According to a compensation consultant, Dauman’s exit package could be as much as $90 million.
According to a source who is familiar with the situation at hand, Phillippe Dauman, Viacom Inc.’s CEO and Sumner Redstone, Viacom’s controlling shareholder have resumed their settlement talks.
According to two other sources, the terms of the settlement include allowing Dauman to present his plans which outlines the sale of a stake at Paramount Pictures in exchange for his exit.
Furthermore, in confirmation to earlier media reports, sources have revealed that Tom Dooley, Viacom’s Chief Operating Officer, will replace Dauman on an interim basis.
If the settlement talks were to bear fruit, it would end the on-going litigation in Massachusetts and in Delaware over the battle of the 93 year old’s $40 billion media empire.
Earlier yesterday, the LA Times had reported that settlement talks had in fact accelerated. Furthermore, the Wall Street Journal had also reported, citing sources familiar with the situation, that the one sticking point which remains is the date when the directors would leave Viacom’s board.
Earlier this year in May, George Abrams, Dauman and other board members were removed from Viacom’s board by Sumner M. Redstone. In the event wherein Redstone is either incapacitated or dead, National Amusements Inc. Trust, which has a controlling stake in CBS Corp and in Viacom, would automatically control both companies.
Representatives for National Amusements Inc. and Viacom have declined to comment.
Dauman and Frederic Salerno, a board member who was ejected, had earlier alleged that Shari Redstone, Sumner Redstone’s daughter, is manipulating her father to take control over the companies.
She has denied those charges. Her spokeswoman also declined to comment on the matter.
According to information available in regulatory filings, Dauman’s term ends in 2018. Under the terms of the contract, he is eligible to receive $72 million in cash if he is terminated without cause or if he resigns “with good reason”.
According to a Equilar, a compensation consultant, Dauman could potentially receive $90 million in severance.
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