Top Comcast executives take a pay cut in 2011

Comcast Corp.’s highest-paid executives — Chief Executive Brian Roberts and NBCUniversal Chief Executive Steve Burke — experienced compensation deflation last year.

Roberts’ pay package shrank 13.3% in 2011 to $26.9 million. That included a performance-based cash bonus of $5.5 million for the 52-year-old executive.

Meanwhile, Burke’s compensation dropped a whopping 32% to $23.7 million, which included a performance bonus of $6.7 million. The 53-year-old executive’s amount fell dramatically in 2011 as it was the first time in three years that he did not collect a signing bonus.

Burke, who took over management of NBCUniversal last year when Comcast acquired controlling interest in the company, received bonuses of about $10 million in both 2009 and 2010 for extending his contract.

The compensation, disclosed Friday in a proxy filed with the Securities and Exchange Commission, put the managers of the Philadelphia-based cable and entertainment giant in the middle rungs of corporate pay across big media conglomerates.

By comparison, CBS Corp. Chief Executive Leslie Moonves received a package valued at $69.9 million last year, Discovery Communications Chief Executive David Zaslav received $52.4 million; Viacom Chief Executive Philippe Dauman captured $43 million, Walt Disney Co. Chief Executive Robert Iger collected $31.4 million, and Time Warner Inc. Chief Executive Jeffrey Bewkes got $25.9 million.

Three years ago, Comcast’s top executives agreed to a four-year freeze in their base salary. Roberts’ base salary was $2.8 million; Burke’s was $2.24 million.

The top Comcast executives could have received fatter packages last year. The company achieved substantial growth in revenue and free cash flow, but its top executives elected to bring their performance base bonus calculations more in line with how their underlings are paid — and the Comcast board's compensation committee agreed.

In its proxy, Comcast said its operating management’s “cash bonuses are based primarily on business unit operating metrics rather than consolidated financial performance.”

Chief Financial Officer Michael J. Angelakis last year received a total package of $21.9 million, which was a 4% decline from his 2010 compensation. In contrast, Executive Vice President David L. Cohen accepted more stock and other bonuses which boosted his take 19% to $15.1 million.

Comcast Cable Communications Chief Executive Neil Smit collected $18.5 million in 2011, including a $3-million cash performance bonus. This was the first time that Comcast was required to disclose Smit’s earnings. Smit joined Comcast two years ago but he did not become a top corporate officer until last year when he was named chief executive officer of Comcast Cable.

And Ralph J. Roberts, the 92-year-old co-founder of the cable company, collected his customary $1-a-year salary.

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Top photo: Comcast Chief Executive Brian Roberts in 2007. Credit: George Widman / Associated Press.  Bottom right: NBCUniversal Chief Executive Steve Burke in 2010. Credit: Nati Harnik / Associated Press.

CBS Chief Leslie Moonves collected nearly $70 million last year

"Two Broke Girls" and one rich CEO.

CBS Corp. Chief Executive Leslie Moonves catapulted to the top of the media pay ladder in 2011 with a compensation package valued at $69.9 million, according to documents filed Friday with the Securities and Exchange Commission.

The 62-year-old executive's package jumped about 21% over the $57.7 million that he reaped in 2010, which included a $27.5-million bonus.

“CBS significantly outpaced the industry in 2011 in terms of shareholder return," the media company said in a statement. "In fact, the company is the second best performing stock in the entire S&P 500 since March of 2009... The vast majority of this year’s pay is once again keyed to performance-based measures, closely aligning the overall value of the compensation with that of the company’s shareholders.”

CBS stock has been on a tear, soaring 42% last year. The stock closed Friday at $32.50 a share, an eye-popping increase over the $4 a share that it was trading for in 2009, following the market collapse. Investors have bid up the stock, in part, due to the anticipation that CBS will rake in hundreds of millions of dollars in political advertising dollars this year as candidates and political action committees try to influence the outcome of elections.

The company's assets include the CBS broadcast network, home to such hit shows as "Two Broke Girls," "NCIS" and "Survivor," local TV and radio stations and billboards. CBS also owns premium pay cable channel Showtime and Simon & Schuster publishing house.

