Viacom hasn’t yet filed its annual proxy statement, which will go into detail about its executive compensation for the 2015 fiscal year. But the company says today that the document will show that ailing Executive Chairman Sumner Redstone’s package was slashed by 85% to $2 million from $13.2 million.
While his salary was unchanged, the company says the 92-year old — whose competence is being challenged in multiple court cases — “became ineligible to receive a bonus beginning in fiscal 2015 and has not been eligible to receive an annual equity award since fiscal 2012.”
CEO Philippe Dauman’s package comes to at least $36.9 million with a 30% cut in his bonus to $14 million, plus $4 million in salary and an annual equity award valued at $18.9 million. He made $44.3 million in 2014.
Viacom’s share price declined 42.5% in the fiscal year that ended in September after factoring in dividends.
Company critics may consider the diminished compensation to still be excessive:
A shareholder in Viacom and CBS — both 80% controlled by Redstone — just sued the companies’ boards for paying him even though he’s said to be “physically and mentally incapacitated.” Viacom said the suit was “without merit.”
Also, Eric Jackson of SpringOwl Asset Management released a 99-page report that blasted Dauman’s management and the board’s “astonishing CEO pay for under performance.”
The 2014 proxy showed that the Compensation Committee was chaired by Frederic Salerno, who’s also on the CBS board. Other members included Blythe McGarvie (also a director of Accenture, LKQ Corp., and Sonoco Products and a former director of The Pepsi Bottling Group and The Travelers Companies), Inside Edition anchor Deborah Norville, Infor Global Solutions CEO Charles Phillips Jr., and former law professor William Schwartz.