Moonves, CBS Reach Pay Deal
Package More Tied to Stock Performance
By Mike Farrell -- Multichannel News, 10/16/2007 10:48:00 AM EDT
CBS Corp. has struck a new employment deal with CEO Les Moonves, a contract that is more tied to the broadcast giant’s stock performance.
In a statement late Tuesday, CBS said that it Moonves has signed a contract that supersedes his prior agreement and extends his employment through Sept.30, 2011.
According to the deal, Moonves will receive an annual base salary of $3.5 million, compared to his $5.9 million base (including $2.9 million in deferred compensation) in his previous contract. Moonves will also be eligible for an annual performance-based bonus and will receive significant equity-based compensation that ties the value of the agreement to the performance of CBS stock.
Included in the agreement is a one-time option to purchase five million shares of CBS Class B Common Stock, which will be granted later this week. These stock options will vest in four equal installments over the next four years. Additionally, the agreement provides Moonves annual restricted stock units during the term with a value of $7.6 million per year. The company has also provided incentives for Moonves to continue his relationship with CBS upon the end of the employment term.
The compensation agreement is similar to one reached earlier this year with CBS chairman Sumner Redstone, where his pay package was more closely tied to the performance of CBS stock. Redstone reached a similar agreement with Viacom – where he is also chairman – last year, as did Viacom CEO Philippe Dauman.
“I look forward to working with Les for many years to come,” Redstone said in a statement. “What he has accomplished since we unleashed the new CBS Corporation 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.”
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