CBS Corp. President and CEO Leslie Moonves has a new employment contract that will cut his salary by $2.4 million per year, while tying some additional compensation to CBS stock and stock prices.
The new deal, announced Tuesday, supersedes his previous contract and extends his tenure through Sept. 30, 2011.
His new salary is $3.5 million. His previous salary of $5.9 million included $2.9 million in deferred compensation. Mr. Moonves will be eligible for an annual performance-based bonus and will receive what was described as “significant equity-based compensation that ties the value of the agreement to the performance of the company’s stock.”
The new deal also includes a one-time option to purchase 5 million shares of CBS Class B common stock, which will be granted later this week, and which will vest in four equal installments over the next four years. The agreement also provides Mr. Moonves annual restricted stock units with a value of $7.6 million per year and includes incentives for him to “continue his relationship” with CBS after the contract ends.
“I look forward to working with Les for many years to come,” CBS Corp. Executive Chairman Sumner Redstone said in the announcement. “What he has accomplished since we unleashed the new CBS Corp. has exceeded all my expectations. There is no better CEO in America, and I have no doubt that his success will only continue as he leads CBS into the next decade.”
“I love this great company and the talented people with whom I am privileged to work,” Mr. Moonves said. “I am very excited about our future together and confident in our continued success.”