Viacom Paid 160M To 3 Execs In '04

From Yahoo News -

Viacom Inc., the media conglomerate that owns CBS, MTV and VH1, paid its chief executive Sumner Redstone $56 million last year, a 58 percent increase over the year before, even though the company's stock price fell 18 percent in 2004.

Viacom also posted a net loss of $17.5 billion for 2004, weighed down by multi-billion dollar charges to write down the value of its radio and outdoor advertising portfolios as well as its video rental business, Blockbuster Inc., which it has since split off to shareholders.

In addition, Viacom also awarded rich pay packages to Tom Freston and Leslie Moonves, who where named last year to be co-presidents and co-chief operating officers of Viacom following the departure of former chief operating officer Mel Karmazin.

Viacom is proceeding with plans to split itself into two companies, which Freston and Moonves are expected to lead. Both Freston and Moonves each received compensation packages last year that were worth $52 million. Comparable amounts were not available from the year before, when both executives held lower posts.

According to Viacom's annual proxy statement, which it released in a securities filing Friday evening, Redstone received a salary of $4.97 million last year, along with a bonus of $16.5 million and stock options valued at $34.4 million.

Freston received a salary of $4.2 million, a bonus of $16 million and stock options worth $32 million. Moonves took home a salary of $5.8 million, a bonus of $14 million and stock options worth $32 million.

In total, the three executives received about $160 million in compensation in 2004.

Even in the world of media conglomerates, which are known for hefty pay packages, Viacom's compensation to its top executives stood out. Earlier this month Time Warner Inc., whose stock rose 8 percent last year, disclosed that it paid its CEO Dick Parsons a total of $16.2 million last year, up 17 percent from 2003.

"If you're looking for pay for performance, you better go someplace else, because you're not going to find it at Viacom," said Patrick McGurn, executive vice president at Institutional Shareholder Services, a firm that advises major investors on corporate governance and other issues.

"They're not paying one CEO, they're paying three, in essence," McGurn said. "You're getting one for the price of three."

A company spokesman did not immediately return a call seeking comment.

Viacom is planning to announce its first-quarter earnings Tuesday.