Viacom names CEO Dauman as chair; Shari Redstone opposed
The ailing, 92-year-old Redstone will become chairman emeritus of Viacom, a day after it was announced that Redstone stepped sown as executive chairman of CBS Corp.
New York: Viacom Inc.’s board of directors named CEO Philippe Dauman as executive chairman on Thursday, replacing founder Sumner Redstone, overriding calls for an independent board chief from Redstone’s daughter Shari, who voted against Dauman.
The ailing, 92-year-old Redstone will become chairman emeritus of Viacom, a day after it was announced that Redstone stepped sown as executive chairman of CBS Corp., replaced by CEO Leslie Moonves.
Thursday’s decision puts Viacom firmly in the hands of Dauman, a longtime associate of Sumner Redstone. Redstone’s daughter had said in a statement she wanted someone who was not a member of her father’s trust to run Viacom, which would have excluded Dauman.
Sumner Redstone and the rest of Viacom’s board voted in favour of Dauman, and only Shari Redstone voted against him, according to a source close to the company. Viacom said that Shari Redstone turned down the chairman role herself.
The elder Redstone has faced questions about his health and leadership abilities. He underwent a mental examination last Friday by a psychiatrist hired by his former girlfriend, Manuela Herzer, who has challenged Redstone’s mental competency in a lawsuit.
The results of the examination have not been made public.
After Herzer’s lawsuit, value investor Mario Gabelli, the second-largest voting shareholder in Viacom, called for the media company to disclose the state of Redstone’s mental competence.
CBS, which owns Showtime as well as the eponymous television channel, said Redstone would be replaced by Leslie Moonves, its president and chief executive since 2006.
Shari Redstone, 60, had said that both companies needed an “independent voice" as chair who was not involved in her family’s personal matters. She supported Moonves as CBS chief.
Dauman serves as a Redstone trustee in the event of his death as well as the founder’s health care proxy.
Redstone controls about 80% of the voting shares in Viacom and CBS Corp through a holding company.
In January, Viacom said it cut the compensation of its top two executives, executive chairman Redstone and CEO Dauman, as the company faced business pressures and a sharp drop in its share price.
Viacom shares rose in early Nasdaq trading, but gave up gains to trade around the unchanged mark. CBS Corp. shares rose 1.1%.
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