Tribune Co. has agreed to pay former CEO Randy Michaels a settlement of $675,000, plus $50,000 in legal fees, reports TheWrap.
Why exactly is he getting this money? Michaels resigned in October 2010 after a damning New York Times article made the place look like a madhouse.
But Michaels later claimed he was eligible for a bonus through the company’s “management incentive plan.” TheWrap: “The MIP says that one must be employed to collect the bonus, except in cases of death, disability, retirement and termination without cause. Michaels said he quit because he assumed he would be fired.”
Tribune decided to settle rather than fight it out.
The settlement still requires approval from a bankruptcy judge, as the company is still in bankruptcy.
Romenesko called up David Carr, who wrote the NYT story that started this whole thing off, to ask how he felt. Carr said: “I’m sure there are some expedient reasons that the TribCo chose to pay Mr. Michaels $675,000 and cover his legal fees, but it sends a clear, bad message to the women and men at the company who continue to do their jobs well in spite of the overhang of bankruptcy process that has gone on far too long.”