GreatBanc Trust Company Named Independent Trustee of Newly Formed Tribune Company ESOP
April 23 2007 - 1:01PM
PR Newswire (US)
ESOP formed for Tribune Company's Going Private Transaction OAK
BROOK, Ill., April 23 /PRNewswire-FirstCall/ -- GreatBanc Trust
Company is pleased to announce that it is Independent Trustee of
the newly formed Tribune Company Employee Stock Ownership Plan
(ESOP), according to Michael Welgat, President, GreatBanc Trust.
The formation of the ESOP is an important element in Tribune's
recently announced transaction to take the company private, and
GreatBanc Trust played a critical role in the structure and design
of the transaction. "It is an honor and a privilege to support this
historic event, and we look forward to the continuing
relationship," said Welgat. GreatBanc Trust has been involved in
other landmark ESOP transactions, including serving as trustee for
the first 100 per cent ESOP utilizing a limited liability company
(LLC) in the United States, according to Welgat. GreatBanc Trust
serves as ESOP Trustee for a number of Fortune 500 companies and
over 150 private companies across the US. Marilyn Marchetti, Senior
Vice President of GreatBanc Trust, led the GreatBanc Trust ESOP
team in structuring the Tribune transaction and will continue to be
team leader in providing Independent Trustee services to the
Tribune ESOP. Under Marchetti's leadership, the GreatBanc Trust
ESOP team for Tribune also included Danielle Montesano, Senior Vice
President, ERISA attorney; Julie Williams, Vice President, ESOP
valuation expert and MBA; and Jim Staruck, Vice President, mergers
and acquisitions attorney and MBA. "Acting as Independent Trustee
during the transaction process, GreatBanc Trust's primary role was
to assure that the transaction was fair to the employees
participating in the Tribune ESOP," according to Marchetti. "In our
continuing role as Independent Trustee, our sole duty is to protect
the interests of the ESOP participants and beneficiaries and to act
in their best interests." GreatBanc acted as "watchdog" for the
Tribune ESOP participants in analyzing and approving this
transaction, said Marchetti. "GreatBanc Trust takes its job as
Independent Trustee very seriously and was at the table on all
decision making, negotiating vigorously to get the best possible
deal for the employees," she declared. "GreatBanc Trust put
together a powerful and experienced team to ensure that this
transaction was prudent from a financial point of view for the
Tribune ESOP and its participants." In connection with the Tribune
ESOP transaction, GreatBanc Trust retained Duff & Phelps, LLC
as its independent financial advisor and KL Gates as its legal
counsel. ESOPs were developed to allow employees to receive "a
piece of the pie" and to share in the fruits of their labors,
according to Marchetti. "Rather than receiving just a paycheck,
employees who own shares of their employer's stock through an ESOP
share in any growth in their employer's value and are motivated to
make the company more profitable. The most successful ESOP
companies are those that invest in educating their employees about
the potential benefits of the ESOP and the ways in which they play
a role in creating value for the company and for themselves, as
owners. Successfully implemented ESOPs can positively affect a
company's bottom line profits, which often translates to
significant wealth creation in employees' ESOP retirement
accounts," said Marchetti. The newly created Tribune Company ESOP
will be funded solely through company contributions. Those
contributions will deliver shares of Tribune stock to eligible
employees' accounts. The first allocation, for the year 2008, will
be made in early 2009. The company initially anticipates an annual
allocation of approximately 5 percent, based on employees' eligible
compensation. Marilyn Marchetti has been instrumental in developing
and structuring ESOPs for many U.S.-based multinational
corporations and has been a featured speaker at ESOP conferences in
the United States, Europe, China and Africa. She is a former member
of the Board of Directors of The ESOP Association and is currently
on its Board of Governors. She also serves on the Legislative and
Regulatory Committee of the ESOP Association and is the founder of
the Illinois Chapter of ESOP Association and served as its Chapter
Secretary and Treasurer. Incorporated in 1989 as a full service
trust company, GreatBanc Trust provides trust, investment and
wealth management services to individuals as well as a
comprehensive range of institutional services to corporations,
foundations, endowments and not-for-profit organizations. GreatBanc
Trust is nationally recognized as a highly skilled, independent
ERISA trustee with a specialization in employee stock ownership
plans (ESOPs) and sophisticated, cutting edge ESOP transactions for
the Fortune 500 as well as smaller companies. Together with its two
affiliates, Salem Trust Company and Pennant Management, Inc.,
GreatBanc Trust supervises client assets from its headquarters in
Oak Brook, IL and offices in New York, Chicago, Milwaukee and
several locations in Florida. Contact Information: Marilyn
Marchetti, Senior Vice President GreatBanc Trust Company (630)
572-5121 DATASOURCE: GreatBanc Trust Company; Tribune Company
CONTACT: Marilyn Marchetti, Senior Vice President of GreatBanc
Trust Company, +1-630-572-5121, Web site:
http://www.greatbanctrust.com/
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