Viacom detailed the $72 million exit package for its soon-to-be-former CEO Philippe Dauman in a regulatory filing Tuesday, whcih includes $58 million in severance and a pro-rated $20 million bonus.
Dauman and Viacom reached an agreement on Aug. 21 that would result in the CEO’s exit on Sept. 13. As part of that deal, both he and Viacom controlling shareholder Sumner Redstone would drop pending litigation. Viacom chief operating officer Thomas Dooley will serve as Viacom’s interim CEO until the end of its fiscal year on Sept. 30.
According to the filing with tthe U.S. Securities and Exchange Commission, Dauman will receive $58 million in severance, $46.4 of which is payable on his exit date, with the remaining $11.6 million parsed out over 29 months. In addition, Dauman is entitled to a $20 million bonus, which will be pro-rated for the 323 days that have elapsed during Viacom’s 2016 fiscal year prior to his exit date.
Viacom also will fully vest Dauman’s 1.7 million stock options, 1.1 million PSUs, and 300,000 PRSUs on the effective date. A value for those securities was not given. Viacom also will continue to provide Dauman with life insurance valued at no less than $5 million.
As part of the separation deal, Dauman can pitch his plan to sell off 49% of movie studio Paramount Pictures to Viacom’s board. According to the SEC filing, Dooley, in conjunction with the boards’ Governance Committee, is expected to schedule a meeting between Paramount management and the board to discuss its business.