Tribune cuts back bonuses

Pressure from creditors and unions has prompted bankrupt Tribune Co. to cut back on the bonuses it would pay under a proposed management incentive plan.

In a filing in U.S. Bankruptcy Court in Delaware, Tribune raised its performance targets and trimmed the potential bonus payments for almost 700 operating managers. The company also raised performance targets for top executives, but the potential bonus payments remain the same.

Under the new plan, Tribune managers can earn $42.9 million in bonuses if the company generates $685 million in operating cash flow in 2010. At lower performance levels, the payouts would be reduced.

The filing indicates a committee of unsecured creditors and the Washington-Baltimore Newspaper Guild will support the new plan.

Tribune will seek approval of the new plan during an Aug. 9 hearing.