Sumner Redstone, the executive chairman of CBS Corp., received compensation of $20.3 million in 2011. That means the 88-year-old mogul, who has been slowing down in recent years, collected more than $41 million in 2011 for his executive position at CBS Corp. and Viacom Inc. (Redstone received $21 million as executive chairman of Viacom).

Viacom Chief Executive Philippe Dauman made $43 million in 2011, considerably less than his 2010 package of $84.5 million.

Viacom and CBS traditionally lead the media pack because of the dual-stock structure of the two companies. Redstone controls nearly 80% of the voting stock, making it difficult for other shareholders to mount a successful protest over governance issues, including executive compensation.

Though not in the same stratosphere of Apple Inc.’s new chief executive, Tim Cook, whose compensation totaled $378 million in 2011, Moonves’ pay still is considerably higher than his peers in the media world. 

For example, Moonves received more than twice that of Walt Disney Co. Chief Executive Robert Iger, who collected $31.4 million in fiscal 2011, and nearly three times the amount of Time Warner Chief Executive Jeffrey Bewkes, who took in $25.9 million.  Both Disney and Time Warner are much larger than CBS.

News Corp.’s Chief Executive Rupert Murdoch raked in $33.3 million in 2011 running his global empire.  Discovery Communications Chief Executive David Zaslav collected a package valued at $52.4 million last year.

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Photo: CBS Chief Executive Leslie Moonves. Credit: Peter Foley / Bloomberg

David Zaslav is Discovery's $52-million man

Discovery Communications Chief Executive David Zaslav might have had a rocky year in 2011 -- his joint ventures OWN: The Oprah Winfrey Network and the small kids' network HUB stumbled badly -- but the struggles didn't affect his compensation.

Zaslav's 2011 pay package, which included salary, stock, options and other perks, was valued at $52.4 million -- more than 20% over the 2010 level of $42.6 million. 

The large package propels Zaslav into the upper stratosphere of media compensation, and makes him among the highest paid executives in the nation.

In comparison, Robert Iger, chief executive of the much larger Walt Disney Co., collected a $31.4-million package last year. Viacom Inc.'s Philippe Dauman last year received $43 million (considerably less than Dauman's 2010 compensation of $84.5 million). Time Warner Inc. Chief Executive Jeff Bewkes took a slight pay cut last year, collecting $25.9 million.

Zaslav's base salary was nearly $3 million.  His stock and option grants were valued at $44 million, according to the company's proxy filed late Friday.  Some of the options were allocated in 2008, when Discovery's stock was trading at below $20 a share.  On Monday, Discovery's shares traded around $51.

A Discovery spokesman said 90% of Zaslav's compensation was due to stock appreciation.

In the proxy filing, Discovery said it had a strong year financially, with revenue climbing 12% to $4.2 billion. Net income from continuing operations jumped 75% to $1.1 billion.

But there were setbacks. Wall Street analysts have been discounting the value of OWN. Some are questioning whether the company will write down the network's book value this year.

Discovery, which owns 50% of OWN, has invested more than $312 million in the channel. Winfrey owns the other 50%.

Winfrey on Monday conceded that OWN has been trickier than she had anticipated during an appearance on "CBS This Morning."

According to Discovery's filings, its other highly compensated executives included founder and Chairman John Hendricks, who received a package valued at $8.9 million; Chief Financial Officer Bradley E. Singer, whose compensation was valued at $4.2 million; and Mark G. Hollinger, president of Discovery Networks International, whose compensation topped $5.5 million.  Former Chief Operating Officer Peter Liguori, who left Discovery at the end of the  year, received $4.8 million.

Discovery declined further comment.

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Photo: Partners Oprah Winfrey and Discovery Communications Chief Executive David Zaslav toast their joint venture OWN: Oprah Winfrey Network.  Credit: Robin Layton / OWN

 

Viacom executives again among America's highest paid

Billionaire Sumner Redstone got a 39% boost in compensation last year in his role as executive chairman of Viacom Inc. The 88-year-old media mogul and his top two lieutenants together collected compensation packages in 2011 totaling nearly $100 million.

