CBS Corporation (NYSE:CBS)’s CEO Les Moonves had his contract extended till June 2019. This came as surprise news to many, since Moonves is already 65 years old and the owner of CBS Corporation (NYSE:CBS), Sumner Redstone is 91 years old. Moonves last contract with CBS Corporation (NYSE:CBS) was signed in 2012 and the new contract extended his tenure by two more years till 2019. Bloomberg’s Betty Liu, Pimm Fox and Julie Hyman talked on Bloomberg TV about this announcement.
“CBS’s Les Moonves has signed on to stay as America’s most watched network till 2019, two years longer than his previous contract,” Liu reported.
Liu added that his salary will remain the same, which is around $3.5 million. She also said that he will have the same annual performance bonus and stock options. His overall compensation for 2013 was more than $66 million. She also said that Moonves is currently the highest paid executive in the media industry.
Liu also pointed out that Moonves is 65 years old but still a lot younger the owner of CBS Corporation (NYSE:CBS), Redstone. Fox feels that there is an interesting deal associated with the new contract that Moonves has signed with CBS Corporation (NYSE:CBS).
He added that there is a production deal associated with his new contract, which states that Moonves will serve as ‘Executive Advisor’ for CBS Corporation (NYSE:CBS) after his tenure as CEO of the company and Moonves also has an option to create a production company under CBS Corporation (NYSE:CBS).
So the new contract allows Moonves to create and own a production company when he is almost 70 years old and associate it with CBS Corporation (NYSE:CBS). Fox thinks that this is an interesting proposition of the deal for Moonves.
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