Dennis FitzSimons will step down as chairman and CEO of the Tribune Co. after it completes its transaction led by investor Sam Zell, the company said Wednesday.
Mr. Zell, who has invested $250 million in Tribune and plans to increase that investment to $315 million, will become chairman of the board. The company will be privately held and owned by the Tribune Employee Stock Ownership Plan.
Like other newspaper companies, Tribune Co. has been hit hard by declining readership, higher costs and a shift of advertising to the Internet. Tribune Co. also was loaded with debt from its 2003 acquisition of Times Mirror Co., owner of the Los Angeles Times and other papers.
Mr. FitzSimons joined Tribune in 1982 as sales director of WGN-TV, Chicago, and later became head of the company’s television operations. In 2003 he became chairman-CEO in 2004.
The company was put in play when the Chandler family, which remained a major stockholder in Tribune after selling Times Mirror, became dissatisfied with the management and the company’s stock price.
“I am proud to have been part of Tribune for more than 25 years,” Mr. FitzSimons said in a statement. “The company’s greatest strength has always been the talent and dedication of its 20,000 employees. I thank them for their commitment to serving our readers, viewers, listeners and advertisers.”
FitzSimons, 57, is in line to walk away with as much as $40 million, depending on what date he chooses to depart, according to a report in the Los Angeles Times.