Ad Giant Reassures Shareholders: Saatchi & Saatchi...
From Times Staff and Wire Reports
Ad Giant Reassures Shareholders: Saatchi & Saatchi Co. took steps to reassure its shareholders that it was working to overcome its recent financial problems, announcing 30% salary cuts for its founders, Maurice and Charles Saatchi, naming two Americans to its board and saying it was close to selling its consulting businesses. The company has been battered by an expensive diversification into consulting during the mid-1980s, weak financial controls and a period of slow growth in the advertising industry. For its fiscal year ended Sept. 30, Saatchi had an after-tax loss of $94 million.
