Tuesday, December 18, 2007

A golden parachute worth forty million dollars (or so)

That's what Tribune's CEO Dennis FitzSimons will walk away with. From LAT

FitzSimons' [expected]resignation is not surprising, given the differences in his and Zell's management style. FitzSimons has established a highly bureaucratic and centralized management structure, and Zell is known for an entrepreneurial approach. Zell is expected to reduce corporate overhead by delegating more operational decisions to executives at individual business units.
FitzSimons had been instituting expense reductions across the company. But those actions created turmoil, especially at the newspapers. At The Times, two publishers and two editors resigned in opposition to staff and budget cuts ordered from Chicago headquarters. Similar turnover occurred at other newspapers in the chain.

No surprise. The price for working to make the Zell Deal happen.

Zell plans to change Tribune's corporate culture.

Also: Another casualty of the Tribune Co. buyout by Zell is the Tribune Entertainment division, which will soon be shuttered.

Meanwhile Tribune Co. will pay $15 million to the federal government to settle charges that its Long Island, N.Y., newspaper Newsday and New York Spanish-language paper Hoy misstated circulation in 2004. "Tribune was one of a handful of publishers to reveal erroneous circulation numbers in 2004, in a scandal that has cast doubt on the credibility of circulation figures, which are used to determine advertiser rates."

No comments: