Ousted Viacom CEO to receive huge payout

NEW YORK - Ousted Viacom Chief Executive Tom Freston will receive as much as US$84.8 million ($129.4 million) in severance, accrued salary and restricted stock payments, the company said in a regulatory filing this morning.

Freston, who was pushed out by Viacom Chairman Sumner Redstone in September for the media company's laggard stock price, will be paid US$58.9 million in severance, Viacom said in its filing with the US Securities and Exchange Commission.

"It's on the large side of the pay for failure packages," said Pat McGurn, special counsel at shareholder advisory firm Institutional Shareholder Services. He noted that payout packages have been declining.

Viacom will also pay US$7.4 million in deferred compensation and US$5.7 million for the balance of his 401K plan, according to the filing.

Freston, who has signed on to be a company advisor, will also earn US$1 million a year for three years.

In addition, Freston also received 90,141 restricted shares and other stock options which vested on his termination date, amounting to about US$10 million.

- REUTERS