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The New York Times Co. paid Arthur Sulzberger a salary and bonus of $1.6 million in 2005, but don't think that means things are flush on 43rd Street. Quite the contrary: AME Bill Schmidt put out a memo this morning reminding employees of the current "period of financial angst" and all the ways everyone can cut back to make sure the paper makes it through. So remember, all you rank-and-file reporters and editors: Take a layover for a cheaper airfare. Brown-bag your departmental lunches. Share your newspaper and magazine subscriptions. And, for the love of God, never ever direct-dial a call from a hotel room. There is, however, one bit of good news in all this. If you cannot find a cab, or if you're coming from a place where a yellow cab to the airport would cost a fortune, car services are once again acceptable. Hurrah!

The full memo is after the jump. (And we're hearing word of another one regarding cell-phone reimbursements. Times folks: A little help?)

From: Bill Schmidt
Date: Mar 22, 2006 10:33 AM
Subject: UPDATED MEMO ON EXPENSES AND SPENDING
To: newsroom@nytimes.com

To the staff

A few months ago, I sent a memo to the newsroom outlining some ways we needed to work together to reduce discretionary spending and better control costs during a period of financial angst for our company and our industry. What I am gratified to say is that you have all responded admirably, and your spirit of cooperation — not to mention your creativity — has contributed to some real savings and efficiencies over the past few months.

On behalf of Bill and Jill and John — and on behalf as well of our colleagues on the business side who are doing everything they can to find new ways to leverage our journalism and drive revenues — I want to thank each of you for your spirit of sacrifice and your teamwork.

But if you heard Arthur's recent speech on the state of The Times, or followed the news last week about the fate of Knight-Ridder, you also know that the financial challenges confronting us have not eased. Circulation and advertising revenue remain under pressure, along with our bottom line. For those of us in the newsroom, this reality poses a continuing question: what can we do to sustain the quality journalism that defines our great newspaper during a time of tighter budgets and constrained resources?

In recent months, you have provided some of the answers to that question. You not only help us turn out world-class newspapers, day in and day out, but along the way you have become increasingly disciplined in the way you spend the dollars we do have. Entertainment costs are down, and so is travel spending, as many of you have gone to the Internet to shop for less expensive airfares. Some departments trimmed subscription costs by simply reviewing their lists and cutting out duplication. A few of you came up with original ideas of your own, like purchasing prepaid phone cards on the road as a way to eliminate or reduce high hotel phone charges in those places where your cell phone does not work so well. Another of you even suggested trying Web sites like betterbidding.com to forage for sharp discounts on hotel rooms. And partly in response to your suggestions, we are also taking a closer look at new technologies, like Voice over IP, which is basically telephoning over the Internet.

A number of you smartly challenged some of the guidelines that were in my original memo. Several pointed out that our injunction against the use of car services — and in favor of yellow taxis for getting to and from the airport — was wrong-footed. If you live in the suburbs or the boroughs, you said, car services are both more efficient and cheaper. Even in parts of Manhattan, finding a taxi at certain times of the day can be impossible. So we agree, and we retract our counsel. If you think you can save money — or if you have no other transportation alternative where you live — you may of course use a car service. To paraphrase one e-mail I got, I understand that you are not talking about stretch limos here; you are talking about companies that can get you to and from the airport quickly and at a reasonable cost.

The larger point is, we are not out of the woods yet. So as we continue to navigate this uncertain landscape, let me share with you once again my memo of last November, with its tips and guidelines (in some cases, revised or amended) on ways to spend our dollars more wisely. And as we noted when we first broadcast this message, please read it carefully: there are some specific expenses that we will no longer reimburse without prior approval from News Admin.

TRAVEL
Employees traveling on business are encouraged to use the Expedia or American Express Travel Web sites to book flights and hotels. There are links to both Web sites on the left side of the Navigator page, along with some handy travel tips. The cost of tickets you book on these sites is billed centrally, so you don't have to lay out any of your own cash and then seek reimbursement.

The Expedia site in particular is nearly identical to the public site, and includes special Times air and hotel discounts. You will need to open an account to access the sites; please get in touch with Suzi Opitz or Amy Chapman at the Shared Services Center. Suzi's e-mail is xxxx@nytssc.com and her phone is (757) 628-XXXX; Amy's is xxxx@nytssc.com and her phone is (757) 628-XXXX.

Whenever possible, book flights well in advance, and - if you have the time - comparison shop for the best rate. You can often do even better price-wise by using discount Web sites like Kayak or Travelzoo (they are on the Navigator page as well ) or by going directly to the Web sites of airlines like Jet Blue or Southwest.

If you need to talk directly with agents at American Express or Garber Travel, you may of course do so. But please avoid calling them outside of their normal business hours — 8:30 a.m. to 6:30 p.m., Eastern time — to book discretionary or nondeadline travel. We are billed a surcharge for every phone call they handle outside those hours. Use them after-hours only if you are on deadline or must deal with a travel emergency.

