Bankrupt Phila. Newspapers Denies That Paying Out $1.4 Million In Exec. Bonuses Was Mismanagement

returnoftheflyingpigscropped_1.jpgINQUIRER: The filing by Philadelphia Newspapers called the senior lenders’ ire over a $350,000 bonus paid to chief executive Brian P. Tierney a “red herring,” designed to capitalize on public outcry over bonuses at AIG and other companies funded by taxpayer money. The filing said Tierney’s bonus was paid out of a pre-established bonus pool of $1.5 million, of which $1.34 million was paid at the end of 2008 to 45 employees. The filing also said the pre-petition lenders had previously offered Tierney a management-incentive plan that would have paid him more to work for them and institute their plans. In a filing Friday, the steering committee for secured lenders objected to the company’s use of cash “to the extent these businesses continue to be managed solely by Tierney.” MORE

PREVIOUSLY: Inky/DN Big Wigs Were Paid $650,000 $1.34 Million In Bonuses As Papers Went Bankrupt

PREVIOUSLY: Inquirer/Daily News Go Bankrupt

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