With investors raising eyebrows over huge compensation packages offered by Viacom to several of their top executives, the Viacom board did some slashing and cutting and bringing things back to reality.
One report said that "when Viacom (VIA) was still a combined company, it disclosed that it had paid Redstone a cash salary of $4.97 million in 2004 and a bonus of $16.5 million, both increases over the prior year, even though the company's stock had declined 17 percent during the period. Freston got a salary of $4.2 million and a bonus of $16 million, while Moonves had a salary of $5.77 million and a bonus of $14 million. All three also received packages of stock options."
In response to investor concerns, the board dropped Redstone's yearly salary to $1 million, from the previous $1.75 million, beginning in 2007. The former deferred compensation of $1.3 million will be eliminated altogether.
Don't cry too much for Redstone though, as his former bonus - while being reduced - will still have the potential of reaching $3.5 million a year.
Stock options will remain a part of his package having a grant-date value of $3 million and a yearly award of performance share units with a grant-date target value of $3 million.
It's about time they got things tied into performance rather than guarantees.
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