The $57.2 million package, according to the latest proxy filed at the SEC, includes: $3.5 million in salary, $25 million bonus, $15 million in stock awards, $10 million in option awards, $2.8 million change in pension value, and $1.4 million in other compensation. The “other” category includes $702,855 in “transportation-related benefits” including car and use of the company jet, plus $522,769 for security.
The bonus does not include $3 million in stock granted in 2015 “for contributions to the creative successes across the Company’s portfolio of businesses.” That will be included in the tally to be reported next year.
Chairman Sumner Redstone made $10.8 million in 2014 — way down from last year’s $57.2 million, which included a $45.4 million gain in pension value.
It was a good year, at least in terms of optics, for the execs to pare back their compensation: CBS’ adjusted share price fell 12.4% in 2014, while the benchmark Standard & Poors’ 500 rose 11.4%.
Operations were mixed as the increase in retransmission consent payments from pay TV operators wasn’t enough to offset declines in ad sales and content licensing. Revenues fell 1.4% to $13.8 billion, and earnings from continuing operations fell 22.1% to $1.4 billion. But CBS collected $1.6 billion from the split off of its Outdoor Americas billboard business, resulting in a 57.5% increase in net income to nearly $3 billion.
The board’s compensation committee praised Moonves’ “consistent leadership in driving continued ratings successes, taking advantage of this success to secure four key retransmission deals, five key station affiliation deals, eight VOD deals and multiple streaming deals.” It also lauded his handling of the fight with Aereo, and the launch of CBS All Access and CBSN.
Moonves signed a new contract at the end of 2014 designed to keep him in the job to mid 2019. It guarantees him a $3.5 million annual salary, that can only be raised. It set his target bonus at $12 million beginning with last year. The board can offer a “creative bonus” in “special recognition of your leadership and direction” to create “premium content across Employer’s portfolio of businesses.” The deal also includes a host of complicated terms that should give him big slugs of stock.
But for least two years after the end of his employment, Moonves agreed to not prepare — or help anyone else prepare — “any books, articles, radio broadcasts, electronic communications, television or motion picture productions or other creations” involving CBS “or any of its affiliates or predecessors or any of their officers, directors, agents, employees, suppliers or customers.”
CBS’ compensation committee is chaired by Bank of America Chairman Emeritus Charles Gifford. Other members are former Defense Secretary William Cohen, former NAACP chief Bruce Gordon, and Sony Music CEO Doug Morris.
CBS will hold its annual meeting in New York on May 21.