Greco is Gonzo; The DMA Searching for New Leadership

In a move that should surprise no one in the direct and interactive marketing spaces, John A. Greco, Jr. has resigned his post as President and CEO of The DMA.

From The DMA News Release:

New York, NY, January 19, 2010 — The Direct Marketing Association (DMA) the leading global trade association of businesses and nonprofit multichannel direct marketers, today announced they will begin a search for a new President & CEO to replace John A. Greco, Jr. Mr. Greco has resigned his role effective today and DMA has organized a search committee to identify possible candidates.

…

“As we enter into the new decade and are anticipating an economic resurgence, it’s more important than ever to ensure that both traditional and digital multichannel direct marketing is at the forefront of that recovery,” said Eugene Raitt, Chairman of the DMA Board of Directors. “Bringing in new leadership to the management team focusing on the areas we intend to grow will be part of that process. The committee will conduct an aggressive search and I’m confident that we will find an exceptionally qualified individual to fulfill the DMA’s vision and goals.”

He continued, “DMA has committed to further developing the power of multichannel direct marketing for advertisers and consumers in the digital age. By continuing to develop strategies, content and thought-leadership, digital marketing principles will be fused throughout DMA; enabling us to grow membership, expand partnerships, enhance the Organization’s role within digital marketing and produce advanced thinking and educational programs worldwide.”

“We are grateful for John’s able service and dedication to the Direct Marketing Association over the past five years. We wish him much success with his future endeavors,” concluded Raitt.

To paraphrase the late President Gerald R. Ford, “The long national nightmare is over.”

Greco’s tenure was certainly controversial; while staging several rounds of severe staff layoffs, he raked in a total compensation package rumored to be worth nearly $1 million per year.

In October, at the onset of the DMA09 conference and exhibit held in San Diego, California, the Executive Board agreed to expand to include voting and non-voting seats for “reform bloc” candidates. Further, it agreed to form a By-Laws Committee to review the association’s governing laws and procedures. And, perhaps most important, it created a Compensation Committee to review and set management executive compensation parameters, that as Reform Bloc leader and current Board Member Gerry Pike indicated at the time, “would bring salary expectations in line with reality.”

And with that, Greco’s days running The DMA were numbered.

We wish Board Chair Gene Raitt and his executive committee well as they transition to new leadership. This industry will need all The DMA can muster.

Who is Gerry Pike? And Why is He Making The DMA Leadership Nervous?

Cross-posted to Sturdy Roots Blog:

Gerry Pike is a long time member of The Direct Marketing Association. The DMA is one of the-largest associations of marketing professionals in the world. And Pike is a current member of the group’s Board of Directors.

Like many of us who have enjoyed a long association with The DMA, Pike has grown wary.

And now, in the run up to DMA 09, the group’s annual convention and exhibit being held next week in San Diego, Calif., Pike is waging a proxy-battle.

From Pike’s email:

From: Gerry Pike, DMA Board Director

To: Dan Smolen, Dan Smolen Direct Search, LLC

www.aBetterDMA.org

Dan, your DMA colleagues have sent in their Proxy. Have you?

Dear Dan,

Many, many of our member colleagues like you have responded to my dialogue on the power of our voting proxy to bring much needed change to the DMA. Frequently I’ve been told:

That DMA has been on auto pilot for years.

That Management is just phoning it in and focusing on protecting their outsized salaries and perks – at our expense (read this) – while organizations like OMMA, AdTech, Shop.org, to name a few, have gained momentum and relevance at our cost. Read this.

That, “some things never change” so we can’t get a better DMA.

Frankly, I must accept the truth of what they say. But I won’t accept that things will never change.

Innovation, ingenuity and integrity will keep our Association out front. Our members have that in spades. What’s required for change is Management that mirrors membership. That understands it leads by following our Bylaws. That instead of telling members what to do, asks what they want done.

Here’s how giving your Proxy Vote to me will get you a members-first management again.

I will use your proxy vote to influence the management of the DMA through its Board of Directors to refocus DMA to serve its membership – i.e. you and me, first and always – and in doing so:

Bring back the Operations Councils which for so long served as the open door for DMA members to roll up their sleeves and have a hands-on involvement with their Association.

Take Management compensation that comes out of the backroom and put it back into the Boardroom, where it’s supposed to be, in order to get it in line with industry standards.

Bring value back as a benefit of DMA membership by grinding down budget-buster dues and conference fees.

If you want change NOW, act NOW! DMA’s Annual Business Meeting is just 9 days away.

USE THIS LINK to download your proxy. Sign, date and send it to me, Gerry Pike, by fax to: +1 (570) 676-5146 or scan and email to: gpike@DMSAinc.com.

Sincerely,

Gerry Pike
+1 (201) 888-9281
gpike@dmsainc.com

www.aBetterDMA.org

Read the latest media coverage & industry news on the situation.

Dan, learn how you can change your proxy, even if you have already sent it in.

In my 20+ year association with The DMA, I never ever recall a single proxy-battle. That is, until now.

I share Gerry Pike’s belief that The DMA has lost touch with its members, many of whom are fighting to stay in business or to keep a job.

Because consumers have cut back so much on their discretionary spending, this (recession) has hit the ranks of the direct marketing community especially hard. And whereas the national unemployment rate kisses 10 percent, I believe that the (real) unemployment rate amongst direct marketers may be 15 or 20 percent.

Meantime, in the past 18 months The DMA slashed headcount while boosting the compensation paid to its leader, John Greco, to nearly $1 million.

What gives?

Seriously…WHAT GIVES?

This organization which prides itself on representing 10 percent of the U.S.’s gross domestic product has done little to transition its members from traditional direct marketing to interactive marketing. And as Pike writes above, “OMMA, AdTech, Shop.org, to name a few, have gained momentum and relevance at our cost.”

This past Thursday, I received a telemarketing call sponsored by The DMA. Despite correcting the phone rep repeatedly, she mispronounced my name several times (Mr. Somlen) and urged me to support The DMA’s slate of candidates by sending my proxy back to The DMA.

It was too late for The DMA; earlier last week, I sent Gerry Pike my proxy for a Better DMA.

If you have not done so already, I urge you to do the same. Send your proxy to Gerry Pike. It’s easy to do – just follow the links in the letter, above.

And keep a good thought that The DMA may once again be a force in – and not the farce of – the direct marketing industry.