Tribune Proposes Severance Plan For Top Execs If New Board Fires Them
July 30, 2010 at 4:20 PM (PT)
TRIBUNE CO. has proposed a severance plan for its top executives, including CEO RANDY MICHAELS and COO GERRY SPECTOR, in case a new board installed after the company reorganizes decides to fire them, reports the CHICAGO TRIBUNE.
Under the proposal, MICHAELS would get a severance of 2 1/2-times salary and bonus, and SPECTOR would get 2 1/4-times salary and bonus. They would also get 24 months' health coverage. Nine other executives would get 1 3/4-times salary and bonus plus 24 months of benefits, while 32 others would get 1 1/2-times salary and 18 months of benefits.
No price tag was attached to the plan, which will have to be approved by the lenders that will control the company after it emerges from bankruptcy. TRIBUNE executive pay has been an issue in the ongoing battle between creditors over the reorganization of the company.