04/30/2009 - 12:48.

One can argue that taking a unilateral approach like this is fair as it treats everyone the same, but as a manager of a large department at a B2B media company who just went through a similar exercise, I would have much preferred been given the choice of cutting salaries on an individual basis. It would have allowed me to "right-size" some people while preserving my best employees. Now, the complacent ones are grateful they have jobs and the best employees are treated like dirt and are off looking for other opportunities.

Not defending the action, but BNP still a great company

Submitted by Anonymous on Thu, 04/30/2009 - 14:20.

While I agree 25% across the board is a tough pill to swallow, BNP still an absolute great place to work - in spite of the lighter paychecks! As one might expect, the entire story cannot be told from obtaining a brief memo.

I agree - BNP Media a good company

Submitted by Anonymous on Fri, 05/01/2009 - 09:42.

I have worked at several publishing companies in addition to BNP Media and I still think BNP Media is a good company. Yes, it is tough to get a 25% pay cut but overall the company has been good. I have been treated fairly in the past and fully expect that I will be treated fairly in the future.

Everyone punished by bad decisions

Submitted by Anonymous on Fri, 05/01/2009 - 09:49.

It is an absolute travesty that all company employees are being subjected to such harsh cuts. This drastic action is undeniably the direct result of their awful acquisition, rather than just the poor state of the economy. BNP failed to analyze the titles it would be taking over. And when the dust cleared, they were left overpaying for a bunch of magazines that could never possibly make any money and will probably be folding soon enough. While a lot of the BNP titles are tanking, many are actually thriving. But instead of being rewarded for carrying the company, those employees are being punished. What sense does it make to cut their pay? I don’t see how that could possibly motivate anyone to sustain their level of effort or increase their productivity for the greater good. It’s a sad truth that BNP will probably not be able to come out of this. How many times does one read a news story about a company cutting employee salaries by this much and then bouncing back and re-instating wages down the road?

BNP is a good company

Submitted by Anonymous on Fri, 05/01/2009 - 12:11.

No, a 25% pay cut is not easy, but I think that the Henderson's had to make this hard decision for reasons outsiders would never understand. In fact, some of the magazines that "may" be suffering, are #1 in their industry even when times are hard. People, the economy does play a huge part in all this, lets get real.

Too early to tell

Submitted by Anonymous on Fri, 05/01/2009 - 14:37.

While the decision BNP made to survive the downturn is painful for all employees, it is too early to judge. If BNP delivers on the back pay it owes employees and restores salaries to original levels when the economy improves then it will be a great success story. If business comes back and they don't repay their employees, the best ones will quickly leave, possibly crippling the company. If BNP fails or falls further, then the 25% cuts will seem minor in hindsight.

BNP Media is still a great company!

Submitted by Anonymous on Fri, 05/01/2009 - 18:51.

The salary reduction is painful for all of us but I don't beleive it was a reckless decision. BNP Media is a great company to work for and the Henderson family has always been fair and generous. It is a very well-run, profitable company. Unfortunately, Comerica Bank is holding us hostage. There are still MANY dedicated, loyal employees, such as myself, that remain positive. The media industry is changing daily and most of us welcome the challenge and find it exciting and motivating. We look forward to each challenge and our ever-changing jobs. A positive attitude will get you far in life! Not a walk out, a sick out, or expecting your employers to owe you anything more than a paycheck.

LET'S REFRESH OUR MINDS ABOUT BNP

Submitted by Mr. Balls on Fri, 05/01/2009 - 19:18.

Does anybody remember the way those Henderson brothers wasted their money (obviously Comerica's money) just to be able to get rid of the Stagnito family and their Vice Presidents? They did not even give them the opportunity to leave the company like human beings. Suddenly they popped up like mushrooms after the storm. Please ask anybody who either was fired or had to deal with them in the past. Now they are almost on Chapter 11. I won't say that I enjoy their fate because I respect God and the workforce is still there, just wanted to remind everyone, remember the movie: We know what they did last summer (sorry, two summers ago).

So let me get this straight...

