Viacom’s Top Two Executives Reserve Right to Resign, Look to Protect Millions in Pay

In a move to protect tens of millions of dollars in potential severance pay, Viacom Inc. CEO Philippe Dauman and COO Thomas Dooley have reserved their legal right to resign “with good reason,” reports Reuters. “The move is the latest in the battle for control of Viacom, part of Sumner Redstone’s $40 billion media empire, which has caused a rift between Redstone, backed by his daughter, and his long-time lieutenant Dauman,” notes the wire service. Dauman and Dooley have sent letters reserving the right to resign if a judge issues a final order approving Redstone’s action to remove Dauman and four other Viacom board members. Executives are generally entitled to receive severance pay if they resign with good reason, but not if they are ousted. “Dauman and Dooley’s employment agreements state they can resign with good reason if there are changes to Viacom’s board,” notes Reuters. “Under their employment agreements, Dooley could receive more than $30 million in severance compensation and Dauman could receive more than $90 million.”

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