MediaPost.com reports that the top executives at KRON owner Young Broadcasting, including CEO Vincent Young and CFO James Morgan, are going to have to negotiate new employment contracts with the owners of the company.

Young and Morgan wanted the creditors, who have taken control of Young Broadcasting during Chapter 11 proceedings, to honor their current three-year contract. But the creditors resisted, and on Thursday, Young and Morgan dropped their demands.

MediaPost writes:

The 2007 employment agreement that Vincent Young wanted the new owners to assume called for his annual base salary to be $1.4 million, and him to get a possible bonus of more than $2.8 million per year. 

A provision for payments helping to cover his tax obligations was included — along with provisions that could provide millions of dollars more should he be terminated, while the company was required to cover all costs attached to a leased automobile. 

But the new owners favored a deal that emerged during the bankruptcy process that had Vincent Young’s base salary at $840,000, while he could receive a $250,000 bonus should provisions be met involving the MyNetworkTV affiliate in San Francisco [KRON]. 

There was also a clause for him to get a bonus of between $250,000 and $840,000 if the Chapter 11 reorganization closed by a certain date, but that did not kick in. CFO Morgan’s 2007 deal that he wanted to continue called for a base salary of $671,000, and a bonus that could exceed $1 million annually, along with tax payments and a leased automobile. 

The lesser deal that the lenders preferred called for a base salary of $302,000 and no bonus.