Bigger doesn’t mean better pay for Redstone’s CEOs

All chief executives are not equal in media mogul Sumner Redstone’s empire, at least when it comes to what they are paid.

Viacom Chief Executive Philippe P. Dauman last year earned 56% less than CBS Corp. CEO Leslie Moonves, even though Viacom has a market capitalization 72% greater than CBS and performed substantially better.

Dauman’s compensation last year totaled $20.6 million, according to a proxy statement filed with the Securities and Exchange Commission on Friday.

In 2007, he received a $2-million salary, $7 million in bonuses and the remainder in stock and options. It was the first full year that Dauman, 54, served as CEO of the New York-based company, which owns MTV, Nickelodeon, Comedy Central and Paramount Pictures.

Dauman took the helm in September 2006 after Redstone, Viacom’s chairman, sacked his longtime lieutenant, Tom Freston, the architect of the MTV networks.

Dauman’s 2006 pay package totaled $11.2 million. Although that covered only four months as chief executive, he also collected a signing bonus in restricted shares as incentive to leave his investment firm for Viacom.

In 2007, revenue at Viacom rose 18% compared with the previous year to $13.42 billion. Net income increased 15% to $1.8 billion. The company’s stock fluctuated throughout 2007, with the A shares ending the year up 7%. Viacom’s A shares are down 8% this year.

Moonves, who has run CBS for more than a decade, collected a total of $36.8 million in 2007, a 28% increase over 2006, despite a downturn in the company’s performance and its stock price. His pay package included nearly $4.5 million in stock awards from prior years.

CBS declined to comment on the disparity.

Viacom and CBS have separate boards and management. The 84-year-old Redstone split his media conglomerate into two companies at the end of 2005.

Redstone in 2007 collected $13.5 million in compensation as Viacom’s chairman, 21% less than the previous year. Redstone’s contract was renegotiated to decrease the cash component of his package.

Redstone also collected $9.7 million for his role as CBS’ chairman, according to CBS.

Viacom took steps in 2007 to improve its performance. Ratings improved for major cable channels, and Paramount’s acquisition of DreamWorks SKG produced a string of hits, led by “Transformers” and Jerry Seinfeld’s “Bee Movie.”

--

meg.james@latimes.com