• by Erik Sass  @eriksass1, October 7, 2011

The nation's largest newspaper publisher has new leadership: Craig Dubow has resigned as CEO of Gannett Co., citing health reasons. The top spot will be filled by Gannett president and chief operating officer Gracia Martore.

Dubow, 56, underwent back surgery in 2009, and had been on medical leave since September 15; according to the Gannett Blog, which tracks goings-on at the company. He was sometimes seen around Gannett corporate headquarters in a wheelchair or walking with crutches, suggesting continuing back problems.

Dubow stated: "For me, the decision to step down was difficult, but I must now focus on my health and my family." Because he is resigning due to disability, Gannett Blog notes he could receive as much as $37.1 million in retirement benefits -- compared to just $22.5 million if he was simply retiring.

According to the company, Martore joined Gannett in 1985; became chief financial officer in 2003; executive vice-president in 2006; and president and chief operating officer in 2010.

She stated: "We will continue our relentless quest to provide trusted news and information. ... We have the strategy, brands and talent to ensure that we fulfill our purpose for a long time to come."

Martore inherits the top spot at Gannett during a trying time for the company and the newspaper industry as a whole. Gannett's total revenues have shrunk 32.3% from $8.03 billion in 2006 to $5.44 billion in 2010, with a larger proportion coming from its TV division.

Revenues at the company's newspaper division have fallen more steeply, declining 43.6% from $7.18 billion in 2006 to $4.05 billion in 2010. Over the same period, a series of layoffs and buyouts have whittled Gannett's workforce from 49,675 employees at the end of 2006 to 32,600 at the end of 2010 -- shedding 34.4% over the course of five years.

The company's stock price has fallen from a high of $91 in 2004 to $10.42 at the time of writing.