Submitted by Anonymous on Mon, 05/04/2009 - 12:56.

So the big wigs take a big risk and the people that actually DO the work will (as usual) suffer? What a joke. Are the executives taking a salary hit as well? Quote... “While we (the Henderson family) are certainly partially to blame for having taken on such a high amount of risk, were it not for their demands, we would be able to just pay them and move on,” the memo reads. “But, beyond just paying them (which we are doing and can continue to do) they require we meet certain financial covenants; these are what are causing us such serious problems. This unfortunate set of circumstances has forced us to make cuts that none of us could have ever imagined.” As I read this I wanted to vomit. They acknowledge they made errors. They acknowledge they took on too much risk and now they are surprised when the banks expect payment? I say the execs should suck it up, THEY take the paycut (since it was their brilliant idea to carry the risk) and leave the people who do the work alone.

You can never win an argument with an ignorant person

Submitted by Anonymous on Tue, 05/05/2009 - 11:17.

Let me get this straight. The Hendersons should not be taking Caribbean vacations, driving BMWs, or joining country clubs because it's their job to support us and take care of us. Get real. Sounds like you think BNP Media is a charity. And when it all turns around, which it will, I hope you’re not first in line looking for a bonus. There are many bitter, angry people that need to let it go or get out.

Pay-cut

Submitted by Anonymous on Thu, 05/07/2009 - 10:30.

Let's all bare in mind that this is not the first measure BNP has made to insure it's "survival." Earlier in the year they laid-off 10%, and the next day did a pay cut of 15%. So this news is on top of the original pay-cut. So employees are not getting just a single 25% pay reduction. So employees' salaries are reduced to below what they were originally offered for the job in the first place. I would have preferred getting a subtaintial pay-cut over what BNP actually did, being the 10%.

Worst management ever

Submitted by Anonymous on Thu, 05/21/2009 - 10:22.

BNP has the worst management for whom I have ever worked. They acquired Stagnito with a total disregard for the office culture they were absorbing -- one that worked damn well -- and imposed rigid, insulting, factory-like rules across the board, then basically reversed course on the strategy that made these books a success. Now it turns out they made a deal with the devil due to their short-sighted arrogance, and now we're all suffering. These people who think BNP is such a great, fair company -- have you ever worked anywhere else?

Give BNP time -

Submitted by Anonymous on Mon, 05/25/2009 - 21:08.

I worked for Ascend Media and now BNP and anyone who considers the "Stagnito era" to be the good old days needs to have their heads examined. The Stagnito's took nepotism to a new level hiring and promoting each other regardless of talent or merit. They surrounded themselves with a cadre of syncophant managers whose best talents were following orders and currying favor with the Stagnito's. Office "culture", you've got to be kidding? The culture was dominated by the pathetic egos of top management and the even more pathetic Stagnito wanna-be's who blindly followed them. BNP senior managemenmt has more class, intelligence and publishing know-how then the Stagnito's could have ever dreamed which is they're in and Stagnito is out. Let's see how this all looks come September.

Why would you want to work here...

Submitted by Nanci Kassab on Thu, 05/28/2009 - 11:53.

Yes, times are tough and BNP is making very difficult decisions for the future of the company & in turn our future! Are they the only company? NO! Have you looked around to see what’s going on in our environment? Have you already forgotten the good times at BNP, well here’s a reminder: 1) Work less than 40hours per week; 2) Paid ½ -day Fridays all summer long; 3) 10 to 15 paid days off during the Christmas\New Year break; 4) Bonuses paid to staff; 5) 2 weeks paid personal time off; 6) At least 2 weeks paid vacation time off; 7) Multiple gift cards to all staff during the holidays; 8) 401k match; 9) Great casual work environment & great people to work with; 10) Holiday lunches…I could go on and on. Yes, we did receive a 25% pay cut. Yes, some of the items we don’t have at this time, but I’m confident we’ll get them back when the company does well again. And it will! For those of you who complain, REMEMBER – BNP Media is an “At-Will” employer, you’re free to leave whenever you want to; instead of complaining. Be grateful you have a job at a good company & you're receiving a pay check. By the way…the Henderson’s ROCK!

