Paramount sets terms for Bob Bakish’s exit package

Paramount has announced the terms of Bob Bakish’s exit package after the chairman resigned earlier this week.

Accordingly an SEC filing As of Friday, Bakish will remain with the company as a senior advisor through Oct. 31 to support the transition. The end of his employment relationship is considered “termination without good cause”.

During the transition period, he will receive a monthly base salary of $258,333.33. He will also continue to be eligible to receive a prorated bonus for 2024, calculated based on his length of service until his departure from the Company, and will continue to vest in any outstanding stock awards in accordance with their terms.

“During the transition period, the parties acknowledge and agree that in no event will Executive’s level of performance for the Company fall below 20% of the average level of performance provided by Executive during the immediately preceding 36-month period,” it said Submission.

Bakish will also continue to be eligible for enhanced severance benefits under the Company’s Executive Change in Control Severance Protection Plan in the event of a change of control occurring within six months of his exit date, provided that he agrees that his severance multiplier shall be 2. 5 times and its performance The continuation period is then 30 months.

Per Paramount’s latest proxy statementBakish will receive an estimated $48.5 million severance package, including $6.2 million in salary continuance and other cash compensation, $24.8 million in annual bonus continuation and $83,913, as part of a non-qualified change of control termination $25,000 in medical, dental and life insurance continuation includes insurance, $25,000 in outplacement assistance and $17.38 million in total acceleration/continuity of equity awards.

In the event of a qualified termination of the change of control, this package would be $64.03 million, including $9.3 million in salary continuation and other cash compensation, $37.2 million in annual bonus continuation payments and $127,670, according to the proxy filing in continuing medical, dental and life insurance payments, $25,000 in outplacement support and $17.38 million in total acceleration/continuity of equity awards.

In addition, he will be reimbursed for up to $100,000 of documented legal fees incurred in connection with his departure from the Company and the negotiation of the Agreement within 20 days of Paramount’s receipt of written documentation of such fees and in in any case by April 30, 2025.

Following Bakish’s resignation, Paramount established a CEO’s office, which is currently developing a long-term strategic plan for the company.

The CEO’s Office consists of CBS CEO and President George Cheeks, Showtime/MTV Entertainment Studios and Paramount Media Networks CEO and President Chris McCarthy, and Paramount Pictures and Nickelodeon CEO and President Brian Robbins. According to Friday’s filing, the board named McCarthy “interim chief executive officer.”

“It’s a really difficult and challenging time,” Cheeks said this week during a press conference with Amy Reisenbach, president of CBS Entertainment. “You read articles every day. But I think the good thing about this team is that we all came together and said, “We can only control what we can control.” What we can control is helping to create great shows and hit shows and to be number one. I’m blown away by this team every day, especially now with all the noise out there – not just at this company, but across the industry. To me, it’s just amazing how well we all coordinated and came together and focused on what we do every day.”

Bakish’s exit terms come as the independent special committee of Paramount’s board has informed Skydance Media that the exclusive window for merger talks will expire before Friday evening’s deadline.

In addition to Skydance, Sony Pictures Entertainment and Apollo Global Management have submitted a non-binding, joint cash offer of $26 billion for Paramount. Through this deal, Sony would take a majority stake and operational control, while Apollo would take a minority stake. However, due to restrictions related to foreign ownership, such a deal would likely be scrutinized by regulators.

Any deal must be approved by the committee. Last month, four board members — including three who served on the committee — said they would not seek re-election at Paramount’s June 4 annual meeting.

A person familiar with Redstone’s thinking told TheWrap that she is open to finding a deal in the best interests of Paramount shareholders and supports the committee reviewing the Sony-Apollo offer.

Shares of Paramount, which closed at $12.88 a share on Friday, rose more than 2% in after-hours trading. The company has $14.6 billion in long-term debt and reported a market cap of $9.05 billion as of Friday’s close.