Tribune agrees to settle incentive award dispute with former CEO

By Lisa Kerner

Charlotte, N.C., Nov. 22 - Tribune Co. asked the court to approve and settle the post-petition claims of former Tribune president, chief executive officer and board member Randy Michaels (a/k/a Benjamin Homel) regarding payment of a bonus under the company's 2010 management incentive plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is set for Dec. 13.

Based on Michaels' resignation date of Oct. 22, 2010, if eligible to receive payment for termination without cause, his pro-rated award would be about $900,000, the filing said.

Michaels, who became president and CEO in December 2009, said his resignation was involuntary and is equivalent to termination without cause.

While Tribune believes it can defend against the former CEO's claims, it is willing to settle in the amount of $675,000 plus payment of Michaels' attorneys' fees up to $50,000.

The settlement gives Tribune additional rights and benefits such as intellectual property and nondisparagement clauses. Michaels is not currently under any confidentiality, employment or similar agreements with Tribune.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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