IR for Investors

[sludgehound]

CEO resume inflation gets $4.5M
[Others just get fired!]

What Degree?

R.H. Donnelley CEO has a degree of a problem.

Click the link below to read the full story:
http://www.forbes.com/2006/09/08/donnelley-swanson-college-cz_wpb_0908donnelley.html?partner=alerts

Careers
What Degree?
William P. Barrett, 09.08.06, 1:00 PM ET

David C. Swanson, chief executive of R.H. Donnelley, does not have the college degree attributed to him by company statements that were posted on its Web site, and by other references.

Tyler D. Gronbach, a spokesman for the Cary, N.C.-based yellow pages publisher, confirmed that Swanson dropped out of Minnesota's St. Cloud State University in the 1970s "a few credits" short of a degree for financial reasons and took a yellow pages sales job.

Two Donnelley press releases, including the Jan. 7, 2002, announcement of his impending promotion to chief executive, stated that Swanson holds a bachelor of science degree from St. Cloud. The claim was repeated in a 2004 trade publication profile and in a Web-posted bio for a directory trade group, the Yellow Pages Association, where Swanson serves as secretary-treasurer.

Following an inquiry by Forbes, Donnelley changed the language on the two press releases on its Web site to say that Swanson "attended St. Cloud University without earning a degree." A similar change was made on Swanson's bio on the trade association site.

Gronbach says Swanson wasn't responsible for the false claim, which the spokesman attributed in part to incorrect conclusions by contract publicists hired by Donnelley. He said Swanson's job application when he joined Donnelley as an account executive in 1985 does not cite a degree.

Gronbach said a draft of the 2002 press release mentioning the degree had been sent to Swanson before it was issued. "Mr. Swanson did see the release but didn't spot [the error]," the spokesman said. "That is regrettable."

He said that Swanson noticed the error immediately after that press release was issued--apparently, before he took control as chief executive--and informed the firm's general counsel, Robert J. Bush. According to Gronbach, it was decided that "no further communication was warranted," even to Donnelley's board. Gronbach said the board was told about the missing degree this week only after the company received an anonymous letter.

The letter, described as containing other unflattering comments about the style and business strategies of Swanson, was signed "a very concerned employee." The directory industry is undergoing consolidation, and Donnelley has had to reduce staff.

Shares of Donnelley, which in 1998 was spun off from Dun & Bradstreet, have risen 85% since Swanson took the top spot in May 2002. Swanson's compensation last year, including the value of exercised options, was $4.5 million.