More Economic Woes for the Times

By Ed Lasky

The American Thinker has been chronicling the journalistic problems at the Times since our inception. We have also followed the continuing price decline that has beset the stock over the years that it has suffered under the leadership of Arthur ('Pinch") Sulzberger, Junior-a scion of the founding family of the modern New York Times .

This decline has proportionally been worse than its peers in the struggling industry. Pinch is not just the chairman of the company but also the publisher of the paper. These types of dual roles are unusual since corporate governance principles would suggest a division of responsibilities to protect shareholders.

Pinch has never cared about the shareholders. His position is protected by an unusual dual class structure of stock. His family actually has only a small ownership interest in the Times but their shares have super-voting rights that have protected him from calls for his ouster.

Most recently, a Morgan Stanley money manager who had been advocating changes to benefit shareholders - including the idea that Pinch should relinquish one of his roles - had to admit that his efforts had failed because of the protection afforded the family by this inherently undemocratic dual stock structure.

Now comes news that, as the stock hits new lows, it has been cut to a sell by Bank of America corporation. Simultaneously comes news that displays Pinch's customary lack of courage and intelligence (see, for example, Hard News by Seth Mnookin where it is reported he has been selling his own shares at multi-year lows).

A rat deserting a sinking ship....

Update: The Times hit a new low today: $16.02. But the day is yet young.