Newspaper publisher Hollinger International says its chief executive Conrad Black and other top officials will step down after the company found unauthorised payments to Black and other executives.
Hollinger, whose newspapers include the Daily and Sunday Telegraph in Britain, the Chicago Sun-Times and the Jerusalem Post, said it has hired Lazard to evaluate strategic alternatives, including a possible sale of the company or a sale of one or more of its major properties.
Black is not the only executive leaving the company. The board of directors accepted the resignations of David Radler as president and chief operating officer and Mark Kipnis as corporate counsel, according to the company.
The moves come after a board committee determined that over $32m in payments were made that were not authorised or approved by either the audit committee or the full board of directors.
About $7.2m was paid to Black, and another $7.2m paid to Radler in 2000 and 2001, according to a Hollinger news release.
Black, Radler and another executive have agreed to repay Hollinger the full amount of the unauthorised payments they received, together with interest, the company said.
Hollinger said Black, who is also the company's main stockholder, would resign from the post on November 21 but would remain as non-executive chairman and devote his time to pursuing strategic alternatives for the group.
Gordon Paris, currently a director, has been elected interim CEO.
