WILMINGTON, Del. (AP) — The Tribune Co. on Tuesday received authorization from a federal bankruptcy court judge to pay more than $13 million in bonuses to almost 700 employees for their work last year.
Judge Kevin Carey authorized the payments came after Tribune chief financial officer Chandler Bigelow III testified that the bonuses are critical to keeping key managers motivated as Tribune tries to adjust to a tough economic climate for media companies.
"We need to motivate and incentivize the key people who will implement change," Bigelow said. "These are really good people we're talking about. They're the best and the brightest of the company."
The judge was to hear arguments later Tuesday on Tribune's request to make $2.6 million in severance payments to 68 employees, all but two of whom were fired before Tribune filed for bankruptcy protection.
Bigelow noted that proposed bonus payments of $12.2 million to about 670 employees under the company's management incentive program, or MIP, do not include the top 10 executives and represent an average payment of only 38 percent of the target for 2008. He also said total proposed payments for last year are significantly lower than those in the two preceding years.
Tribune also received authorization to pay an additional $1.1 million in incentives to 23 individuals who do not participate in the MIP.
No comments:
Post a Comment