Viacom cuts Sumner Redstone’s compensation package

Sumner Redstone

Viacom has cut the compensation package for founder and executive chairman Sumner Redstone.

In a statement late Wednesday, Viacom said Redstone still received his typical $2 million salary in 2015, but was no longer eligible to receive a bonus or stock in the company. His total compensation in 2014 was $13 million.  That’s an 85% pay reduction for 2016.

Also receiving a pay cut is CEO Philippe Dauman. His bonus has been cut by 30%. In 2015 Dauman took home a bonus of $14 million, down from $20 million the year prior. Dauman’s base salary increased slightly to $4 million from $3.9 million, while his stock award was reduced slightly to $18.9 million from $19.9 million.

Redstone, 92, was forced to head to court this past November to defend his competency after his ex-girlfriend Manuela Herzer sued, charging he had become a “living ghost.”

She challenged a document giving Dauman responsibility for decisions about his medical care. Herzer charged that Redstone “lacked the mental capacity” to make the change and remove her from decisions about his care.

A judge hearing the case last year declined to immediately grant Herzer’s motion to again make decisions about his care. The two sides are due back in court next week.

A lawsuit was filed this week that says Viacom, CBS, and various board members have prioritized Redstone’s interests over that of shareholders and the company at large.

Redstone controls the overwhelming majority of voting shares at both Viacom and CBS.

The company’s revenue and profit were both down last year, and its share price declined 43%.