$58.9 Million Viacom Severance for Freston

Oct 18, 2006  •  Post A Comment

Former Viacom CEO Tom Freston will receive termination payments of about $58.9 million, the company said in a Securities and Exchange Commission filing Wednesday.

Mr. Freston, who was removed by Chairman Sumner Redstone and the Viacom board in September, signed a separation agreement with Viacom on Oct. 16. In addition to the termination payments-which equal his salary, deferred compensation and target bonus through 2009-restricted stock awards will become vested and converted into Viacom Class B stock. Viacom valued that stock at about $10 million.

The former CEO also gets $7.4 million in deferred compensation already earned and the $5.7 million balance in Viacom’s excess 401K plan.

Mr. Freston will also be paid $1 million a year as an adviser to the company for three years.

The separation agreement also includes clauses regarding confidential information, solicitation of employees, litigation cooperation and non-disparagement.