Arbitron: Skarzynski Lied To Congress
January 12, 2010: Arbitron in a conference call with analysts and investors this morning gave the reason for the abrupt resignation of President/CEO Michael Skarzynski: At a December hearing on the PPM and minority broadcasting by the House Committee on Oversight and Government Reform, Skarzynski testified that he personally participated in a November 9 training visit to PPM panelists along with other Arbitron personnel. Arbitron CFO Sean Creamer said Tuesday, "This testimony was erroneous."
Creamer said Arbitron notified House Oversight Chairman Ed Towns (D-NY) of the incorrect testimony and continued, "Arbitron sincerely regrets the misstatement and has requested that the committee correct the record in connection with its official transcript of the hearing. Honesty and integrity are the cornerstones of Arbitron's values, and we take any any acts inconsistent with these values very seriously. Accordingly, Michael submitted his resignation."
Towns said in a statement late yesterday that the Oversight Committee "will review this matter to determine whether the committee was intentionally misled and whether further action is warranted."
Kerr Steps In
Creamer then introduced new President/CEO Bill Kerr, who takes over from Skarzynski effective immediately.
Kerr, a former CEO of Meredith Corp. who now chairs Meredith's board and a current member of the Arbitron board, said he is "honored" by his appointment to head Arbitron.
He said, "This is is an important time in the company's history, and I hope that my experience and background will prove both relevant and valuable to the company and its shareholders."
Kerr gave four points that he said will be his initial focus: bringing Arbitron through the transition in leadership, moving forward on the PPM commercialization, working with the staff on refining the company's long-range strategy, and building a long-term management structure "that will drive and support the growth and expansion of our company."
Kerr is leaving some of his other business activities and has asked Meredith's board to find his replacement as chairman; he said, "I now intend to focus my energy and attention on Arbitron."
Is It Over?
Asked about potential repercussions for Arbitron from Skarzynski's wrong testimony, Creamer said, "I would say we have done what we believe is appropriate to do. We raised it, we brought it to [the Oversight Committee's] attention, and we're working with them to correct the record." He said there is no indication that there will be any action against Arbitron.
Kerr added that when the matter came to the attention of the company and its board, they "acted in exemplary fashion in terms of dealing with it quickly and forthrightly," and said he "would hope that that would lead to no exposure to the company."
Asked if they were aware of other "issues" with Skarzynski, Creamer said, "We certainly believe that this is it, and we are moving forward from here." Kerr added that the board raised the same question and said that, "with a fairly exhaustive effort, we have found nothing beyond this situation to cause concern."
Additionally, in response to an analyst's question on whether there was any connection between Skarzynski's departure and the Media Rating Council's denial of accreditation to the Portable People Meter in 18 markets yesterday, Creamer said simply, "No."
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