KHON, KGMB facing 10 percent pay cuts

Advertiser Staff
and News Services

Emmis Communications Corp., owner of Hawai'i television stations KHON and KGMB, said it is cutting its employees' pay nationwide by 10 percent to reduce costs and is giving company stock to workers to make up the difference.

Bill Spellman, vice president and general manager for KHON, said about half of the station's 100 employees will have to take the pay cut, including most on-camera staff members.

Contract, union and some part-time employees are exempt from the cut, said Emmis spokeswoman Kate Healey. The pay cut will stay in effect for at least a year, Healey said.

Employees whose pay is cut will receive stock equal in value to the lost pay and can sell the shares immediately without brokers' fees or keep them, Spellman said. Emmis shares yesterday rose 11 cents to $15.53. The shares dropped 46 percent so far this year.

The pay cuts will take effect Nov. 26 and will enable the Indianapolis-based company, which owns 23 radio stations and 15 television stations nationwide, to improve cash flow.

Healey said the move was made necessary in part by a "softening ad market" that has led to cutbacks at many media companies.

"I'm very proud of the company," said Spellman. "Instead of eliminating employees, people are keeping their jobs."

Emmis is the latest media company to announce cost-cutting measures. Last week, the company that publishes the Hono-

lulu Star-Bulletin and MidWeek said it will lay off about 20 people and ask some employees to take voluntary pay cuts.