Dauman Nabs $17M Signing Bonus

Renewal Pushes Viacom CEO’s Compensation Above $54M
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Viacom CEO Philippe Dauman signed a two-year employment contract extension that netted him a one-time $17 million stock award, pushing his total compensation up 22% for fiscal 2015 to $54.15 million, according to a proxy statement filed late Friday with the Securities and Exchange Commission.

According to the proxy, Viacom amended and restated Dauman’s employment agreement on Jan. 15, 2015 extending it to Dec. 31, 2018 (it was previously set to expire on Dec. 31, 2016). As part of that renewal, Viacom granted Dauman 300,000 performance restricted share units that vest in three equal annual installments beginning with fiscal year 2016. Those PRSUs deliver, at the time of vesting, 75% to 125% of the shares underlying the PRSUs, depending on the achievement of company financial targets over specified periods.  

Dauman’s base salary stayed about even at $4 million from $3.9 million in the prior year, but his non-equity incentive compensation fell 30% to $14 million from $20 million the year before. Not including the contract renewal award, Dauman’s total compensation was $37.1 million, about 16% less than the $44.3 million he received in 2014.

Viacom has been criticized for its executive pay practices of late – in a 99-page report, activist shareholder SpringOwl Asset Management noted that the company has paid Dauman and chief operating officer Tom Dooley a combined $432 million over the past five years. Earlier this week, the company announced that it had reduced founder and executive chairman Sumner Redstone’s total compensation by 85% to $2 million, and slashed Dauman’s bonus award by 30%.

According to the proxy statement, Dooley’s total compensation fell 16% to $29.4 million from $34.95 million in the prior year. Executive vice president, general counsel and secretary Michael Fricklas saw a 13.5% reduction in compensation, to $6.4 million from $7.4 million in 2014.

Executive vice president and chief financial officer Wade Davis received a 27% increase in total compensation to $5.97 million from $4.7 million in 2014, and EVP and chief administrative officer Scott Mills received a similar increase to $5.98 million from $4.7 million in the prior year.

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