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.