Viacom announced Wednesday that compensation for Executive Chairman Sumner Redstone declined 85 percent to $2 million for fiscal 2015, Reuters reported. That is in sharp contrast to Redstone’s total compensation for 2014, which was $13 million.
While Redstone’s salary was unchanged in fiscal 2015, he became ineligible to receive a bonus beginning in 2015 due to reduced responsibilities, resulting in a compensation decline, according to the media company. The 92-year-old has been ineligible to receive an annual equity award since fiscal 2012.
The bonus for Viacom’s chief executive, Philippe Dauman, also declined 30 percent, to $14 million, in fiscal 2015, according to a news release from the company. However, his contractually provided salary and annual equity award were roughly unchanged.
The disclosure came one day after a shareholder lawsuit and an activist investor's report condemned the company for the amount it paid Redstone despite concerns about how his health has impacted his ability to take part in decision-making and for paying Dauman one of the industry’s richest compensation packages in the face of Viacom’s tumbling market value, the Wall Street Journal reported
While Viacom did not cite specific reasons for the reductions, the company has experienced turbulent conditions in recent months, Variety reported. Ratings have plummeted at a number of its flagship operations, it underwent a restructuring charge of $784 million early last year and cut hundreds of jobs across its cable networks. The company’s shares are down 40 percent over the past year as well, according to the Wall Street Journal.