In booking air travel, please remember you can often reduce your airfare if you are able or willing to take a one-stop flight rather than a nonstop, or are flexible in the airport you use in the Manhattan area. A flight from Newark to Miami, for example, might be less than a flight from LaGuardia to Miami. And remember, coach travel only.

When traveling, do not make direct dial calls from your hotel room telephone. Most hotels add very hefty service charges to these calls. Use your cellphone or your company calling card, if you have one, or purchase a prepaid phone card.

Finally, a reminder to department and section heads. As you know, we maintain an inventory of furnished corporate apartments, near The Times. If you are bringing in a job candidate, or if you have an out-of-town correspondent visiting Gotham, please check first with Barbara Baumgarten (xXXXX) before you book a hotel, since we may have an apartment available.

ENTERTAINMENT

As a general rule, the newsroom will no longer subsidize or reimburse:

* Business meals or drinks involving only your fellow Times colleagues. In other words, we will no longer absorb the costs of taking one another out for drinks, lunch or dinner. Exceptions will be made on a limited basis an editor taking out a reporter, say, to discuss a transfer or a promotion — and only if the host can persuade us that the outing was vital to company business that could not otherwise be conducted in the newsroom. Otherwise, these expenses will be disallowed.

* The cost of food deliveries within the newsroom for departmental or staff meetings, without written approval — in advance — from News Administration. That means we will no longer routinely sign off on departments charging to their P-cards or to the newspaper the cost of bagel runs, catered luncheons or any other group meals for their staff, whether the department is ordering from outside caterers and restaurants, or the cafeteria on the 11th floor. If a department is having a luncheon meeting, for example, editors should encourage participants to brown bag, bring down their own food from the cafeteria or share the cost of outside delivery.

Staffers traveling on business should adhere to the following guidelines for individual meals: $25 for lunch and under $40 for dinner. Remember that receipts are necessary for any expenditure exceeding $25. In Manhattan, those numbers are probably on the low end of the range, but they are nonetheless useful as guidelines. If you are spending more than $30 a person on lunch, you are spending too much.

PARTIES AND OTHER FETES

If any department head or manager is contemplating any sort of party or gathering to celebrate a moment — a promotion, a retirement, an award — please talk in advance to News Admin. In general, we will not reimburse the cost of such events, but depending on the circumstances, we might be willing to offer some sort of limited subsidy. But only if we've agreed in advance.

OFFICE SUPPLIES, EQUIPMENT, SUBSCRIPTIONS AND SOFTWARE

Absent a specific written approval in advance, The Times will not reimburse individual employees for the purchase of software, communications or computer equipment or office supplies for use at home or in the office. Please talk to your desk administrator, News Admin or News Technology if you are contemplating such purchases.

The Times does not currently reimburse the purchase of Blackberrys or other PDA's, or the monthly service fees to support such devices. This is partly because such devices are currently unable to support the newsroom e-mail system. A group in News Admin and News Technology will soon be issuing a new policy intended to provide greater wireless connectivity to those reporters who require it as part of their job. At that time, we will amend our policies on these devices. But we are not quite there yet. Editors should get in touch with Jennifer Preston or Terry Schwadron if they have questions or if they want to make a specific case on behalf of a member of their staff.

Wherever possible, department and section heads should ask editors to share magazine and newspaper subscriptions. We will be reviewing subscription accounts desk by desk in the coming months, with an eye to reducing the number of publications coming into the building. Also, whenever possible, desk administrators should use Ebsco for all subscriptions; they are a fraction of the cost we pay to the news dealer. Subscriptions should not be ordered through a P-card. Any subscriptions on P-cards will be disallowed, unless there has been some prior discussion with Bernie Espina or one of her associates.

In order for a staff member to be reimbursed for newspaper or magazine subscriptions, the subscriptions must be ordered through the desk administrator. Subscriptions and book purchases that appear on individual XMS expense filings will be disallowed, unless there is a note from the department or section head justifying the purchase.

COURIERS AND MESSENGERS

Courier and messenger services should be used only when there is a demonstrated need that speed is critical. Even then, desks and individuals should be mindful that FedEx, for example, offers several delivery options, at different prices. If two-day delivery is sufficient, please use it. It is much cheaper.

GIFTS AND FLOWERS

It is appropriate for a department manager to send a staff member a modest floral arrangement, on the company tab, as a gesture of condolence or congratulation. But we should not be using company money to purchase gifts, under any circumstances. In such instances, we suggest you take up a collection and share the cost of the gift among your colleagues.

FILING EXPENSES

For many years, we have had a policy that requires all domestic expenses to be filed within 60 days. Each month, in fact, we send out a notice to the newsroom reminding people about the deadlines. When times are tough, as they are now, it is especially important that expenses be filed on a timely basis. First of all, it's your money. The sooner you put your expenses into XMS and file them, the sooner you get your dollars back. But we also need to be able to track our costs when they occur. When a big batch of expenses comes in late, and hits our bottom line, it can throw off our budgeting and forecasting. For that reason, moving forward, we are going to be less inclined to grant exceptions, absent some extraordinary explanation.

Updated on March 20, 2006