Viacom Cuts Redstone’s Salary and Bonus

NEW YORK, September 25:
Viacom is reducing the cash salary and bonus of its executive chairman and
controlling shareholder, Sumner Redstone, linking most of his compensation to
the performance of the company’s stock.

Viacom’s president and
chief executive, Philippe P. Dauman, and Thomas E. Dooley, the senior executive
VP and chief administrative officer, recently entered similar agreements.

Beginning in 2007,
Redstone's salary will be reduced to $1 million per year from $1.75 million and
the deferred compensation of $1.3 million per year will be eliminated.
Redstone's target cash bonus under Viacom's short-term incentive plan will be
reduced to $3.5 million per year from $6.1 million.