CBS Corp. said that it revised the compensation for Executive Chairman Sumner Redstone to more closely reflect the performance of CBS Corp. stock. Under the new agreement, which kicks in this year, Redstone’s salary will be reduced from $1.75 million annually to $1 million, his deferred compensation ($1.3 million a year) eliminated, and his target cash bonus downgraded from $6.1 million to $3.5 million a year.
Redstone will instead receive an annual award of stock options having a grant-date value of $3 million and performance share units valued at $3 million.
The deal mirrors Redstone’s recently revised pay package with Viacom, for which he also serves as executive chairman.
Redstone seemed pleased with the deal. “The pay-for-performance model is one I have long championed, as it more closely aligns executive compensation with the returns the company generates for its shareholders,” he said. “I want to thank the Board and the Compensation Committee for making this prudent decision.”