Paramount Global (PARA, Financial) has announced significant changes to the compensation structure of its co-CEOs, as approved by the Compensation Committee of the company's Board of Directors on October 8, 2024. These adjustments are aimed at reinforcing the leadership team and ensuring alignment with the company's strategic goals.
Chris McCarthy, who serves as the President and Chief Executive Officer of Showtime/MTV Entertainment Studios and Paramount Media Networks, will see a continuation of his enhanced target annual cash bonus. Initially set to increase by 100% of his annual base salary under the Short-Term Incentive Plan, this bonus will now apply for the duration of his employment with Paramount Global, irrespective of his role within the Office of the CEO. This decision ensures that Mr. McCarthy's bonus opportunity remains intact, providing a stable incentive structure based on the achievement of pre-established performance goals.
In addition to the cash bonus, Mr. McCarthy has been awarded Restricted Share Units (RSUs) valued at $3.0 million. These RSUs, granted under the company's Amended and Restated Long-Term Incentive Plan, will vest over a three-year period, beginning on the first anniversary of the grant date. This equity-based compensation aligns Mr. McCarthy's interests with those of the shareholders, promoting long-term value creation.
Furthermore, any significant changes to Mr. McCarthy's duties or responsibilities that are inconsistent with his current role as co-CEO will allow him to resign for "good reason," entitling him to receive severance payments. This provision ensures that Mr. McCarthy's leadership role is protected, maintaining stability within the executive team.
Similar compensation adjustments have been approved for George Cheeks, President and Chief Executive Officer of CBS, and Brian Robbins, President and Chief Executive Officer of Paramount Pictures and Nickelodeon, in their respective roles as co-CEOs. These changes reflect Paramount Global's commitment to retaining top executive talent and driving the company's strategic initiatives forward.
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