Viacom Chief Executive Philippe Dauman was awarded $43 million in salary, stock and other benefits, according to the company's proxy filed late Friday with the Securities & Exchange Commission. While still sizable, Dauman's compensation was considerably less (a 49% decrease) than in the previous year when he earned the distinction of being the highest-paid executive in corporate America with a package totaling $84.5 million.

Viacom's second in command, Chief Operating Officer Thomas Dooley, collected $34 million -- an amount that exceeds the pay package of Robert Iger, chief executive of the much larger Walt Disney Co. Iger received a total package of $33.4 million in 2011.

Executives of Viacom, which owns MTV, Nickelodeon, Comedy Central and Paramount Pictures, have long been among the highest paid in the media industry. The compensation awarded to Dauman and Dooley spiked in 2010 when the two executives signed new employment agreements and received generous one-time stock awards. Dooley's 2010 package was $64.7 million.

Redstone was awarded $21 million in 2011. That was nearly $6 million more than in the previous year when his Viacom compensation was $15 million. Viacom included 12 months in the compensation calculation last year, whereas 2010 was based on a nine-month period.

"Those are big numbers," said corporate governance expert Charles Elson. "Viacom seems to be paying their executives entrepreneurial returns rather than managerial wages to run an established company with long-term assets. There seems to be a disconnect there."

Viacom defended the compensation.

"Almost 90% of our senior executive compensation is performance or equity based, which aligns their interests with those of our stockholders," Viacom said in a statement. "Their 2011 compensation reflects achievement in outstanding operational results, including double-digit growth in operating income and adjusted net earnings and a significant outperformance of the S&P 500."

Viacom's common stock increased nearly 9% last year.

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Photo: Viacom Chief Executive Philippe Dauman and Chairman Sumner Redstone in Beverly Hills in 2007.  Credit: Mel Melcon / Los Angeles Times

 

Rupert Murdoch's compensation swells to $33.3 million in 2011

News Corp. Chief Executive Rupert Murdoch continues to be one of the most richly compensated executives in America -- collecting $33.3 million for fiscal year 2011.

The 80-year-old media mogul's salary and stock package soared 46% over 2010 because of the addition of a $12.5-million bonus.  

The company's top executives have been struggling to contain widespread damage from the British phone hacking scandal. The crisis exploded in July with revelations that reporters for Murdoch's now-defunct News of the World tabloid in London eavesdropped on cellphone messages of royal family members, celebrities, sports figures, crime victims and fallen soldiers. 

Rupert Murdoch and his son James Murdoch, who runs the company's European operations, are expected to be called before a high court later this year to account for the scandal.

Rupert Murdoch qualified for the full amount of his target bonus in 2011 because of his leadership "through the recent economic downturn, positioning the company for long-term growth and ongoing strategic development," according to the News Corp. proxy which was filed with the Securities and Exchange Commission on Friday morning.  The company's fiscal year ended June 30.

In 2010, Murdoch collected $22.7 million.  Each year he receives an $8.1-million base salary, an amount which has long raised the eyebrows of corporate governance experts because it is not linked to the company's financial performance.  Murdoch also was paid $8.5 million in stock awards.

His second-in-command, Chief Operating Officer Chase Carey, received $30.2 million in fiscal 2011.  Carey's compensation included a $4-million base salary, a $10-million bonus and $15.2 million in stock awards.

James Murdoch, 38, who has been under increasing pressure for his handling of the British phone hacking crisis, was paid $17.9 million.  He received $3 million in salary, $8.3 million in stock awards and a $6-million bonus.

James Murdoch's compensation soared 74% over 2010 when he received $10.3 million.  He was elevated to the No. 3 position in the company in late March -- three months before the phone hacking scandal exploded into front page news in Europe, Australia and the U.S.

James Murdoch is expected to be called back before a committee of the British Parliament to further explain his role in the scandal.  After he answered questions this summer, two former associates challenged his account of when he first learned of the widespread nature of the illegal activities at the News of the World. 

