Dauman Asserts Right to Resign at Viacom

Lawyers for Viacom CEO Philippe Dauman and COO Tom Dooley sent letters to the company noting that moves by Sumner Redstone’s National Amusements could constitute “good cause” for them to resign under their employment contracts.

Dauman and Dooley said they do not believe a valid “good cause,” has occurred, but are reserving their rights.

Related: Viacom Blasts Redstone Firm for Opposing Paramount Sale

National Amusements has moved to remove Dauman and other Viacom directors. The directors have challenged the moves in court, charging that they are invalid because the 93-year-old Redstone, who controls Viacom and CBS, is under the undue influence of his daughter Shari Redstone.

The Redstones and Dauman are battling for control of Viacom and Redstone’s media empire.

Related: Herzer Loses Bid for New Redstone Trial

The letters, disclosed in SEC filings Monday, say that Dauman and Dooley are “highly engaged in overseeing Viacom’s operations and [are] committed to pursuing and executing Viacom’s strategic play for the duration of [their] employment agreements.” They add that the executives want to avoid waiving their rights under the agreement.

They note that June 16, when Redstone notified Viacom of his intention to remove the directors, could be when the executives had “good reason” to terminate the agreement, if it is upheld by the courts. The earliest date for an effective resignation would be August 15 — 31 days after Redstone’s removal order.

Related: Viacom Director Salerno Urges Delaware Court to Proceed

Resigning for “good reason” would likely bring the executives higher separation payments than resigning under other circumstances.

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.