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Viacom Board Said to End Salary for Sumner Redstone Viacom Board Said to End Salary for Sumner Redstone
(about 1 hour later)
The ailing media mogul Sumner M. Redstone will no longer draw a salary from Viacom, one of the media companies that he controls, according to two people briefed on the news. The ailing media mogul Sumner M. Redstone will no longer draw a salary from Viacom, one of the media companies he controls, according to two people briefed on the news.
Last week, the company’s board moved to evaluate Mr. Redstone’s pay and position after new details about his condition were made public during a trial over his mental competency. The suit, filed by a former companion and romantic partner, was dismissed. Last week, the company’s board moved to evaluate Mr. Redstone’s pay and position after new details on his condition were made public during a trial over his mental competency. The suit, filed by a former companion and romantic partner, was dismissed.
Mr. Redstone, 92, is the chairman emeritus and controlling shareholder of Viacom and CBS, a $40 billion media empire. In February, he stepped down as chariman at both companies. Mr. Redstone, 92, is the chairman emeritus and controlling shareholder of Viacom and CBS, a $40 billion media empire.
The new details about his condition included a transcript of videotaped testimony from Mr. Redstone himself along with the evaluation by a geriatric psychologist. The trial’s judge, in his evaluation of the testimony, said, “It is also not in dispute that Redstone suffers from either mild or moderate dementia.” Filed in November, the lawsuit included several embarrassing and salacious claims about Mr. Redstone, who has had minor strokes and has a speech impediment. Those included details about his sexual appetite, incontinence and demands to eat steak while on a feeding tube.
Since then, investors have raised questions about Mr. Redstone’s pay, role and other corporate governance issues at both Viacom and CBS.
The move by Viacom’s board to stop his pay addresses shareholders’ concerns and also is a symbolic gesture that Mr. Redstone is no longer involved and deserving pay as a company executive.
In February, he stepped down as chairman at both companies.
The new details on his condition included a transcript of videotaped testimony from Mr. Redstone himself along with an evaluation by a geriatric psychologist. The trial’s judge, in his evaluation of the testimony, said, “It is also not in dispute that Redstone suffers from either mild or moderate dementia.”
Mr. Redstone’s total compensation was $2 million in the 2015 fiscal year, down from $13 million in 2014.Mr. Redstone’s total compensation was $2 million in the 2015 fiscal year, down from $13 million in 2014.
Mr. Redstone controls about 80 percent of the voting shares in Viacom and CBS through National Amusements, the private theater chain company started by his father. Mr. Redstone controls about 80 percent of the voting shares in Viacom and CBS through National Amusements, the private theater chain company started by his father. Control of the two companies will be passed to a trust only after he dies or is declared not competent.
Viacom’s board met on Wednesday. It is not clear whether the board of CBS was making the same considerations.Viacom’s board met on Wednesday. It is not clear whether the board of CBS was making the same considerations.
A CBS spokesman could not be reached for comment. CBS declined to comment.
The Viacom development was first reported by The Wall Street Journal.The Viacom development was first reported by The Wall Street Journal.