If BNP is so great why did they lay me off?

Submitted by Anonymous on Mon, 06/01/2009 - 20:29.

I'm sure you won't be singing their praises when they get rid of you too. Enjoy your 25% less salary until then.

Get a grip

Submitted by Anonymous on Tue, 06/02/2009 - 13:40.

It really sucks for anyone who got laid off, I know what that feels like, but instead of harboring ill will towards those who still work at BNP, how about you move on with your life and stay positive? Sorry to pull out "life's not fair" but it isn't. And for those of us that are left, yeah, a pay cut sucks but I WILL enjoy my 25% less salary because it IS a salary. 15% of people in Michigan HAVE NO JOB, so I'll be grateful that I work somewhere that I enjoy and will do what I can in this tough economy and tough days for media to get through it. Because it's also not fair for my countless friends and family who are laid off too. I who still has a job, should not be whining to them. And maybe I won't have a job in 3 months, or 6 moonths, or 9 months, but if that happens I'll keep the same positive attitude to find my next path and not whine about it a month later. The complainers are the ones bringing this economy and this country down. So thanks!

Wow

Submitted by Anonymous on Wed, 06/03/2009 - 00:26.

I get laid off and I'm the one bringing the "economy and this country down?" Your BNP ran my company, once Stagnito, into the ground. And I heard recently they laid off a "Stagnito" designer to save a Troy designer. I see where the Henderson's loyalties are.

How did BNP run the Stagnito's down when they chose to sell!

Submitted by Anonymous - but still @ BNP on Thu, 06/04/2009 - 14:52.

Get your facts right before you post something you know nothing about, it's not like the Henderson's walked into the Stagnito's office and dragged them out by there feet, you make it sound like BNP is run by the Mafia. This is not a Soprano's TV show, this is reality. It is 2009, watch the news, read the paper, or ask your neighbor and you will see that it is hard times all over the country not just here at BNP! It's not just happening here, it's everywhere.

I agree with Olly

Submitted by Vivian Mann on Thu, 06/04/2009 - 21:34.

BNP is based just outside of Detroit, which is located in an economically depressed state. Chicago is the third largest city in the country. Why are Chicago-area BNP-ers still there? Walk the walk. Let the company sink and burn. (What would Norma Rae do?)

You've got to be kidding

Submitted by Anonymous on Tue, 06/09/2009 - 15:02.

Hey, "Give BNP Time," what planet do you live on? BNP marched in here wielding brickbats, imposing military-style rules completely based in mistrust of employees and totally lacking in respect for us as professionals. The Stagnitos are the true class act; the Troy Triplets are a joke. As soon as things pick up and folks can afford to leave, BNP is going to be left in the dust.

Is it true?

Submitted by Anonymous on Thu, 06/11/2009 - 01:25.

The word on the street is Paul Chaps with Warren Thayre have left the company as their magazine will be closed down. Will there be more closings as the month progresses?

What street are we talking about?

Submitted by Anonymous on Thu, 06/11/2009 - 15:36.

Paul and Warren left to start their own magazine, Frozen & Dairy Buyer. Refrigerated & Frozen Foods Retailer is not being closed down.

No, you've got to be kidding!

Submitted by Anonymous on Fri, 06/12/2009 - 23:26.

Like I said, give it time. Quality, class and intelligence will ultimately prevail. The poor misguided souls who pine for the good old days will be resigned to langusih in those pitiable memories. The former regime is now a relic, a sad tired relic.

BNP to Cut Employee Salaries 25 Percent

Submitted by Anonymous on Sat, 06/13/2009 - 14:28.

As a fomrer BNP Publisher who offered to buy a group of their titles before the print crash, I wish them all the best. My people were told by the Hendersons that they "have everything under control". It certainly appears that way.

"my people"

Submitted by Anonymous on Tue, 06/16/2009 - 07:32.

To the former BNP publisher who offered to buy a group of their titles - what's with the "my people" shtick? What, did you have your sister call?