Karmazin's Golden Parachute Worth $35 Million
July 23, 2004

When Viacom reported its second-quarter earnings yesterday, the company also revealed the contract stipulations of its former president. Mel Karmazin was paid $35.4 million in bonuses and salary after he left the entertainment giant in June. The Los Angeles Times reports that the contract was quite unusual, in that Karmazin had guaranteed himself his own payout, and protected him from any interference from Viacom CEO Sumner Redstone or the board of the directors. The contract even let Karmazin decide for himself if his own bosses were interfering with his authority.

Executive compensation expert Graef Crystal told the Times, "This isn't an employment contract, it's a treaty between two sovereign powers.  He really wrote himself a sweetheart deal. He wore a sign 'Do Not Provoke,' like they have over a zoo cage."

Karmazin still holds Viacom stocks and options worth approximately $400 million.  Also revealed in the earnings report was the payout given to former Viacom entertainment group head Jonathan Dolgen.  Dolgen received over $20 million after exiting.

Viacom announced in the report that the two severance payments cut two cents per share from the company's second-quarter earnings.  The company announced its profits rose 14% in the second quarter over the previous year, due mostly to ad sales in television.  There was still a continued slump in the performance of the Infinity radio division.  Overall, Viacom's profits were at $754 million, up from $660 million the year before.

The company also announced new contracts for Redstone and Viacom Co-Presidents Tom Freston and Leslie Moonves.




 
Breaking News
Beasley Media Group Unveils New Format Captains
iHeartMedia Austin Debuts New Spanish Top 40 Station TU 103.1
CBS Radio Officially Names John Farneda MD At WXRT/Chicago
In Brief - May 23, 2017
May 22, 2017
CBS Corporation Extends Chairman/President/CEO Les Moonves
KDMX (102.9 NOW)/Dallas Adds Kannon In Afternoon Drive
Entercom-Charlotte Signs Contract Extension with Matt & Ramona Show
May 19, 2017
Cumulus Media Oxnard/Ventura Names Matthew "Doughboy" Florence PD For KVYB
Westwood One Presents Backstage at the BBMAs
May 18, 2017
iHeartMedia St. Louis Names Maurice DeVoe PD For KMJM (100.3 The Beat)
May 17, 2017
Atlantic Records Promotes Dionnee Harper & Marsha St. Hubert To SVPs of Urban Marketing
Entercom San Diego & Portland Form Partnership With Pearl Jam's Vitalogy Foundation
Vevo Announces New Hires On Original Content Team
May 16, 2017
Universal Music Group & Tencent Music Entertainment Group Enter Stategic Agreement
B96/Chicago To Host Niall Horan, Stream Live Performance
May 15, 2017
Cumulus Reports First Quarter Results
National Radio Hall of Fame Announces 2017 Nominees
Heidi Raphael Named VP/Corporate Communications for Beasley Media Group
Beasley Media Group & jacapps To Debut Customized WRIF iPhone Stickers
May 12, 2017
eQB NOW
Cumulus Media Promotes Troy Hanson To VP/Operations For Chicago Station Group
May 11, 2017
iHeartMedia New Orleans Names Steve McNair Market President
Music News
22 Dead in Explosion at Manchester Ariana Grande Concert
Quick Hits: Iggy Azalea, Newport Folk Festival
It's a Sign of the Times: Harry Styles Debuts at #1
Drake Dominates Billboard Music Awards
Chris Cornell's Wife Issues Statement on His Death
Rocker Chris Cornell Dead at 52
The Entertainment World Remembers Chris Cornell
FMQB Photo Pass: Metallica
Katy Perry Announced as First Judge for American Idol Reboot
Katy Perry Announces New Album Witness, North American Tour
Rapper Logic Debuts Atop Billboard 200
Quick Hits: Beyonce, Kendrick Lamar, Paramore
Jay Z Inks $200 Million Deal with Live Nation
iHeartRadio Streaming Exclusive Harry Styles Station
Jay Z, Chili Peppers & Gorillaz Headlining New York's Meadows Music and Arts Festival
FMQB NOW

Nicki Farag,
SVP of Promotion,
Def Jam Recordings

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!