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The old contract required a supermajority â€â€? 14 of 18 votes He will receive a bonus expected to be $6 But Karmazin can also leave the company if his decision on operating matters is overruled 65 million this year with a bonus for each subsequent year of at least 10 percent more than for the preceding year "Should a handful of the old CBS directors decide to step down, then the power would clearly shift back to CEO Sumner Redstone and the former Viacom executives," Prudential Securities analyst Katherine Styponias said in a research note The new contract, however, gives Redstone more say-so in Karmazin's decisions than before Shares of Viacom, which owns CBS, Showtime and numerous other media assets, closed up $1 Previously, Karmazin had free rein in that area Karmazin to Stay at Viacom Mar 20, 6:30 PM EST Viacom Inc In the event that Redstone is no longer chief executive and Viacom does not name Karmazin as his successor, Karmazin can leave the company The forecast reflects the anticipated costs of war coverage, and the effects a conflict might have on advertising revenues Also Thursday, Viacom announced a new contract for Redstone, which does not have an expiration date 6 billion in revenues, reversing a $224 million loss in 2001 Viacom's board was eager to keep Karmazin â€â€? whose contract was set to expire at the end of the year â€â€? aboard, but Redstone reportedly had concerns that Karmazin was becoming too powerful New York-based Viacom had 2002 profits of $726 million on $24 In 2000, base salary for both executives was $2 Previously, operating matters were at Karmazin's discretion Furthermore, Karmazin reports directly to Redstone and the firing or the hiring of replacements for certain senior executives must be agreed upon between him and Redstone Karmazin will receive a base salary of $1 million per year, according to documents Viacom filed Thursday with the Securities and Exchange Commission 94, or 5 percent, at $40 Finally, under the new contract, Karmazin can be fired by a majority of the board Analysts questioned, however, how secure Karmazin's future was, noting the terms of his new contract considerably rein in his powers and could make him more vulnerable should the composition of Viacom's board change Redstone will have full and final decision-making power over corporate policy and strategy including acquisitions, partnerships and ventures 65 million The stock had suffered in recent months amid reports of increased tensions between Karmazin and company chairman and chief executive Sumner Redstone in recent months According to SEC's most recent filing on compensation, both Redstone and Karmazin, earned a base salary of $3 Last month, executives predicted they would deliver mid-single digit revenue growth and mid-teen growth in earnings per share in 2003 84 on the New York Stock Exchange The CBS merger brought many great assets together under the Viacom name, and Mel has done a masterful job of integrating those businesses and operating them at peak performance "This more than anything could affect the balance of power between Sumner and Mel, above and beyond what is stipulated in the new contract " Karmazin returned the favor in the company news release, calling Redstone a great visionary 02 million and bonus was $15 million 3 million and a bonus of $12 million in 2001 Prior to the 2000 merger between Viacom and CBS, Karmazin was president and chief executive officer of CBS I look forward to continuing our successful partnership and taking Viacom to new heights in the years to come Still, Wall Street was pleased with the news, a reflection of the widespread belief that Karmazin is key to the success of Viacom Both will receive deferred compensation this year of $2 president and chief operating officer Mel Karmazin announced Thursday he will stay at the media giant for another three years, ending months of speculation about his future and sending the company's stock up sharply In a statement Thursday, Redstone warmly praised Karmazin Under the old contract, Karmazin automatically became CEO Both will also receive no less than $5 million of term life insurance "I am very pleased that Viacom will continue to benefit from Mel's leadership and talent For each calendar year thereafter, his bonus will at least equal that of Karmazin Redstone will receive the same base salary as Karmazin, with a bonus also expected to be $6 He can overrule Karmazin's decision on operating issues only after prior consultations with the board at a special meeting " Redstone has been Viacom's chairman since 1987 99 million, with increases throughout the length of the contract This will be shown in court, and we will be able to put this horrible time behind us us Michael Jackson Launches New Web Site Nov 24, 6:25 AM EST Michael Jackson, addressing his fans directly via a new Web site, says the child molestation allegations made against him are "predicated on a big lie" and he will be exonerated in court The entertainer's spokesman, Stuart Backerman, had said last week that Jackson was putting the site together so he could communicate with the news media and fans mjnews We intend to try our case in the courtroom, not in the public or the media We will not provide running commentary on every new development or allegation du jour " "As you know, the charges recently directed at me are terribly serious," Jackson said in the six-paragraph statement "With few exceptions most of them are simply filling a desperate void in our culture that equates visibility with insight," he said Jackson said his attorneys have advised him to say little about the matter until it is resolved He also urged people to be skeptical of those representing themselves as his friends or claiming to speak for him Jackson said in his statement that it would serve as a source for "official communications on my case "No doubt, this will be frustrating for all of us," he added " â€â€?â€â€?â€â€? On the Net: http://www "We will not engage in speculation He was released on $3 million bail Authorities have said they expect to file formal charges sometime after Thanksgiving " Jackson surrendered to Santa Barbara County authorities on Thursday after an arrest warrant was issued alleging he committed lewd or lascivious acts with a child under 14 "They are, however, predicated on a big lie |
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