Paramount Grants Co-CEOs Change-in-Control Benefits, Cash Bonuses Amid M&A Speculation
By Todd Spangler, NY Digital Editor
Introduction
As Paramount Global (NASDAQ: PARA) navigates a potential merger or sale, the company has granted three executives in its “Office of the CEO” enhanced severance benefits and cash bonuses.
Change-in-Control Severance
George Cheeks (President and CEO, CBS), Chris McCarthy (President and CEO, Showtime/MTV Entertainment Studios and Paramount Media Networks), and Brian Robbins (President and CEO, Paramount Pictures and Nickelodeon) are now designated participants in Paramount Global’s Executive Change in Control Severance Protection Plan.
In the event of a merger, sale, or termination within two years after such a transaction, these executives will receive severance payments equivalent to:
* Two times their annual base salary
* Two times their annual target bonus amount
* Six months of COBRA health insurance coverage
* Vesting of all unvested stock and other equity awards
Cash Bonuses
Additionally, each of the three co-CEOs has been granted an annual target bonus of $2.75 million, prorated to the portion of the current fiscal year they serve in the Office of the CEO.
Strategic Vision and Cost-Cutting
Despite ongoing M&A speculation, the co-CEOs have outlined a strategic vision for Paramount Global’s future, including plans to:
* Cut upwards of $500 million in annual costs
* Explore a joint venture for Paramount+
* Consider selling certain assets
Employee Concerns and Town Hall
Amid ongoing speculation, Paramount’s co-CEOs had planned a town hall for June 5 to address employee concerns, but it was rescheduled to June 25 due to “ongoing speculation regarding potential M&A.”
HR Chief Extends Agreement
Separately, Paramount has extended the employment agreement of Nancy Phillips, Executive Vice President and Chief People Officer, through June 4, 2027. Under the new agreement, Phillips receives:
* Annual base salary increase to $1 million
* Target annual cash bonus increased to 120% of annual base salary
* Increased target value of annual equity compensation grants to $1.8 million
Conclusion
Paramount Global’s Executive Change in Control Severance Protection Plan and cash bonuses for its co-CEOs demonstrate the company’s commitment to executive retention amidst ongoing M&A speculation. As the company navigates this potential transition, the co-CEOs have emphasized their commitment to implementing strategic initiatives and addressing employee concerns.