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Thursday, November 11, 2010

Five Tribune execs are out of the $40M bonus pool, says a bankruptcy judge

Those executives, including the CFO and Senior VP of Financial Operations, are the objects of potential claims resulting from the late-2007 buyout led by Sam Zell. They might be defendants, and therefore both the creditors committee and the U.S. Bankruptcy Trustee objected to their receiving 2010 bonuses until their status is resolved. The company at first resisted their exclusion and then agreed. The Chicago Tribune says that instead of having 640 Tribune staffers in the bonus pool that could be worth $40 million, there will be 635. Also: Former CEO Randy Michaels is still negotiating his exit package, and is not one of the 635 people included in this decision by a federal bankruptcy court judge in Delaware. It is unclear in Wednesday’s court decision what kind of bonus is due to what the Chicago Tribune calls “11 members of [Michaels'] team who also have departed the company” in recent days. That would include former Clear Channel programmer Marc Chase.

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