Viacom Inc. is considering naming a lead independent director, who most likely will be one of the company's current board members,
Reuters reported.
Viacom currently has seven directors who are classified as independent, the article said.
In February, Viacom named CEO Philippe Dauman as executive chair to replace 92-year-old Sumner Redstone. Redstone's daughter Shari objected to the board's election of Dauman, saying the chair needed to be an “independent voice,” the Reuters report noted.
Kevin McManus of independent proxy adviser Egan Jones told Reuters that it has become standard corporate governance practice for there to be a lead independent director when a company has combined the CEO and chair positions.
Viacom has been criticized for increasing Dauman's compensation as the company's shares have fallen. Proxy adviser Institutional Shareholder Services recommended that investors withhold support for six Viacom directors at its annual meeting, citing their oversight of executive compensation and other concerns, the Reuters article said. (Source: Reuters, March 16, 2016.)
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