Deals/Expansions: Another day, another firm announces that it’s moving deeper into healthcare PR. Today’s firm is Russo Partners, LLC, but its announcement has a twist. Russo is formally inaugurating what it calls its Sports-Health Alliance. The Alliance will leverage the agency’s ties to athletes and other sports types who have a penchant for a disease or cause and are advocates for healthy lifestyles. The sporting crowd will be paired with Russo’s health and medical clients. Former NFL player and broadcaster Solomon Wilcots will lead the Alliance. – Boston-based Castle Group expanded southward, opening an office in Atlanta. Philip Hauserman will head the office. – Also in Atlanta, ARPR relocated its headquarters to 2,300 square feet in Ponce City Market, the hip, mixed-use space in the 90-year-old Sears building.
Profits: For a fourth consecutive year, Canadian PR firms’ profits topped those of U.S. agencies in the annual benchmarking survey of 101 U.S. and Canadian firms from Gould+Partners. Average profits of all surveyed firms in 2016 were “a paltry” 15.2%, down slightly from 15.3% in 2015 and 16.2% in 2014. The eight Canadian firms surveyed averaged 23.4%. The survey’s best performers had an average operating profit of 20%+, partly due to holding “professional staff salaries to less than 40% of net revenue, total labor cost at 50% and operating expenses at around 25%,” says Rick Gould, managing partner. “This should be the goal for all firms.” Decreases in operating profit were “totally attributable to an increase in labor cost without a corresponding increase in fees,” he says.
Uber: There’s so much going on at Uber, it’s tough to keep track. One of the week’s highlights was the Perkins Coie LLP investigation into 215 employees accused of harassment. It resulted in: roughly 100 employees getting their claims dismissed; 57 still being investigated; 31 placed in training or counseling; 20 fired; and 7 receiving written warnings. Former attorney general Eric Holder is leading a separate investigation for Uber focusing on sexual discrimination issues former engineer Susan Fowler leveled in a celebrated February blog post. The findings of Holder’s report are expected to be made public Tuesday, although media reports have Uber’s board agreeing to all Holder’s findings, including having CEO Travis Kalanick step down temporarily. Meanwhile one of the first incidents that besmirched Uber’s reputation returned to the headlines. In 2014 an Uber driver in India was accused of raping a female passenger. When it was learned the driver had been detained on suspicion of rape years earlier, Uber was blasted for poorly vetting drivers. The woman and Uber settled a suit out of court. The driver was convicted of rape. Now unconfirmed reports say Uber’s Asia business chief Eric Alexander was fired June 6 after it was learned he had obtained the woman’s medical records during the incident. Alexander allegedly discussed the records with Uber boss Kalanickand SVP of business Emil Michael. At our press time unconfirmed reports have Michael being fired. Hired last week to explain all this is former Apple Music exec Bozoma Saint John, Uber’s chief brand officer, a new position. We admire her candor: “I know what I’m walking into…it’s a really exciting time to tell the story well,” she tells Recode.
People: rbb Communications named former Johnson & Johnson medical devices global communications chief Sri Ramaswami EVP, global and emerging markets, healthcare. He’s tasked with expanding rbb’s healthcare and corporate practices here and abroad. – Weber Shandwick named Pam Jenkins, 10-year president of its D.C. public affairs unit Powell Tate, president of its global affairs practice. She replaces Ranny Cooper, who is cutting back to consultant status after 24 years at Weber. Paul Massey, Weber’s global social impact practice leader will replace Jenkins as president of Powell Tate. Managing director of public affairs at Powell Tate Pete Carson will add head of public affairs for Weber Shandwick in North America to his role. – Peppercomm bolstered its digital business with a trio of senior personnel moves. It hired Steve King as senior director, digital strategy and Mitch Bombardier as art director and promoted Caleb Freeman to director, customer experience. – Paramount Pictures named veteran Hollywood PR pro Chris Petrikin VP, global communications and branding, a new position. Petrikin was CCO at 20th Century Fox. – Orca Communications named Drew Stevens CEO. Stevens (picture 2, page 1) is the author of 14 books and numerous articles and blog posts. – Kudos to Chris Poynter, (picture 3, page 1) director of communications for the mayor of Louisville, KY, who will be honored later this week as the National Association of Government Communicators’ 2017 communicator of the year. In June ’16, Poynter’s team led a weeklong celebration of native son Muhammad Ali just after the boxer’s death. Its social media earned global recognition.