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