Sun-Times Media Group CEO Getting $2.7 Million Good-Bye

By: E&P Staff Sun-Times Media Group CEO Gordon Paris -- who aroused some shareholder anger two years ago when it came out that the newspaper company was paying him a $2.8 million salary even as it emerged from a debilitating financial scandal -- will get nearly as much in a lump sum when he steps down at the end of the year, the company disclosed in a U.S. Securities and Exchange Commission (SEC) filing Friday afternoon.

Paris will receive a cash lump sum payment of $2.7 million within 10 business days of his Dec. 29 termination date.

According to the separation agreement filed with the SEC, Paris, 53, is resigning as CEO effective Dec. 29 "to facilitate the relocation of the position to Chicago." As E&P reported Wednesday, (http://www.editorandpublisher.com/eandp/search/article_display.jsp?vnu_content_id=1003121827) Sun-Times Media Group is moving all its operations from New York, where Paris and two other key executives maintained operations, to Chicago, the market where all of its newspapers, including the flagship Chicago Sun-Times, are located.

Paris will continue as a director and chairman of the special committee that investigated alleged massive financial fraud when the company was known as Hollinger International and was controlled by Conrad Black. The company is suing Black, former Sun-Times Publisher David Radler and others for allegedly looting Hollinger of some $400 million.

Paris was criticized for the size of his salary in 2004, since Hollinger International was by then a far-smaller chain that was struggling financially.
In Wednesday's departure announcement, however, Sun-Times Media Group Chairman Raymond G.H. Seitz said the company was grateful Paris had assumed "the role of CEO during an enormously difficult time, and for his substantial accomplishments on behalf of shareholders."

The filing also details the separation agreements for two other executives located in the company's New York office. General Counsel James Van Horn, 50, will receive an $875,000 cash payment. Treasurer Robert Smith is to be paid $235,000.

All the executives agreed to "provide reasonable cooperation" in connection with the burgeoning litigation that's resulted from the financial scandal, the SEC filing said.