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Friday, November 16, 2001
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Tribune Reduces Executive Compensation, Freezes Salaries
Tribune Company, publisher of the Chicago Tribune, announced
1,400 job cuts in June of this year and is now seeking to
find more ways to cut costs but without laying off additional
staff. Tribune Company
has announced a series of cost cutting measures related to
compensation, including:
- Approximately 140 senior managers across the company will take a
5% salary reduction, effective January 1, 2002. The group includes John
Madigan, chairman and chief executive officer, Dennis FitzSimons,
president and chief operating officer, Donald Grenesko, chief financial
officer and Jack Fuller, David Hiller and Pat Mullen, the presidents of
the company's three business groups.
- Effective January 1, 2002, the salaries of all Tribune employees not
covered by a collective bargaining agreement will be frozen for
12 months. These employees will be eligible for a special
one-time grant of Tribune stock options based on merit. The six
executives named above will not be eligible for this one-time stock
option grant. The company also will be seeking compensation cost
savings from union-represented groups.
- Cash bonuses for 2001 will be minimal and the six executives named
above will not receive bonuses for 2001.
- Hiring will be limited to critical functions; the goal is
to reduce staff through attrition.
``It's hard to remember when there has been a stronger need to
deliver quality news and information to our readers, listeners
and viewers,'' said John Madigan. ``At the same time the
advertising marketplace is under tremendous pressure. In light
of this, we are taking strong cost-cutting actions, over and
above what we already have done. However, we are adding an
important long-term incentive in the form of merit-based stock
options to recognize the important contributions of our employees.
By managing our businesses well, we are positioning Tribune to
come out of this downturn with industry-leading journalistic
and financial performance.''
In addition to reducing compensation, Tribune will further reduce
corporate expenses and all of the company's business units will
implement further cost-saving measures.
``During the last year we have realized operational cost-savings
throughout our business units, lowered capital spending, left
open positions unfilled and completed a voluntary retirement
program,'' said Dennis FitzSimons. ``Our people are among the
best, and they operate some of the strongest local media
franchises in the industry. We are facing the challenges of
the current environment head-on. We will cut costs and also
put greater emphasis on our ad sales efforts. Most importantly,
we will not compromise the quality of journalism that we have
always delivered to our readers, listeners and viewers.''
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