According to a bankruptcy filing, top executives at Freedom Communications were paid million of dollars out of the company’s MBO bonus program.
The program paid out more than $3.7 million to Freedom’s top executives during the past year, including expenses such as partner distributions, automobile reimbursements, club memberships and, for at least one executive, housing allowances, according to federal bankruptcy filings.
At least 49 Freedom executives, including publishers at various newspapers across the country, dipped into the MBO bonus program during the 12 months leading up to the company’s bankruptcy filing in September.
Freedom CEO Scott Flanders received two MBO payments totaling more than $1.1 million during that time, including a $400,000 bonus only weeks before the company filed bankruptcy. Others, such as Orange County Register Publisher Terry Horne and Community Newspapers Division President Jonathan Segal, received bonuses totaling six-figures.
Other executives befiting from the program had their names published in the bankruptcy filing.
Source: AZ Capitol Times.