Jill Abramson left the New York Times’s executive editor position today and was replaced by Dean Baquet, the managing editor at the newspaper. At The New Yorker, Ken Auletta writes about what happened behind the scenes:
As with any such upheaval, there’s a history behind it. Several weeks ago, I’m told, Abramson discovered that her pay and her pension benefits as both executive editor and, before that, as managing editor were considerably less than the pay and pension benefits of Bill Keller, the male editor whom she replaced in both jobs. “She confronted the top brass,” one close associate said, and this may have fed into the management’s narrative that she was “pushy,” a characterization that, for many, has an inescapably gendered aspect. Sulzberger is known to believe that the Times, as a financially beleaguered newspaper, needed to retreat on some of its generous pay and pension benefits; Abramson had also been at the Times for far fewer years than Keller, having spent much of her career at the Wall Street Journal, accounting for some of the pension disparity. Eileen Murphy, a spokeswoman for the Times, said that Jill Abramson’s total compensation as executive editor “was directly comparable to Bill Keller’s”—though it was not actually the same. I was also told by another friend of Abramson’s that the pay gap with Keller was only closed after she complained. But, to women at an institution that was once sued by its female employees for discriminatory practices, the question brings up ugly memories. Whether Abramson was right or wrong, both sides were left unhappy. A third associate told me, “She found out that a former deputy managing editor”—a man—“made more money than she did” while she was managing editor. “She had a lawyer make polite inquiries about the pay and pension disparities, which set them off.”
One great problem with financial journalism, especially in the decades leading up to the crash, has been that it’s often written in an argot understandable only to the already highly financially literate. Andrew Ross Sorkin doesn’t usually employ such specialized language. This has led to the mistaken belief that he’s explaining the industry to regular people. In fact, he is a dutiful Wall Street court reporter, telling important people what other important people are thinking and saying. At the same time, he is Wall Street’s most valuable flack. He isn’t explaining finance to the people—you’d be better served reading John Kenneth Galbraith to understand how finance works—he’s justifying it.
The modern finance industry is at a loss when it comes to justifying its own existence. Its finest minds can’t explain why we wouldn’t be better off with a much simpler and more heavily circumscribed model of capital formation. Sorkin likewise can’t make his readers fully grasp why the current system—which turns large amounts of other people’s money and even more people’s debt into huge paper fortunes for a small super-elite, and in such a way as to regularly imperil the entire worldwide economic order—is beneficial or necessary. But the New York Times and Wall Street each need him to try.
Photo via Wikimedia Commons
Jed S. Rakoff, a United States District Judge, looks into why there were no criminal charges against bank executives, despite clear findings of fraud:
In striking contrast with these past prosecutions, not a single high-level executive has been successfully prosecuted in connection with the recent financial crisis, and given the fact that most of the relevant criminal provisions are governed by a five-year statute of limitations, it appears likely that none will be. It may not be too soon, therefore, to ask why.
One possibility, already mentioned, is that no fraud was committed. This possibility should not be discounted. Every case is different, and I, for one, have no opinion about whether criminal fraud was committed in any given instance.
But the stated opinion of those government entities asked to examine the financial crisis overall is not that no fraud was committed. Quite the contrary. For example, the Financial Crisis Inquiry Commission, in its final report, uses variants of the word “fraud” no fewer than 157 times in describing what led to the crisis, concluding that there was a “systemic breakdown,” not just in accountability, but also in ethical behavior.
On the past, present and future of Manny Pacquiao, who was knocked out in December and now is returning to the ring. And despite earning more than $200 million, Pacquiao doesn’t have much of it left:
In the Times article, Michael Koncz, singled out Pacquiao’s Achilles’ heel: “The downfall of Pacquiao, if there is one, will be his kindness and generosity. At some point, I fear that’s going to catch up to him.” Beyond Pacquiao’s generosity, he reportedly squandered millions from gambling. That doesn’t even account for his fleet of cars and extensive property holdings, including houses, condos, apartments and such an intense desire to give his money away to the poor he had to hire people simply charged with the responsibility to apologize and prevent him from throwing money at all the open hands spread out before him.
