CBS’ Stock Price to Determine Redstone’s Pay
Executive Chairman’s Compensation Tied More to Shareholder Returns, Less to Cash Salary, Bonuses
By Multi Channel News Staff -- Multichannel News, 3/13/2007 3:05:00 PM
Executive chairman Sumner Redstone will be closely monitoring CBS’ stock price.
The company announced a revised compensation package Tuesday whereby Redstone’s pay will be tied more to shareholder returns and less to cash salary and bonuses.
CBS said its equity-driven agreement mirrors Redstone’s package with Viacom, where he is also executive chairman, announced in September.
Redstone's salary will be lowered to $1 million per year from $1.75 million, and deferred compensation of $1.3 million per year will be eliminated. His target cash bonus will also shrink, from $6.1 million per year to $3.5 million. He will receive an annual award of stock options having a grant-date value of $3 million, as well as an annual award of performance-share units with a target value of $3 million.
The value, if any, realized from the PSUs will depend on the total shareholder return of CBS class-B common stock compared with the total shareholder return of companies comprising the Standard & Poor's 500 Composite Index over a measurement period of in general three years and in certain circumstances by a measurement of operating income before depreciation and amortization, CBS added.
CBS and Viacom officially became separate companies in January 2006.
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