EmptyRedstone pay cut
CBS Corp. said Tuesday that it is cutting the salary of executive chairman ad controlling shareholder Sumner Redstone and linking his compensation more closely to its stock price performance and shareholder returns, mirroring a similar recent change at Viacom Inc., which Redstone also controls. CBS also settled shareholder litigation over its compensation practices. CBS is reducing Redstone's annual salary from $1.75 million to $1 million and eliminating $1.3 million in deferred compensation. His annual target cash bonus was cut from $6.1 million to $3.5 million. Redstone will receive an annual award of stock options with a grant-date value of $3 million and an annual award of performance share units with a target value of $3 million. "The pay-for-performance model is one I have long championed, as it more closely aligns executive compensation with the returns the company generates for its shareholders," Redstone said.
Spanish B'cast slips
Shares of Spanish Broadcasting System Inc. fell 8.6% on Tuesday after the Spanish-language media firm reported weaker-than-expected fourth-quarter results and forecast lower radio revenue and a TV segment operating loss for its first quarter. Spanish Broadcasting posted a fourth-quarter profit before income taxes and discontinued operations of $883,000, down from $4 million a year ago. Revenue fell 5% to $44.4 million. The stock closed at $4.25.
Two more Swedish funds on Tuesday rejected a bid by Time Warner Inc.'s AOL unit for Internet advertising group Tradedoubler. This may put pressure on AOL to extend its bid deadline from today or maybe even increase its offer, observers said. One of the funds is AFA Insurance, Tradedoubler's third-largest shareholder with a 4.8% stake.