KEY POINTS:
Telecom's appointment of Saatchi & Saatchi global chief executive Kevin Roberts to its board of directors has raised eyebrows in the advertising world.
The adman - known as KR inside the Saatchi & Saatchi empire - is famous for his Love Marks and Sisimo truisms which, like those
from Saatchi competitors, are promoted as marketing genius.
But views on KR the man polarise opinions between those who love him and those who are dismissive. He has built the Kevin Roberts brand - inextricably tied to New Zealand - and knows the workings of global business.
Now Saatchi will be in a fine position with its global president on the board of its biggest client. Saatchi & Saatchi is one of Telecom's longest and largest suppliers and holds about 90 per cent of its advertising business.
It is understood Saatchi was paid about $50 million by Telecom last year though it's unclear how much was to pay for media.
Announcing the move, Telecom chairman Wayne Boyd said KR's appointment - replacing board member Patsy Reddy - "adds essential marketing, branding and customer satisfaction expertise".
NZ Shareholders Association chairman Bruce Sheppard said that KR - whose New Zealand office is based at the Saatchi & Saatchi offices in Parnell - is removed from the day-to-day business of Saatchi.
If he gained personally from the Telecom contract through Saatchi shares it would be infinitesimally small.
Boyd said the relationship with Saatchi was at a management level. In the unlikely event that reached the board, Roberts could declare an interest. But the fact is Saatchi now has a man inside Telecom.
Five to ten years ago, Saatchi & Saatchi work was pretty bad, due in large part to a malaise at Telecom.
Under new management over the past five years Saatchi advertising for Telecom has dramatically improved.
With its global president on the board, Saatchi will have plenty of early warning about trouble ahead.
KR VS TWO MARKS
Public relations company Sweeney Vesty must know something we don't about the board ructions at Telecom. Isn't the company in an odd position providing PR advice on nominations to the Telecom board?
This column noted recently that Sweeney Vesty was getting less work than it used to do under the Theresa Gattung days. But it handled the public relations for Elliott International - the US based "vulture fund" calling for radical restructuring of Telecom and which nominated Kiwi company directors Mark Tume and Mark Cross to the board.
Elliott is seeking shareholders to support the Two Marks, who, it seems, will face a vote at the October 2 board meeting against board-appointed Roberts.
Roberts - by the way - is Sweeney Vesty's very special client. Brian Sweeney who has played a key role in developing the Kevin Roberts brand. Sweeney Vesty would not take calls.
NINE TO GLOOM
Radio New Zealand is standing by its survey assessing the cumulative audience for National Radio, despite the fact that they are comparing different methodologies.
RNZ is claiming the results in its latest survey - comparing 2006 figures - show an increase in all shows. But it is understood that other figures dating back to June, while solid among most shows, was disappointing for the Nine To Noon show with Kathryn Ryan.
My sources say that RNZ - which recently appointed producer Allen Walley to work on the show, has become concerned with the tone and ratings for Nine To Noon. It is a subjective matter of course. But under Ryan, Nine To Noon had become rooted in "Ailment of the Day" with bleak schoolmarmish discourse and mini-lectures.
Walley carries high hopes for change, but RNZ insiders say Ryan is not known for taking advice and continues to dominate on air and off.
'REST IN PEACE'
Where did the Sunday Star Times and Herald on Sunday get information detailing the alleged incidents leading to charges against former TVNZ and Radio Sport presenter Tony Veitch?
Allegations released by Fairfax so far have pointed to an alleged serious incident in which Veitch's former partner Kristin Dunne Powell received injuries.
But the Sunday articles focused on one assault where Veitch is said to have been charged for throwing water at Dunne Powell. The reports had the effect of downplaying the scale of the alleged assaults and the source has been the subject of intense debate.
Police have insisted that they did not leak it. Veitch's public relations consultant Glenda Hughes - who appeared in a substantial article in the SST the previous week - was quoted by Radio New Zealand and NZPA as "denying" leaking. But Hughes said that she was misreported and said she had a policy of not discussing her communications with journalists. The Business Herald asked her again: Had she provided material detailing the case to Sunday journalists?
"Do we need to keep this going?" she asked. "Can't we let Tony rest in peace for a little while."
She said the issue was clearer now. "I am of the same view as everyone else. The situation now is in the right place," Hughes said.
SHAWN TAN AFFAIR
Engineering, Printing and Manufacturing Union (EPMU) president Andrew Little meets with union members in Auckland today amid concerns about the union handling of the Shawn Tan suspension.
Little - who is on the national council of the Labour Party and who toyed with standing for Labour - had said that Tan's political leanings would be a factor in deciding whether the union gave permission for him to stand as a candidate for the Act Party.
Tan's supporters say the Labour affiliated union is interfering in a fundamental right to stand for Parliament. It was a bad look for journalists, especially in the parliamentary press gallery.
The row is complicated by questions about the legality of the union requiring Tan to seek approval to stand. But it illustrates what Little acknowledges is a tension between the EPMU - working actively for re-election of Labour - and journalist members who are required to be independent but are pilloried for belonging to a Labour-affiliated union.
The EPMU insists that journalist membership fees are kept separate from calculations contributing to its affiliation payments to Labour and is changing rules for other members to define whether their membership is counted in contributions to Labour and the Greens.
But as the election season ramps up, journalists have to face criticism they are in an organisation that is on the frontline backing one party.
'FEW EDITORIAL CUTS'
Editorial staff are unlikely to comprise a large share of the 100 or so remaining layoffs at Fairfax New Zealand, the company chief executive Joan Withers says.
Fairfax announced this week that 30 per cent of the 550 job cuts across the group were in editorial and New Zealand made up 160 of them. Withers said the cuts were still being resolved.
But she said that around 60 were already gone - for projects like combining sub-editing for different newspaper sections across the group - and editorial made up far much less than 30 per cent of the remainder.
The EPMU's Little said that Dominion Post editor Tim Pankhurst had already indicated that there was little room for cuts to Fairfax editorial staffing. Little suggested they were likely to come from printing distribution and advertising.
