Court OKs Tribune Bonuses; Stock Plan Deal Draws IRS Audit
May 13, 2009 at 5:14 AM (PT)
TRIBUNE CO. got some good news and bad news this week, with the good news being approval from Bankruptcy Judge KEVIN CAREY for the payment of over $13 million in bonuses to 693 employees, 670 under the company's Management Incentive Program. The bonus recipients, who do not include the top-10 company executives, are receiving an average amount of 38% of the target for last year.
The bad news involves the IRS auditing the deal under which the company's employee stock ownership plan purchased $250 million in company shares in APRIL, 2007. The audit, which was disclosed by a filing with the U.S Bankruptcy Court, is investigating whether the deal should have been treated as tax exempt or taxable, with an adverse decision potentially costing the company additional taxes.