Jul 23, 2009

Bonuses for Tribune Co.

Tribune Co. has filed a motion in bankruptcy court asking for permission to pay between $21.5 million and $66.7 million in performance bonuses to about 700 managers. The amount includes $3.1 million for 9 of the company's top 10 executives, according to Phil Rosenthal at the Chicago Tribune.

Anticipating some blow back, Tribune Co. CEO Randy Michael and CAO Gerry Spector sent a memo to employees yesterday announcing the broad outlines for the bonus plan, adding that "Incentivizing employees is essential to Tribune’s future success." From the memo:
Importantly, this is a pay-for performance plan that pays nothing if our companywide and/or business unit operating goals are not met. The plan is more conservative than in past years in that it requires the company to meet its 2009 operating goals before recipients are eligible for any payout, instead of allowing for a smaller payout in the event of reduced operating performance. In fact, a full payout can only be achieved by significantly exceeding the company’s 2009 operating plan.
Tribune Co. filed for Chapter 11 bankruptcy in December 2008. The company's properties include the Chicago Tribune and the Los Angeles Times.

1 comment:

Anonymous said...

Ah, more greed from the corrupt individuals who run the newspaper industry (run it into the ground).
Haven't they already given themselves enough bonuses and raises? No wonder the industry is sinking, all the money goes into the pockets of the already wealthy. None of it goes toward trying to improve the product. Good riddance to the print industry, if the greedy corporate executives who focused more on lining their pockets continue to undeservedly inflate their bank accounts.