Philippe Dauman has resigned from his position as CEO of Viacom Inc., and five new members have been named to the company’s board. The moves are part of a settlement agreement to end a legal battle between Dauman and other longtime directors and controlling shareholder Sumner Redstone.
Dauman and Viacom have withdrawn two lawsuits alleging that Redstone, 93, was not competent to manage his affairs and was being manipulated by his daughter, Shari Redstone,
Deadline Hollywood
reported.
Thomas Dooley, who had been Viacom’s chief operating officer, will become interim CEO. Viacom’s board will meet in September to determine whether Dooley will remain in the CEO post,
a
Los Angeles Times
report said.
Dauman, who had worked for Redstone since 1986, will receive a $72 million payout, the
LA Times
article said. He will serve as Viacom’s non-executive chairman until September 13, according to the report. Dauman will also be removed from the Redstone family trust and the board of National Amusements, the holding company through which Sumner Redstone controls Viacom and CBS Corp.
Viacom’s board will have 15 members for the next few months. Four veteran directors will likely step down after the company’s annual meeting in early 2017, the
LA Times
report said.
One of the new directors, Eversource Energy chairman Thomas May, is expected to become chairman after September 13,
a
Wall Street Journal
article said.
Under the terms of the settlement, Dauman will have an opportunity to present his plan to sell up to 49% of Paramount Pictures to an outside director. “However, the Paramount proposal must win the unanimous approval of Viacom’s enlarged board, so that won’t be an easy task,” the
LA Times
article said. “Sumner Redstone doesn’t want Viacom to unload such a significant stake in Paramount, which he won in a contentious bidding war in 1994.”
A trial had been scheduled to begin next month in Massachusetts. Testimony would have centered on whether Sumner Redstone was mentally competent or unduly influenced by his daughter Shari when he removed Dauman and board member George Abrams from a trust that will control his shares in Viacom and CBS when he dies or is ruled incompetent, the
LA Times
article said.
The
Wall Street Journal
report said some observers are questioning whether Dooley, who had been Dauman’s right-hand man, is the best choice to lead Viacom into the future.
After the settlement was announced, Sumner Redstone’s granddaughter Keryn Redstone filed a complaint in Massachusetts Probate and Family Court calling the deal a “palace coup.” Keryn wants the court to provide for her to see the settlement agreement and a copy of Sumner Redstone’s family trust, the
Deadline Hollywood
report said.
Sumner and Shari Redstone and National Amusements said they plan to file a motion to dismiss Keryn’s request, the
Deadline
article said. (Sources:
Los Angeles Times
, Aug. 20, 2016;
Wall Street Journal
, Aug.22, 2016;
Deadline Hollywood
, Aug. 22, 2016.)
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