Viacom Takes Sumner Redstone Off The Payroll

Sumner Redstone

(Reuters) -- May 18 Viacom Inc's board voted on Wednesday to stop paying 92-year-old controlling shareholder and Chairman Emeritus Sumner Redstone, according to a source familiar with the matter.

Viacom had cut the total pay of its billionaire chairman, who also owns a majority stake in CBS, by 85 percent to $2 million last year.

Redstone remains chairman emeritus, according to the Wall Street Journal, which first reported the pay cut.

Redstone controls both Viacom and CBS Corp. with a nearly 80% voting stake in each company. Both companies had scaled back his pay significantly already. His total compensation at Viacom fell from $13.2 million in fiscal 2014 to $2 million last year, as the media giant cut his bonus, according to a securities filing.

At CBS, meanwhile, Mr. Redstone’s pay also declined from $10.8 million in 2014 to $1.76 million last year. When the mogul stepped down as executive chairman of the two companies in February, CBS reduced his base salary from $1.75 million to $1 million. (Viacom didn’t take a similar action at the time.)

In the wake of the deposition, Viacom board members began considering whether to cut Mr. Redstone’s pay further, as well as what role he should continue to have at the company, according to people familiar with the matter.

The board's move follows the dismissal of a mental competence lawsuit against the media mogul that was filed by his former girlfriend, who challenged her removal from his healthcare directive.

The judge's decision to toss the case was victory for Redstone but did not address his ability to handle business matters at CBS and Viacom.