CBS Corp. on Friday provided more information about its employment agreement with CEO Les Moonves, which offers to set up a production company for him so he can continue to create hit shows for the network after he steps down from that post.
The company said that the agreement "provided Mr. Moonves incentives to continue to provide certain services to the company following the expiration of his employment agreement including an inducement to enter into a production agreement." Moonves' current agreement keeps him as president and CEO of CBS until February 22, 2015.
Moonves has not yet agreed to enter the production deal, the
That production agreement calls for a four-year term, during
which CBS will invest up to $3 million per year for staffing, infrastructure
and to secure rights to projects he wants to develop. Moonves will also receive
a fixed fee of $1.5 million per year for his exclusive services.
Moonves, who led the development of hits including E.R. and Friends when he ran Warner Brothers Television before joining CBS, will
also receive fees for producing projects accepted by CBS and compensation based
on how much money those project generate.
Moonves will be required to submit a minimum number of
projects per season and CBS will be required to order three series over the
four-year term of the agreement, the company said. Each series ordered will be
subject to then current CBS license fees and will be on the most favorable
terms of any other deals between the company's CBS Studios unit and its profit
participants during the term.
If CBS does not order the minimum series commitment, Moonves
will be entitled to receive penalty payments at the conclusion of the term, the
also would get a first look at any movie project Moonves develops under the