Executives navigate restructuring and cost-cutting initiatives as merger negotiations continue
Paramount Global’s co-CEOs, George Cheeks, Chris McCarthy, and Brian Robbins, have secured enhanced compensation packages as they steer the company through a critical period marked by an ongoing merger process with Skydance Media. The merger, which was finalized in July but is expected to officially conclude in the first half of 2025, will create a media powerhouse valued at $28 billion, combining Skydance’s blockbuster productions like Top Gun: Maverick with Paramount’s vast portfolio, including CBS, Showtime, Nickelodeon, and Paramount+.
As Paramount navigates the complexities of the merger, the trio forming the “Office of the CEO” has been granted salary boosts equivalent to twice their annual pay, along with additional stock options and bonuses. These pay increases, according to a securities filing disclosed by Paramount, will remain in effect even if the executives are no longer part of the CEO group. Each co-CEO also received $3 million in Restricted Share Units (RSUs) as part of their revised compensation.
Moreover, the new deal includes protections for the executives, allowing them to retain their compensation packages even if they opt to leave the company due to a demotion or a significant reduction in responsibilities. If any of the co-CEOs choose to resign for “good reason,” such as changes to their duties, they will still receive their current pay structure, ensuring financial stability throughout the transition.
The co-CEOs assumed their roles after the departure of Paramount’s former chief, Bob Bakish, in April. Bakish, whose compensation in 2023 was valued at $31.3 million, had been pivotal in the company’s previous direction. Following his exit, the trio was tasked with leading the company through a turbulent period of restructuring while overseeing the merger’s details.
Once the Skydance merger is finalized, David Ellison, head of Skydance, will take over as CEO, while former NBCUniversal executive Jeff Shell will serve as president. In the meantime, the co-CEOs have been executing a $500 million cost-cutting plan aimed at streamlining operations and improving profitability. This plan has included the sale of non-core assets and a significant reduction of Paramount’s U.S.-based workforce, which is projected to shrink by 15% by the end of the year. As of September, the layoff process was reported to be nearly 90% complete.
In a bid to further reduce costs, Paramount is also shutting down its Paramount Television Studios, responsible for popular series like Reacher for Prime Video and Time Bandits for Apple TV. These productions will be transferred to CBS Studios, a sister label within the company’s portfolio.
As Paramount prepares for the final stages of the merger and continues to adjust its corporate structure, the co-CEOs remain focused on ensuring the company’s financial health and long-term growth in an increasingly competitive media landscape.
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