NEW YORK, April 15 — The Board of Directors of Viacom Inc. announced today it has entered into a new employment agreement with Viacom President and Chief Executive Officer Philippe Dauman. Mr. Dauman will also continue to serve as a member of the Viacom Board.
Mr. Dauman was named President and CEO of Viacom in September 2006. The new contract extends the term of his employment by five years through December 2016. His previous agreement was set to expire in December 2011.
In making the announcement, the Viacom Board cited Mr. Dauman’s strong operational and financial leadership. In 2009, Viacom increased its operating free cash flow, expanded its operating margins and restructured and strengthened its debt profile. Reflecting this performance, Viacom shares have been among the best performing large media company stocks since the beginning of January 2009.
“Philippe is a great leader who has demonstrated an extraordinary and consistent ability to deliver results for all Viacom shareholders,” said Viacom Executive Chairman Sumner Redstone. “Philippe has strengthened Viacom’s iconic entertainment brands, increased efficiency in every area, profitably extended our world-wide footprint, and forged significant long-term agreements with distribution and other partners. Most important, he has revived our creative spirit and our focus on innovative and distinctive content. With nearly 25 years of entertainment industry experience and a unique connection to Viacom, Philippe has the perspective and the vision to lead Viacom to new levels of success for many years to come.”
Mr. Dauman said, “I have had the privilege to lead a great team and I look forward to guiding them into the bright future we see ahead for Viacom and our shareholders. We have many of the greatest entertainment brands in the world and an unparalleled tradition of innovation and creativity in films and in television programming, all supported by a strong operational and financial organization. That is a winning combination and it will be the catalyst for Viacom to produce even greater entertainment experiences, to build ever more powerful entertainment platforms and to fully realize our unlimited potential.”
The vast majority of Mr. Dauman’s compensation continues to be in the form of performance-based awards, which are subject to the achievement of a combination of specific operational and financial targets and shareholder returns. Terms of the employment agreement will be available in filings with the Securities and Exchange Commission.
In addition to his role as President and Chief Executive Officer of Viacom, Mr. Dauman has served on the Company’s Board of Directors since 1987.