Why was New York Times CEO Janet Robinson fired? A look inside the political battles and financial troubles that led Arthur Sulzberger to let Robinson go (with a $24 million exit package):
“Interviews with more than 30 people who are intimately familiar with different aspects of the Times’ business (none but a spokesperson would speak for attribution—this is the paper of record, after all) have made it clear that Gonzalez’s rise and Robinson’s fall, and the ensuing leadership vacuum inside the paper, were symptomatic of larger forces at work. Even as a new pay wall was erected on the Times’ website last spring to charge customers for access, the company’s performance, including an alarming dive in print advertising when other media companies were beginning to recover, was faltering, and Sulzberger was under pressure both financial and familial to throw Robinson overboard.
“As the paper’s stock price has declined in recent years, there has been increasing unease among the Ochs-Sulzberger clan, who control the paper through a special class of shares. Three years ago, facing huge debt problems, the company suspended the lucrative stock dividend that once flowed quarterly to the family’s 40-plus members, intensifying the need to solve the intractable advertising problems of the newspaper in the digital age and figure out a way to turn the family’s cash spigot back on. Janet Robinson, the company’s advertising brains, found herself caught between her increasingly remote boss and a frustrated family worried over the future of its 116-year-old fortune.”
Profile of The New York Times’ Gretchen Morgenson
We asked a few writers and editors to choose some of their favorite stories of the year in various categories. Here, the best in arts and culture writing.
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Earlier this year, Pitchfork began publishing Sunday reviews that explore albums released in the time before said site debuted. This, in turn, has led to a whole lot of smart writers weighing in on the classics, the cult classics, the interesting failures, and the historically significant. Jeff Weiss’s epic take on “Jackson’s final classic album and the best full-length of the New Jack Swing era” is the sort of narrative music writing that’s catnip for me, the kind of work that sends me deeply into my own memories, and leaves me rethinking my own take on the album in question. Read more…
Maria Bustillos | Longreads | September 2016 | 40 minutes (10,049 words)
In the first days of 2014, in her senior year at Oberlin and just a few days before the winter term she’d arranged to spend in France, my daughter Carmen’s legs went numb. First her feet got all tingly, then her ankles, calves, and knees. Over three days or so, the numbness crept up to the base of her rib cage, and then stopped. But it didn’t go away—a weird sensation all in her skin, almost as if the whole lower half of her body had been anesthetized. Shingles, the internist told us—really?—okay. The acupuncturist, too, told us he’d been seeing anomalous cases of shingles cropping up in younger people. Carmen seemed to get a little better, and off she went to Paris; the tingling and numbness subsided slowly over the next several weeks, just as we’d been told they would, and the episode faded from memory. But about a year later, they came back again: Not shingles, after all.
Carmen in a hospital bed, uncharacteristically quiet and gloomy, the dark jungle of her curls against slick, plasticky polyester pillowcases. IV steroids, and more and more tests. Legs pretty numb, still. From pregnancy onward, I imagine, most parents harbor a cold little drop of inward fear, even as each day passes peaceful and undisturbed, through birth and babyhood and all the playdates and sleepovers and math tests, rock shows and summer vacations; at any moment, perhaps, from out of nowhere, comes the pounce. Here it is, then. Multiple sclerosis: I didn’t know anything about it really, beyond calamity, wheelchairs, and Annette Funicello. Instant by instant I composed my face and steeled myself as best I could for… what?
For every cliché in the world, naturally. A soul-wracked family, just like the ones you’ll see every day on the Lifetime Channel and the evening news; a brave young person, scared and in trouble; you register a fleeting hope that things will work out for them, in fact or fiction, as you flick to the next station. Now it’s your turn, but you won’t be changing the channel. Can this thing be treated? What is it? How do I discover how bad this will get? Or maybe let me just jump out this motherfucking window this minute, because I’m going to die of the panic alone. Read more…
Earlier this year, on the occasion of the release of Approaching Ali: A Reclamation in Three Acts, Davis Miller’s second biography of Muhammad Ali, Financial Times political columnist Janan Ganesh considered the question of what made Ali such an appealing subject for so many writers. Read more…