James Murdoch "played an important role during fiscal 2011 in developing the company's key businesses and investments in Europe, Asia and the Middle East," the filing said. He also "successfully transitioned into his new role as deputy chief operating officer ... expanding his responsibilities."  

Roger Ailes, chairman of the popular Fox News Channel, received $15.6 million in compensation.  That included a $5-million base salary, a $1.5-million bonus, $8 million in non-equity incentive compensation and nearly $282,000 for corporate jet privileges, a car and driver, and personal security.

Chief Financial Officer David F. DeVoe's compensation package topped $18.2 million -- more than double the $7.1 million he received in 2010.  DeVoe's compensation jumped because of the addition of a $5-million bonus and $9.5 million in stock awards.

News Corp. separately said that it was nominating James W. Breyer, a venture capitalist, to serve on the company's board of directors.  Two directors are stepping down -- Kenneth E. Cowley and Thomas J. Perkins.  Five years ago, Perkins resigned from the Hewlett Packard Co. board after that company had hired an investigator to obtain his phone records.

News Corp. did not say why Perkins or Cowley, both longtime directors, were exiting after the company's annual meeting in October. 

News Corp. had planned to nominate Murdoch's 43-year-old daughter, Elisabeth Murdoch, to the board. However, in August she delayed her nomination in the wake of the company's various controversies, including shareholder lawsuits filed after News Corp. paid $675 million to buy her London-based TV production company Shine Group. Of that amount, Elisabeth Murdoch received $214 million.

In a departure, News Corp. said it would hold its annual meeting with shareholders Oct. 21 at the Fox lot in Los Angeles.  News Corp. typically holds its annual meeting in October near the company's headquarters in New York.

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Photo: Rupert Murdoch. Credit:  Ben Gurr / Reuters

Comcast extends employment contract for CEO Brian Roberts

Cable television giant Comcast Corp. has extended by one year the employment agreement of Chief Executive Brian Roberts.

Roberts' contract was due to expire Thursday.  Instead, Roberts postponed the end date of his contract until June 30, 2012. Last year, Roberts also amended his contract for just one year, a company spokesman said.

It's not like Roberts needs job security. 

He is chairman and CEO of the Philadelphia company and he also controls 33% of the company's voting shares. The 51-year-old executive collected a compensation package of $31 million last year (significantly less than Viacom Chief Philippe Dauman's $84.5-million compensation, but still enough to keep Roberts one of the 10 highest-paid media chiefs). 

Comcast made note of the change in a brief filing Friday with the Securities and Exchange Commission. 

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Photo: Comcast CEO Brian Roberts. Credit:  Matt Rourke / Associated Press

 

 

CBS Chief Leslie Moonves receives nearly $58 million compensation package in 2010

 
CBS Corp. Chief Executive Leslie Moonves once again pulled down one of the richest paychecks in corporate America with a package valued at $57.7 million in 2010.

The 61-year-old broadcasting chief was paid $3.5 million in base salary, a $27.5-million bonus and nearly $23 million in stock and option awards, according to a filing Friday afternoon with the Securities and Exchange Commission. The company also contributed nearly $900,000 to his pension fund and $3 million in other compensation.

Last year, Moonves' compensation package was valued at $43.2 million.

CBS justified nearly 34% increase by saying that Moonves "led CBS to results that produced extraordinary growth in shareholder value, and outpaced both the industry and the company’s internal targets," according to a company statement released Friday. "During the year, the company delivered a 37% total return to shareholders and recorded a 220% increase in net income and 8% growth in revenue, all of which outpaced media peer companies."

Meanwhile, CBS' Chairman Sumner Redstone received a package valued at $20.3 million. The 87-year-old Redstone also received $15 million in awards for his role as chairman of sister company Viacom Inc. Between the two companies, Redstone's total compensation for 2010 was $35 million. 

Viacom's Chief Executive Philippe Dauman received a $84.5 million package for 2010, including a bonus currently valued at $31.65 million.

-- Meg James

Photo: CBS Chief Executive Leslie Moonves at the National Assn. of Broadcasters convention in Las Vegas earlier this week. Credit: Julie Jacobson /Associated Press

 

 

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