CBS said it is giving acting CEO Joe Ianniello a raise as part of the contract extension announced earlier this week, and will also give him a lump sum payment for staying and another if he leaves.
Ianniello was named acting CEO last year after Les Moonves was forced out amid a battle with the Redstone family, which owns a controlling interest in CBS, and allegations of sexual misconduct against Moonves.
This week, CBS’s board said it suspended its search for a permanent CEO and extended Ianniello’s contract. The search for a new CEO at CBS is complicated because of growing speculation the company will be combined with Viacom, which is also controlled by the Redstones. There are reports that Viacom CEO Bob Bakish has an inside track to run the companies if they merge.
As part of his extension, CBS said it raised Ianniello’s salary to $3 million a year and increased his target bonus to 500% of his base salary. He will also get a cash lump-sum payment of $5 million, according to documents filed with the SEC.
If someone else is named CEO or there is another “corporate event,” such as a merger or change of control, resulting in Ianniello no longer being acting CEO, Ianniello will become a consultant to the company for up to 90 days. During that period he’d continue to receive his salary and bonus.
If Ianniello stops being acting CEO, other than for cause, he will receive $10 million. The calculation of the rest of his severance pay will be adjusted so that he received three times either his target bonus or actual bonus, whichever is higher.
He also gets office space, administrative support, a car and driver and security services for up to two years, which is worth up to $2.75 million.