Ianniello’s CBS Contract Extension Suggests He's No Sure Lock For CEO Job

CBS increased Joe Ianniello's base salary to $3 million when it extended him as president-acting CEO for six months through Dec. 31, said an 8-K Friday evening at the SEC. Ianniello this year also will get a bonus "not less than" his newly raised $15 million "target," plus a $5 million "lump sum" cash payout for agreeing to the extension, it said. He got a $2.5 million salary and $12.5 million bonus in 2018 when he spent most of the year as chief operating officer, said an April 12 proxy for the CBS annual shareholders meeting May 29 in New York. He was elevated Sept. 9 to his current posts after Les Moonves resigned as chairman-president-CEO amid sexual misconduct allegations (see 1809100026). Moonves got a $3.5 million salary and $20 million bonus in 2017, his last full year as top CBS executive, said an April 2018 proxy. The company "has agreed to renegotiate" Ianniello’s contract “in good faith” if it decides to make him permanent CEO on or before Dec. 31, said the 8-K. Though CBS said last week its board suspended the CEO search "as a testament" to Ianniello's "accomplishments" during his seven months in his new role, the 8-K suggested he's no sure lock for the job. If the board picks “another individual” for CEO or Ianniello loses his current positions stemming from a “corporate event” as defined in his July 2017 COO contract, he would become a CBS “consultant” for 90 days, if the board so requests, at his regular salary and bonus, it said. CBS would try to recoup a portion of any lump-sum money from Ianniello if he quits before the 90-day consultancy is up to reflect his "cessation of employment prior to the end of the employment term," it said. CBS reports Q1 results Thursday.