Young and Morgan wanted the creditors, who have taken control of Young Broadcasting during Chapter 11 proceedings, to honor their current three-year contract. But the creditors resisted, and on Thursday, Young and Morgan dropped their demands.
- The 2007 employment agreement that Vincent Young wanted the new owners to assume called for his annual base salary to be $1.4 million, and him to get a possible bonus of more than $2.8 million per year.
- A provision for payments helping to cover his tax obligations was included -- along with provisions that could provide millions of dollars more should he be terminated, while the company was required to cover all costs attached to a leased automobile.
- But the new owners favored a deal that emerged during the bankruptcy process that had Vincent Young's base salary at $840,000, while he could receive a $250,000 bonus should provisions be met involving the MyNetworkTV affiliate in San Francisco [KRON].
- There was also a clause for him to get a bonus of between $250,000 and $840,000 if the Chapter 11 reorganization closed by a certain date, but that did not kick in. CFO Morgan's 2007 deal that he wanted to continue called for a base salary of $671,000, and a bonus that could exceed $1 million annually, along with tax payments and a leased automobile.
- The lesser deal that the lenders preferred called for a base salary of $302,000 and no bonus.