Viacom and CBS Executives to Earn Big Bucks in Merger Deal

By Benjamin Mullin

The merger of Viacom Inc. and CBS Corp. will be lucrative for the top executives of both companies.

Viacom Chief Executive Bob Bakish, who will become president and CEO of the combined company, ViacomCBS, has signed a new contract ending four years after the deal closes. The contract lists salary, bonuses and other incentives worth about $31 million a year, roughly 55% higher than Mr. Bakish's total compensation in the most recent fiscal year, the company said in a securities filing.

Acting CBS Chief Executive Joe Ianniello, who will be chairman and CEO of CBS at ViacomCBS, will receive a payout of about $70 million when the deal closes. That payment resulted from a provision in his old contract at CBS that entitled him to a lump sum if he wasn't named CEO of the combined company in the event of a merger.

Viacom and CBS last week struck a deal to reunite the empire of media mogul Sumner Redstone, creating a conglomerate with a valuation of $27 billion. The deal will combine Viacom's popular cable channels, including Nickelodeon and Comedy Central, as well as its Paramount movie and TV studio, with the CBS broadcast network and premium cable channel Showtime.

Directors of National Amusements Inc., the holding company that controls CBS and Viacom, voted to approve the merger earlier last week, according to a person familiar with the matter. The board, which includes Shari Redstone and her father, Sumner, voted unanimously in favor of the deal, the person said.

Mr. Bakish's new base salary is $3.1 million, an increase of about 3% from his previous salary of $3 million, according to the filing. He also is eligible for a bonus of $12.4 million, an increase of 77% from his previous target bonus of $7 million, as well as a long-term incentive package worth $16 million, an increase of about 60% over his previous incentive package worth $10 million.

Mr. Bakish will also be given a one-time stock grant of ViacomCBS shares worth $5 million.

Write to Benjamin Mullin at Benjamin.Mullin@wsj.com

(END) Dow Jones Newswires

August 19, 2019 17:23 ET (21:23 GMT)

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