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McLEAN, VA.: Craig Dubow, CEO of Gannett, took home a lot less money last year than he did in 2007, according to The Associated Press.

Dubow’s pay package was cut by 60 percent last year to $3.1 million, down from $7.9 million in 2007. AP’s calculation includes what it described as overstated values of restricted stock and stock options.

Gannett’s market value during the same period fell 79 percent; with impairment, the 2008 net loss reached $6.6 billion. The company cut 4,000 people from the payroll last year, and earlier this year imposed a one-week furlough without pay for the 31,000 left standing. It also cut its stock dividend, for the first time in 41 years, by 90 percent to save itself $325 million.

Moody’s has classified the company’s debt as “junk.”

The AP dissected Dubow’s pay: $1.17 million base pay in 2008, reduced from $1.2 million when he lowered it himself to $1 million in November. His bonus was $875,000, about half of what he originally was to receive. The one-week furlough is estimated to cost him $19,200. Dubow’s benes included a company car and corporate aircraft time, but his home security service reimbursement was cut to save money.

The story also noted how stock options are no longer worth anything because share price has dropped so far below Gannett’s exercise price. Shares of Gannett (NYSE:GCI) fell today to around $2.18, after opening on Monday at $2.14 and peaking Thursday at $2.26, reflecting a moment of enthusiasm in the wider market during the week.