By Keach Hagey
Viacom Inc. Chief Executive Philippe Dauman earned $44.3 million
in total compensation in the fiscal year ended Sept. 30, a 19.2%
raise from the previous year, according to a regulatory filing.
The compensation package was awarded after a fiscal year in
which the media company's share price fell 8%. Viacom, owner of
cable channels such as Nickelodeon, MTV and Comedy Central, has
faced ratings trouble at its biggest networks and pressures from
small cable operators.
Mr. Dauman's compensation is tied to a variety of performance
goals, including operating income and free cash flow, the company
said in the filing. Viacom's operating income rose 6.4% in fiscal
2014 to $4 billion.
Mr. Dauman, who has been at the helm of the company since 2006,
is regularly among the highest-paid U.S. CEOs. In fiscal 2014, he
earned a salary of $3.9 million and a bonus of $20 million,
according to the company's proxy statement. Other compensation
consisted of stock and option awards. Mr. Dauman's total
compensation for 2013, including option awards and incentive
compensation, was valued at $37.2 million, including a base salary
of $3.5 million.
Sumner Redstone, the chairman and controlling shareholder of
Viacom, received total compensation of $13.2 million, a 64% drop
from what he received the previous year. The change was due to Mr.
Redstone's exercising of previously awarded stock option
equivalents. Mr. Redstone's salary grew modestly to $1.9 million in
2014 from $1.8 million the previous year.
Earlier this month, Viacom extended Mr. Dauman's contract by two
years, guaranteeing his place at the top of the company through
2018.
In response to sharp ratings declines at many Viacom networks,
Mr. Dauman has pledged to increase the percentage of ad sales that
aren't dependent on traditional ratings from measurement specialist
Nielsen to 50% in the next three years, from 30% in the last fiscal
year.
Write to Keach Hagey at keach.hagey@wsj.com
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