A Tribune memo says the company will make a 1.5 percent profit-sharing allocation to the 401(k) accounts of eligible employees in February 2011. Also, the memo adds, company leaders will begin holding town-hall style meetings with employees in early 2011.
From: Tribune Communications
Sent: Monday, December 20, 2010 11:14 AM
Subject: Message from Nils, Don, Tony and Eddy/2010 Profit Sharing Contribution
As 2010 comes to a close, we want to take a moment to thank you for your hard work, effort and dedication throughout the year. Your focus on innovation, results and contributions to improve our company have made a huge difference.
In spite of a challenging economy, an increasingly competitive advertising environment, and a noisy bankruptcy process, our financial results this year have been very strong. We’re projecting the company will generate more than $600 million in consolidated operating cash flow in 2010—up about 27% from 2009. And when the company succeeds, Tribune employees benefit financially, as well.
Under our 401(k) Savings Plan, if Tribune exceeds certain financial targets, the company may award a discretionary profit-sharing allocation to eligible employees. We’re pleased to tell you that based on our estimated 2010 year-end results, the company will make a 1.5% profit-sharing allocation to the 401(k) accounts of eligible employees in February 2011.
The allocation amount is based on your base pay and commissions paid through December 31, 2010. You must be employed on the last day of the year in order to receive it. The profit-sharing allocation vests in two years, and past service counts towards that requirement.
The allocation will be made to the funds you’ve designated for any matching contributions you receive from the company to the 401(k) Savings Plan (if applicable). If you do not contribute to the 401(k) or have not designated a fund, the profit sharing allocation will be invested in the Vanguard Target Retirement Fund closest to the year in which you turn age 65.
This is one way of recognizing the work of employees across Tribune and reinforces what can be accomplished when we work together as one company. Your input, your ideas, your creativity and your energy are critical to our long-term success.
We also believe that two-way communication is important. In early 2011, we will begin holding town-hall style meetings with employees at our various business units. We’ll do as many as possible in person, but because of time and travel constraints, we’ll conduct some via satellite hook-up. These meetings will give us a chance to speak with you directly and take your questions. We’re working on a schedule now.
We’re closing out a strong year; thank you again for making 2010 a success. Have a safe, healthy and happy holiday season.
Nils, Don, Tony and Eddy
SOURCE: Jim Romenesko