Tony Ridder Sends 'Thank You'

After a wrenching few months, culminating in an agreement to sell the company he has led for so long, Knight Ridder CEO Tony Ridder sent a letter to employees on Blue Monday, along with a detailed FAQ.

Here is his letter, in part, and a large section of the FAQ courtesy of E&P:

Click on the headline to see it in E&P or just wait patiently by your mailbox..

"It has been a privilege to lead this company, as the CEO for the past 11 years, and as president for six years before that. I think all of us feel that Knight Ridder is special. Its heritage, its ethics, its values and its people command our affection and respect. We have believed in strong journalism and also in fairness and opportunity for all our employees, in service to our communities, readers and advertisers.

"The result has been newspapers and other print and online products in which we take great pride and about which our communities have felt good, created by people who are passionate in their mission. That is a very precious legacy. By your unstinting effort, we have made a vital contribution to our society. For that support, I want to thank you again.

"As we transition to new ownership, I am counting on all of you to give your work, and your relationships, that same investment of care and energy that have always characterized both. And I will do the same. Our newspapers remain central to the lives of their communities. Our Web sites and targeted publications will continue to grow rapidly, so long as they receive the same attention they have up until now. Your commitment now will guarantee the best possible outcome.

"After a thorough and thoughtful review of the strategic alternatives available, including much consultation with Knight Ridder's senior management, the Board has approved the proposed sale.

"The McClatchy sale is expected to close some time this summer. The closing will be subject to customary conditions, including shareholder approval. Until then, it will remain business as usual, with our longstanding emphasis on reader satisfaction and customer service. As the transition progresses, we will make every effort to keep you up to date.

"Recognizing that this announcement will create anxiety and curiosity about what happens next, we have prepared a list of questions and answers for you, which is attached.

"Let me take this opportunity to thank all of you once again, for your dedication, support and willingness to stay focused during what I know has been a challenging time. It is that commitment that has made Knight Ridder a great company.

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Q: How long will McClatchy's divestiture process take?
A: While there can be no certainty in matters like this, our best estimate is that the acquisition of Knight Ridder will close some time this summer, and the divestiture process will run concurrently. But it just isn't clear at this time how long that process will take.

Q: What will happen to me during this transition?
A: This newspaper's most valuable asset is our employees. We must stay focused on producing our newspapers, Web sites, community and other publications at the high standards for which we are known. We need to provide readers with superior editorial content; we need to provide readers and advertisers with superb customer service.

Q: What will be the impact of the transaction on staffing? Will there be any layoffs?
A: Unfortunately, now, as always, there are no guarantees. And, just as in the past, staffing decisions will be very much driven by the performance of this business, regardless of any change in ownership.

Q: Will there be changes in the way our local company operates?
A: During this period of transition, we will continue business as usual.

Q: When will I know specifically how I will be affected?
A: As we have said, we expect business as usual during the transition. While we don't have all the answers to all questions at this point, we will keep employees informed in as timely a fashion as we can.

Q: I am a member of a union; how is my contract affected?
A: We cannot address what will happen with any further transaction between McClatchy and another company.

Q: Will there be lay offs?
A: It is our understanding McClatchy is not planning across the board layoffs. Of course, we can not speak to decisions that may be made by a future acquirer.

Q: What happens to my health and welfare benefits after the transaction is complete?
A: We do not yet know how McClatchy intends to transition the health & welfare plans. However, we understand that McClatchy offers a comprehensive health plan for eligible employees and dependents. We can not predict what will happen after any sale by McClatchy.

Q: Does Knight Ridder stock continue to trade during the transition period.
A: Yes.

Q: Can I continue to participate in Knight Ridder's employee stock purchase plan?
A: Yes, during the transition period. However at the time of the close, the employee stock purchase plan will terminate. In connections with such termination, the final purchase period will end seven days prior to the close. You will be receiving information on this process in the coming days.

Q: Will I lose my vested pension benefit due to this transaction and the planned sale?
A: No. Any earned and vested pension benefit, by law, may not be taken away. You earn a benefit each year of service granted. The assets of Knight Ridder's pension are held in trust and will continue to be protected by the Pension Benefit Guaranty Corporation after this transaction. To find out more about your pension benefit, visit www.krern.com and follow the retirement links. You can review the plan and complete a benefit calculation.

Q: Will I continue to earn a pension benefit under the Knight Ridder Plan?
A: During the transition you will continue to earn benefits under the Knight Ridder Pension Plan. For those employees who transition to McClatchy, they also offer a defined benefit plan and we expect that they will continue to do so for all of the eligible employees. We can not predict what will happen after any sale by McClatchy.

401k Plan Benefits

Q: What happens to my 401k?

A: During the transition your 401k will continue as before and you are 100% vested in the amount you have contributed. After the transaction is complete, for those employees continuing with McClatchy, they also offer a 401(k) plan and we expect that they will continue to do so for all of the eligible employees. We can not predict what will happen after any sale by McClatchy.

Q: What happens to the Knight Ridder stock in my 401k account?

A: The Knight Ridder stock held in your 401(k) account will be exchanged for cash and stock at the time of the close like any other Knight Ridder share in the transaction. You will be receiving information on this process in coming days.