It’s media conglomerates vs. the world. That’s how it seems to be breaking down in the fight over whether to disclose executive compensation at publicly traded corporations.

The Securities and Exchange Commission’s proposed rule would obligate companies to reveal total compensation to the highest-paid employees, even if they are not top executives. That raises the possibility that not only top managers at well-performing media companies would find their names in future SEC filings, but producers and performers would as well.

On the final day for public comment, five media giants sent a letter to the SEC opposing the rules. The group included The Walt Disney Co., NBC Universal, Viacom, News Corp. Inc. and CBS Corp. Also, Jeffrey Katzenberg, chairman of DreamWorks Animation SKG, submitted his own letter of opposition.

But the SEC Web site featured a form letter of support for the rule, and more than 15,500 people clicked on it. Academics, financial gurus and union officials also submitted letters in favor of transparency for investors.

The main arguments against disclosure involve employee privacy and competitive issues. Katzenberg’s letter states the rules would invade the privacy of employees’ earnings, threaten a company’s ability to keep valuable employees and provide limited benefit to investors.

But a letter from Marsha Richter, chief executive of the Los Angeles County Employees Retirement Association, supports the SEC proposal as a way to “dramatically improve an investor’s ability to decipher how corporate CEOs, directors, and senior executives are compensated and help to mitigate investor concern about the skyrocketing level of CEO pay.” Richter’s organization controls $34.4 billion in pension-fund investments.

With the period for public comment over, the commission heads back to weigh executive versus investor interests.

Wilshire Weekly


The Santa Monica-West Los Angeles corridor has a new publication: Westside Chronicle. The start-up weekly faces competition from local papers in Culver City on the south, Malibu to the north and downtown on the east not to mention papers in Santa Monica and Beverly Hills right in the middle. Then there’s the Los Angeles Times and LA Weekly all over. So where’s the niche to fill?

“You may look at it as a crowded market, but 200,000 people don’t have any local news,” said James Lynch, publisher. He describes the Times as operating at the 50,000-foot level, covering world events, while the Chronicle operates “at the 100-foot level, or even at the grass roots.” Editorial coverage includes local schools, sports, and community events.

Padma Sahgal, former editor-at-large for the Beverly Hills Courier, is president and principal financial backer for the new publication. The Chronicle hopes to attract advertising from auto dealers, banks, retailers and local service providers. “In all, about 300,000 people live in this area. They also happen to be the most affluent and well-educated 300,000 anywhere in the world,” Lynch said.

The free paper is delivered to 60,000 businesses and residences on Sunday, with eventual plans to move onto the newsstands. The Chronicle maintains a Web site: westsidechronicle.com.

Playing Ball


Hollywood-based Creative Artists Agency scored a touchdown by luring superstar sports agent Tom Condon the inspiration for the central character in the film “Jerry McGuire” away from International Management Group.

Now they may be ready to add the extra point.

Former USC quarterback Matt Leinart has fired his agent, Leigh Steinberg, and will almost certainly let CAA and Condon represent him during the NFL draft on April 29. Leinart, who had been allied with CAA on the marketing front and for non-football representation, is expected to be the first quarterback selected.

The 22-year-old Heisman Trophy winner practically personifies the sports-showbiz crossover, with nearly as much off-field appeal as on-field talent. He led the Trojans to two national titles and last month earned the title Hottest Male Athlete of the Year from voters at ESPN.com.

If Leinart signs with CAA so far he’s filed paperwork with the player’s union and Steinberg has conceded his firing it would confirm a trend of Hollywood agencies moving into sports.

Last month the Gersh Agency, a shop known for its comedy talent, bought Beverly Hills-based Steve Feldman & Associates, a sports management firm. The new Gersh Sports division gives the agency credentials to represent sports figures in salary negotiations, in addition to acting, licensing, and marketing deals.

One-stop-shops may or may not serve clients better. Steinberg has handled the first pick in the NFL draft eight times and was the agent for Steve Young, Troy Aikman and Warren Moon. Now Condon and CAA are in line for a major payday. As the first quarterback chosen, Leinart would be angling for a contract in the $50 million range.

This & That


Kentucky-based Enlace Spanish Yellow Pages has reached a deal to buy El Directorio in Los Angeles. Enlace will publish directories for Los Angeles, Orange County, Riverside and the San Fernando Valley with total distribution of nearly 1 million. The first Southern California directory under the Enlace name will publish in fall 2006. Enlace is a division of Cobalt Publishing, a subsidiary of private investment firm Blue Equity.

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Marketing conglomerate Emak Worldwide has hired Peter Boutros as chief executive for its Logistix Worldwide subsidiary. He takes over leadership for four agencies: Logistix, Megaprint, Pop Rocket, and SCI Promotion. Boutros recently served as chief operating officer at promotion firm The Creata Co. Prior to joining Creata, he spent 10 years in licensing and marketing at The Walt Disney Co. He replaces Jon Kramer who becomes president of Emak’s Integrated Marketing Services.

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QuikDrop International

has hired Santa Monica-based

Palisades Media Group

to oversee media buying and planning for the 90-outlet eBay drop-off store franchise, which is based in Costa Mesa. Along with direct response, Palisades will provide non-traditional media services such as coordinating strategic alliances and branded entertainment opportunities.

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Spanish-language newspaper Hoy has named Gerald “Jerry” Symon as General Sales Manager for its Los Angeles edition. Previously Symon was Vice President of Business Development at Alternative and Innovative Marketing, a promotion firm specializing in multi-cultural markets. He also has worked as sales manager at Univision’s Los Angeles radio group and publisher of MiCasa, a weekly newspaper published by defunct Hispanic Broadcasting Corp. Hoy, which also publishes Chicago and New York editions, is owned by Tribune Co., owner of the Los Angeles Times.

Deborah Crowe contributed to this column. Staff reporter Joel Russell can be

reached at (323) 549-5225, ext. 237, or at

[email protected]

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