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
BIA/Kelsey: Digital Revenues for U.S. Radio Continue to Rise
Jeff Lyons Joins Cumulus As Promotions/Marketing Director for Appleton-Oshkosh, WI
March 27, 2017
Dennis Reese Named SVP/Promotion At RCA Nashville
Cumulus Media Brings Hot AC To Savannah, GA Launches WZAT (102.1 The Sound)
In Brief - March 27, 2017
March 24, 2017
Ryan Seacrest Announces KIIS FM's Wango Tango 2017 Lineup
WMGC (105.1 The Bounce)/Detroit Adds “Big Boy” To Mornings
107.1 The BOSS/New Jersey Announce Air Talent Line-Up
March 23, 2017
iHeartRadio Surpasses 100 Million Users
Westwood One Promotes Mark Wildman to EVP/Strategic Partnerships
March 23, 2017
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
iHeartMedia Names Geoff "G-Off" Owens PD For KXJM/Portland & KUBE/Seattle-Tacoma
c3 & FMC Statement: Elimination of the NEA, NEH, and CPB Indefensible, Shameful, and Senseless
iHeartMedia Introduces SmartAudio
Condé Nast Acquires Pop2Life And Ribyt
Music News
Drake's More Life Sets Billboard 200 Streaming Record
Quick Hits: Halsey, Snoop Dogg / 2Pac, Pitbull / Wrestlemania, Paul McCartney, Phoenix, Matchbox Twenty & Counting Crows
Quick Hits: Kendrick Lamar, Iggy Azalea, Vans Warper Tour
Quick Hits: Gorillaz, Kaaboo Festival, March Madness
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
Ed Sheeran Earns Biggest Debut Week of 2017
Quick Hits: Drake, Pearl Jam, Fifth Harmony
FMQB NOW

Sam Milkman, EVP
Coleman Insights

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!