Wednesday, April 22, 2009

Chicago Tribune requesting bonus payouts

April 22, 2009

Well at least the Tribune is asking before it doles out cash. Severance pay - fine. “Discretionary incentive bonuses” are another matter. AIG’s were “retention bonuses” and 11 folks got a minimum of $1M after they had left the company - including one who received $4.6M.

From WGNTV:

Chicago Tribune parent Tribune Co. today filed motions in Delaware seeking U.S. Bankruptcy Court authorization to resume severance payments to individuals who left the media company before its Chapter 11 filing in December, as well as to pay discretionary incentive bonuses for 2008 to nearly 700 managers, directors and others, according to the Tribune’s Tower Ticker blog.

They’re asking for a more modest sum: $13M (compared to AIG’s grotesque $165M) and consider it “part of the would-be recipients’ annual compensation as part of the normal course of business.”

The proposal:

  • Top 10 executives would not get any of the money
  • The 700 would split $13M
  • Median bonus: $9500
  • Average $18K
  • 84% < $30K
  • 70% < $20K

Unfortunately, it’s not going to help the 53 people they let go today.

How many people could stay on if that $13M was used strictly for salary?

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AIG Timeline
Hardball: timeline of bonuses
Tim Geithner’s AIG Timeline

AIG $165M bonuses after $170B bailout
AIG bonus breakdown
Andrew Cuomo: $30M of AIG bonuses will be returned

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