Viacom Discloses Pay, Succession Plans for Redstone

Jul 23, 2004  •  Post A Comment

Viacom has all but assured Tom Freston and Leslie Moonves that either or both executives will replace Sumner Redstone as CEO of Viacom by 2007, a Securities and Exchange Commission filing shows.

According to the document, which details the executives’ employment contracts, by no later than Dec. 31, 2007, either Mr. Freston or Mr. Moonves or both will be named CEO of the media giant. If one is chosen over the other for the CEO spot, the also-ran will be named sole president and chief operating officer and be required to serve in the role for 18 months to ensure a smooth transition.

Their new contracts disclose that Mr. Freston and Mr. Moonves each will have an annual base salary of $3 million and deferred compensation of $2 million, while Mr. Redstone will receive a base salary of $3.5 million, up from last year’s base of $1 million, and $2 million in deferred compensation, down from $4 million under his previous contract.