As a long-time fan of Paramount Global and its illustrious history, I can’t help but feel a mix of emotions upon learning about the generous compensation packages for the co-CEOs. On one hand, it’s heartening to see these industry veterans secure their financial futures amidst the impending merger with Skydance Media. After all, they have played significant roles in shaping the company we all love and enjoy.
The high-ranking officials within Paramount Global’s “Office of the CEO” are being offered an enhanced compensation package to remain with the company throughout the uncertain period leading up to its anticipated merger with Skydance Media, which is not projected to be finalized until the first half of 2025.
The trio consisting of George Cheeks, Chris McCarthy and Brian Robbins, who serve as co-CEOs at Paramount, were earlier awarded a 2X multiplier of their unstated yearly salary, along with additional perks. Now, in a securities filing made public on Tuesday, the company has revealed that this pay increase will persist throughout their employment, even if they no longer belong to the “Office of the CEO.
Additionally, the recently submitted financial disclosure reveals that the three individuals were granted additional company shares and bonuses in the form of Restricted Share Units worth approximately $3 million.
The Compensation Committee at Paramount has ensured that the co-CEOs will continue to receive their remuneration if they choose to depart from the company, even in cases of demotion. According to the submitted documents, if these executives are given tasks or responsibilities that significantly contradict their role as co-CEO, or there’s a substantial reduction in their position or duties, they can opt to resign for “good cause” and retain the existing payment scheme.
Following several rounds of discussions, Shari Redstone, the majority shareholder of Paramount Global, sealed a merger deal with David Ellison and Skydance Media in July. This union, which is set to occur, will combine the maker of Top Gun: Maverick with the proprietor of Paramount Pictures, CBS, Showtime, Nickelodeon, MTV, Paramount+, and other assets. The combined entities anticipate that this new entity, known as New Paramount, would be valued at approximately $28 billion.
After Bob Bakish, Paramount’s chief, was removed in April, two new co-CEOs were appointed instead. In 2023, Bakish received a remuneration package totaling $31.3 million, which was slightly less than what he had earned the previous year. Upon completion of the Skydance deal, Larry Ellison will assume the role of CEO and Jeff Shell, previously an executive at NBCUniversal, will become president.
In the course of reorganization, the joint CEOs have proposed a strategy to achieve $500 million in cost reductions across the company, divest from non-essential assets, and reduce 15% of its U.S. workforce by year’s end. (By September, they stated that the layoff process was approximately 90% finished.)
The cost-cutting strategy additionally involved closing down Paramount Television Studios, a company responsible for producing shows like Amazon’s ‘Reacher’ and Apple’s ‘Time Bandits’. These productions will now shift to their sibling label, CBS Studios.
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2024-10-16 00:25