NEW YORK President and CEO Leslie Moonves is staying with CBS Corp. at least through Sept. 30, 2011 under a new employment agreement signed Tuesday that extends his contract and more closely ties his compensation to the company's stock performance.
Under the terms of the agreement, Moonves' salary is $3.5 million per year, versus $5.9 million in the previous contract, which included $2.9 million in deferred compensation.
Moonves will also be eligible for an annual performance-based bonus and will receive equity-based compensation that ties his payout to the performance of the company's stock.
Included in the agreement is a onetime option to purchase 5 million shares of CBS Class B common stock, which will be granted later this week.
CBS also said it has provided incentives for Moonves to continue his relationship with the company upon the end of the employment term.
"I look forward to working with Les for many years to come," said CBS executive chairman Sumner Redstone. "What he has accomplished since we unleashed the new CBS has exceeded all my expectations. There is no better CEO in America, and I have no doubt that his success will only continue as he leads CBS into the next decade."
Moonves said: "I love this great company and the talented people with whom I am privileged to work. I am very excited about our future together and confident in our continued success."