December 10, 2008

News flash: There are people in publishing making $50,000

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News of more budget-tightening at another of the big boys: Macmillan, the conglomerate that owns Farrar, Strauss & Giroux, Picador and St. Martin’s, annnounced yesterday that it wasn’t laying anybody off yet (unlike Simon & Schuster, Houghton Mifflin Harcourt, and Random House), but it was instituting a wage freeze yesterday “for everyone making over $50,000.” In a memo to employees (available in its entirety, courtesy of Gawker, here), CEO John Sargent said the company would also maintain its 401 K contributions and medical plan, but that bonus plans “all are sensitive to individual company profitability and individual performance.” Saying “I will stay in touch on a more frequent basis,” Sargent closed by saying, “I know it is a bit jarring at the end of a memo like this one, but it should not go unsaid. I hope you and yours have a happy and healthy holiday season and thanks for all your efforts this year.”

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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