Paramount has unveiled terms for Bob Bakish’s exit package after the chief executive resigned from his position earlier this week.
According to an SEC filing on Friday, Bakish will remain with the company as a senior advisor through Oct. 31 to assist with the transition. The end of his employment will be considered a “termination without cause.”
During the transition period, he will receive a monthly base salary of $258,333.33. He will also remain eligible to receive a pro-rated bonus for 2024 that will be calculated based on his service until his separation date and will continue to vest in all outstanding equity awards in accordance with their terms.
“During the Transition Period, the Parties acknowledge and agree that Executive’s level of services with the Company shall in no event decrease below 20% of the average level of services provided by Executive during the immediately preceding 36-month period,” the filing states.
Bakish will also remain entitled to enhanced separation benefits under the company’s Executive Change in Control Severance Protection Plan in the event that a change in control occurs within six months following his separate date provided that he agrees that his severance multiple will be 2.5 times and his benefit continuation period will be 30 months thereunder.
Per Paramount’s latest proxy statement, Bakish will receive an estimated severance package of $48.5 million under a non-qualifying change in control termination, which includes $6.2 million in continuation of salary and other cash compensation, $24.8 million in annual bonus continuation, $83,913 in continuion of medical, dental and life insurance, $25,000 in outplacement assistance and $17.38 million in total acceleration/continuity of equity awards.
In the event of a qualifying change of control termination, that package would be $64.03 million, per the proxy filing, including $9.3 million in continuation of salary and other cash compensation, $37.2 million in annual bonus continuation, $127,670 in continuation of medical, dental and life insurance, $25,000 in outplacement assistance and $17.38 million in total acceleration/continuity of equity awards.
Additionally he will be reimbursed up to $100,000 in documented attorneys’ fees incurred in connection with his departure from the company and the negotiation of the agreement within 20 days after Paramount’s receipt of written documentation of such fees and in all events on or prior to April 30, 2025.
Following Bakish’s resignation, Paramount established an Office of the CEO, which is in the process of putting together a long-term strategic plan for the company.