Paramount Global, parent of the CBS and Nickelodeon television networks, adopted a severance plan for its top executives in the event they are terminated within two years of an acquisition of the company.
The change-in-control plan put in place by the company’s compensation committee applies to chief executive officer Robert Bakish, finance chief Naveen Chopra and other officials, according to a filing Friday.
Like all media companies, Paramount is going through a costly transition as more movie and TV customers cancel cable service and get their entertainment online. Last quarter, Paramount reported revenue from traditional TV networks fell 7.7% to $4.57 billion, with advertising down 14%. Fees from cable operators were unchanged. That decline was offset by gains from the Paramount+ streaming service and filmed entertainment.
Shares of Paramount were little changed in extended trading after closing at $13.19 in New York. The stock has declined 22% this year.
Paramount is controlled by its chairperson, Shari Redstone, whose family company National Amusements holds a majority of the voting shares.
The severance plan, adopted on November 16, lays out compensation for the top officers if they are terminated without cause or resign for good reason following a change in control of the company.
It calls for the executives to be paid a pro-rata portion of their annual target bonus as well as a multiple of their base pay and bonus. The plan also includes extended health benefits and accelerate vesting of stock awards.