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MediaNews pays bonuses after Merc deal

MediaNews Group has paid its top executives $1.875 million following the company’s purchase of the Mercury News and Contra Costa Times and an investment agreement with Chronicle owner Hearst Corp., according to a Securities and Exchange Commission filing.

Gerald Grilly is also retiring, and will receive $1.25 million severance payable over three years, and a “fiscal 2006 performance bonus” of $81,250 and $33,000.

Replacing Grilly will be Steve Rossi, the former CFO of Knight Ridder, whose annual base salary will be $600,000 not including bonuses and benefits.

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