Viacom’s Top Two Execs Earn Nearly $34 Million Each in 2002

Viacom Inc.’s two top executives have been sharing power since merging their companies three years ago. Now they’re sharing in the spoils.

Chairman Sumner Redstone and President Mel Karmazin -- who under contract make identical amounts -- both earned nearly $34 million last year, including a $16.5-million bonus for each, according to the company’s proxy statement filed Monday with the Securities and Exchange Commission. Their bonuses for 2001 were $12 million each.

Separately, Viacom revamped its board as part of an effort to make it more independent. CBS Chief Executive Leslie Moonves and Redstone’s son, Brent, gave up their seats. Also leaving are investment advisor Ken Miller and technology executive George H. Conrades.

Replacing them will be former Health, Education and Welfare Secretary Joseph A. Califano Jr., former Defense Secretary William S. Cohen and Wall Street’s Alan C. Greenberg. The moves cut Viacom’s board size to 17 directors, 11 of them independent.

The pay hike for Redstone and Karmazin rewards both for making New York-based Viacom -- which owns such assets as Paramount, CBS and MTV -- the top performer among big media companies last year, according to the proxy statement.

Last year, Viacom’s stock dropped 7%. However, revenue for the year was up 6% to $24.6 billion.

In addition to the bonuses, Redstone and Karmazin received $3.6 million in salary, up from $3.3 million in 2001.

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Associated Press was used in compiling this report.