Posted by Bud on January 28, 2010 at 07:25:27:
Chicago-based media giant, Tribune Company, which owns the Chicago Tribune and Los Angeles Times, WGN Radio, WGN-TV, WGN America and over 20 other television stations nationwide, had a victory in court today. The company, despite being in bankruptcy, was given permission to pay around $45,000,000 in bonuses to 720 Tribune managers, when a judge overruled the many objections from union groups and a newspaper guild this morning. The $45 million is the largest such bonus payment in over a dozen years. The bonuses begin to be paid out in February.
Judge Kevin Carey sided with the Tribune Company's argument that the bonuses enhanced the company's chance of survival by making its managers happy.
The Washington-Baltimore Newspaper Guild, who opposed the bonuses, pointed out that this payout equals roughly 10 percent of the Tribune Company's operating cash flow. That would make this bonus payout three times larger than the 1997 bonus pool, which is the next largest in terms of operating cash flow over the past 12 years. The Guild also pointed out that Tribune Company had frozen salaries for most of its employees that had not been laid off so they could "share the sacrifice."
The Tribune is still waiting the judge's decision on another two bonus programs, worth up to about $20 million combined, that would additionally reward the performance of their top 40 executives. Judge Carey said at today's hearing that his decision on the two other programs would "remain in the queue" for the time being and suggested they might be rolled into a new Tribune reorganization plan.