Tribune Co Asks Bankruptcy Court For Permission To Pay Bonuses

On Wednesday the LA Times’ parent company Tribune Co. has filed a request with the bankruptcy court to pay millions of dollars in bonuses to managers and other “key employees.” Phil Rosenthal reports for the Chicago Tribune:

If Tribune Co. and its various units meet their cash flow targets for this year, the total bonus payouts would be at least $21.5 million with a cap of around $66.7 million if those goals are greatly exceeded, documents showed.

Additionally, Tribune Co. asked to pay nine of its top 10 executives $3.1 million in belated 2008 bonuses. Those incentive payments were deferred this spring when Tribune Co. sought court approval for last year’s performance bonuses to expedite the process. Sam Zell, the company’s chairman and chief executive, is not part of the group of 10.

“There can be no serious debate about whether the top 10 executives have earned their 2008 [Management Incentive Plan] awards,” the motion says.

Tribune Co. filed for Chapter 11 protection in December because it was struggling to manage the heavy debt it took on in going private a year earlier.

Found via Editor & Publisher