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Viacom CEO Philippe Dauman received $84.5 million compensation in fiscal 2010

DAUMAN

Viacom Inc. Chief Executive Philippe Dauman was awarded salary, stock and other benefits totaling $84.5 million during the nine months of 2010 that were covered in Viacom's fiscal year.

That amount included one-time stock award worth $31.65 million -- money that was not paid to Dauman in 2010 but will vest over the next five years if the company achieves certain performance goals. The grant was bestowed on Dauman as a signing bonus in April after he extended his employment contract six and a half years. Viacom is the parent of several cable networks including MTV, Comedy Central, Nickelodeon, as well as Paramount Pictures.

Dauman's compensation was included in Viacom's proxy filed with the Securities and Exchange Commission late Friday afternoon. The document revealed that, during the first nine months of 2010, Viacom provided nearly $165 million in stock and other compensation to its three top executives: Dauman, Chief Operating Officer Thomas Dooley and founder and chairman Sumner Redstone.

Dooley, who signed a new six-and-a-half-year contract in May, received a total compensation of $64.7 million. His one-time signing bonus was $24.2 million.

Redstone, 87, was awarded compensation that totaled $15 million, according to the filing.

Midyear, Viacom changed its fiscal year and it now concludes on Sept. 30. Thus, Viacom reported nine months of salary information -- Jan. 1 through Sept. 30 -- in its proxy. The three men would have received several million dollars more if their compensation would have included 12 months.   

The company defended the amounts saying compensation of its top executives was based on performance measures. Viacom's common shares increased in value 22% for the nine months covered in the reporting period, significantly outperforming the market.

"About 90% of the 2010 compensation is long-term equity awards that align our executives’ interests with those of our stockholders," Viacom said in a statement. "The majority of 2010 compensation is one-time equity grants related to the previously announced long-term extensions of employment agreements, which vest over the life of those agreements. In 2010 Viacom achieved outstanding operational and financial results, including double-digit growth in operating income, adjusted net earnings and total shareholder return."

-- Meg James

Photo: Viacom Chief Executive Philippe Dauman. Credit: Jennifer S. Altman / Los Angeles Times

 
Comments () | Archives (8)

So obscene. And, of course the standard company justification is asserted as usual - after all, isn't that the primary job of a board of late?. We kid ourselves we're living in a democracy when really it's these types that form our current government - an aristocracy. The FCC is asleep at the wheel allowing these companies to get so large and powerful that they can reward themselves in this manner, kill smaller businesses, etc., etc., etc., etc., etc., etc.

He can't be that good, otherwise he would have received a full $85 million. But, you do have to give him credit (ha, like he needs it) for coming up with all those great ideas for Viacom t.v. programs, then writing them, directing and starring in them. That's a lot of work and worthy of a mere few thousand times the income of the people that work under his benevolence. Live long and perspire, indeed.
www.boskolives.wordpress.com

Viacom Inc. has provided its top executives adequate amounts of money that might not impress some people and would surprise others, but it seems that the monies they are paying Chief Executive Philippe Dauman as part of his pension and had been paying him with his salary annually are staggering but meant to fuel productivity and the advancement of Viacom Inc., not scare competitors or having people thinking that Viacom is wasting their financial assets. The money that Viacom Inc. is paying people like Dauman, Dooley, and Redstone is inspiring and a good business model because they're paid well and the thought of the millions of dollars that they're earning each year compounding amounts to a great deal of money. You would think that executives like Dauman, who live in LA and carry with them so many responsibilities might even be making more money at places like Viacom Inc. than they're even currently earning as CEOs, but above all their salaries are more than enough proof that Viacom Inc. is and has had humble men of good character working for them who seriously pay attention to and care about the success and future of Viacom. All in all, this talk about money paid to CEOs at Viacom Inc. should signify to Viacom Inc. and its competitors that Viacom has been doing very well managing itself financially and as an organization as a whole, and that it could and should go even farther as a company.

Brendan Ryan

The Brendan Ryan Company
Houston, Texas

I'm...sure those large sums of money are...well deserved? I hope he can sleep well at night. No, I mean, I really do hope he sleeps incredibly good because he better be making the best decisions any human on earth can make...like...airing...SKINS.

D'you think if Dauman was only paid half as much that he'd quit?

In America in 1970, the ratio of CEO to average worker was about 14 to 1. Similar ratios existed in Germany and Japan and the UK. Today, Germany and Japan's are roughly the same. The UK's is 60 to 1. In the USA, it is now 512 to 1.
We have capitalism for the poor and socialism for the rich when it comes to bail outs. We also have capitalism with low taxation building a smaller and smaller elite over generations. Sooner or later, things will burst.

bak

When will people recognize that the the world does not need an infinite supply of money. The only reason that corporations like viacom need money is to control the masses and distract everyone from the bigger picture. Take away the money, and ask yourselves....... Why do i work for viacom? Do I have an overall positive impact on the world? Really!? when is it enough? I cant wait for the day when there is a complete breakdown of all economy and the process of natural selection really kicks in.


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