I believe this agreement will give the company and its employees the best opportunity to continue a smooth evolution into the future.
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The final nail in the coffin for Dauman was delivered on June 16, when he was ousted from the board of National Amusements.
He continued: “It has been a privilege to lead Viacom and have the rare opportunity to work side-by-side with so many friends and colleagues to build great brands and implement successful initiatives in the USA and around the world”.
Viacom’s board late Thursday bowed to the demands of Shari and Sumner Redstone, approving a settlement with the family that ends a messy boardroom struggle that had engulfed the company that owns cable TV channels MTV, VH1, Comedy Central, Nickelodeon, BET and the Paramount Pictures movie studio.
On Monday, Shares of Viacom, Inc.
As part of the settlement, Dauman will remain at Viacom as Executive Chairman until September 13, and will be allowed to propose his plans to sell a small stake in Paramount Pictures to the board.
“Management and its board are in upheaval.What better time than right now for a company to make a run at Viacom”. A month later, he moved to drop Mr Dauman and four other directors from Viacom’s board.
Activity at Paramount will be closely watched by the new board which added five new members as part of the settlement agreement.
There is so much to be proud of at this company, and nothing makes me more proud than the people I get to work with every day.
Shari Redstone, the president of National Amusements, said, “We thank Philippe for his many years of dedicated service and the important role he has played at Viacom”. We also welcome the new board members who join us today.
Folta had been with Viacom for more than two decades and, for the past couple of years, has been charged with the likely thankless task of defending Dauman during his feud with Sumner and Shari Redstone.
The Redstone clan has a history of lavish pay for executives.
Under terms of the deal, Dauman will also end his legal battles against Redstone and his daughter, Shari.
The hearing would come before MA probate court judge Geoge Phelen approves the agreement ending litigation over control of the Redstone media empire which includes Viacom and CBS.
At the time Mr Redstone said he had been unhappy with Mr Dauman’s Paramount plan. But more than five years after the enactment of Dodd-Frank rules, CEOs are still walking away with huge severance packages despite poor performance.
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Dauman also led a US$1 billion lawsuit against YouTube over copyright infringement, which ended up with no cash changing hands after a costly and protracted court battle, and was criticised for taking big bonuses as the company’s fortunes wobbled. A deal with a Chinese company, such as Dalian Wanda Group, the world’s largest theater operator, could be such a partner, according to Matt Harrigan, an analyst with Wunderlich Securities.
