Thursday, December 13, 2007
Big Bucks Boss
"While striking writers and Hollywood studios are still negotiating a contract, CBS Corp. Chief Executive Officer Leslie Moonves has a honey of a new one.
Here's what Moonves, 58, is getting in the agreement that runs through October 2011:
A base salary of $3.5 million.
A target bonus of $10.5 million, three times his salary. That's what Moonves gets essentially for showing up. There could be more if he performs, though nothing is specified.
An option covering 5 million shares.
An annual grant of free shares worth $7.6 million on each of four grant dates during his contract. To earn them, Moonves will have to achieve a performance target for budgeted free-cash flow.
A make-whole provision so Moonves doesn't face the higher income tax that New York state and New York City levy compared with California. That allows Moonves to spend whatever time he wants at his company's New York headquarters and not suffer any monetary consequences compared with spending all his time at CBS in California.
For this, Moonves isn't required to work more than five days a month and eight hours a day. Assuming he works the maximum hours, his pay rate, including cash and the current stock price, would be a lovely $9,800 an hour."