Times Shareholders Show Their Concern

After weeks of heightened speculation, the New York Times Company's standoff with a group of dissident shareholders deepened this morning at the company's 2007 Annual Shareholder Meeting.

Following presentations by Chairman Arthur Sulzberger and C.E.O. Janet Robinson, a total of 42 percent of the company's shareholders withheld votes for the 2007 slate of board nominees, exceeding the 30 percent of shareholders that withheld votes at last year's meeting.

The number of withholds jumped by a troubling 40 percent, and signifies a new and challenging turn in the Times Company's proxy battle that is being led by Hassan Elmasry of Morgan Stanley Investment Management.

In a statement released after the meeting, Chairman Arthur Sulzberger Jr. said: "We understand shareholder frustration as reflected in today's vote. At the same time, many shareholders have expressed to us that we are pursuing the key actions needed to improve performance and returns to shareholders. ... Management and the full Board will continue to listen carefully to the issues raised by our shareholders."

Sulzberger remained defiant, however, in regards to Elmasry's public questioning of the Sulzberger family's control of the Times Company through the family's Class B preferred stock. "[T]he Ochs-Sulzberger family remains firmly and unanimously committed to the dual class share structure that has been in place since before the Company went public in 1969."

While dissidents like Elmasry and Private Capital Management's Bruce Sherman were not present at this morning's meeting, antagonist shareholders did confront Sulzberger before he could open the proceedings at the New Amsterdam Theater on West 42nd Street. Evelyn Davis, a perennial attendee, berated Sulzberger and demanded that she receive a hearing aide before the meeting began.

"Evelyn! Evelyn!" Sulzberger interjected before turning back to his speech. Davis continued her rebuke during the audience Q&A, when she asked Sulzberger about the size of the Times Company's legal bills. "Lawyers are like taxi drivers!" she trilled, "they run up the meter without ever taking you to your destination!"

by Gabriel Sherman