News

Viacom’s Dooley Poised for $29M Payday

6/07/2010 6:40 AM Eastern

Freshly named to the newly created position
of chief operating officer, long-time Viacom executive
Tom Dooley’s new employment agreement could reap the
former chief financial officer a substantial windfall over the
next five years of the pact, according to Securities and Exchange
Commission documents.

Dooley was named to the newly created position of COO on
May 28. The former chief financial officer also will retain that
position until a replacement is named.

According to the document filed May 29, Dooley’s base salary
will remain unchanged at $2 million per year. He will receive
an 18.8% increase ($1.5 million) in his annual performance bonus
target to $9.5 million from $8 million.

The real money is to be made through stock awards. According
to the document, Dooley received 800,000 performance restricted
stock units on May 27, which vest in four installments
over the next five years. Based on Viacom’s closing price on
May 27 ($37.64 each) those PRSUs could be worth $30.1 million
over the life of the deal, or about $6 million per year.

In addition, Dooley will receive on June 2, options to purchase
1.6 million Viacom Class B shares. Based on the May 28
close of $36.94 each, those shares could be worth another $59.1
million over the life of the deal, or $11.8 million per year.

All totaled, Dooley could reap about $29.3 million per year,
or about 8.4% better than the $27.03 million he received in total
compensation in 2009.

September