Paramount has revealed the terms of Bob Bakish’s departure after he resigned as CEO earlier this week.
According to an SEC filing on Friday, Bakish will stay with the company until Oct. 31 as a senior advisor to help with the transition. His employment ending will be seen as a “termination without cause.”
During the transition, he will get a monthly base salary of $258,333.33, along with a pro-rated bonus for 2024 and continued vesting in outstanding equity awards.
The filing states that his level of service during the transition period will not be less than 20% of the level in the preceding 36 months.
Bakish will also be eligible for better separation benefits if there is a change in control within six months after he leaves, under certain conditions.
Per Paramount’s most recent proxy statement, Bakish could get a severance package of $48.5 million for a non-qualifying change in control termination, and $64.03 million for a qualifying change.
He will also be reimbursed up to $100,000 in documented attorneys’ fees related to his departure and agreement negotiation within 20 days after Paramount gets written proof of the fees, no later than April 30, 2025.
After Bakish resigned, Paramount formed an Office of the CEO to work on a long-term plan for the company.
The Office of the CEO includes George Cheeks, Chris McCarthy, and Brian Robbins. McCarthy is the “interim principal executive officer” according to the filing.
“It’s a really hard, difficult time,” Cheeks said during a news briefing with CBS Entertainment president Amy Reisenbach this week. “You read articles every day. But I think what’s positive about this team is that we all joined together and said, ‘We can only control what we can control.’ What we can control is helping to create great shows, successful shows and being number one. I’m amazed by this team every single day, especially now when you have to deal with all that noise out there — by the way, not just with this company, but in the larger industry. It’s just incredible to me how well we’ve all aligned and come together and focused on what we do every day.”
Bakish’s departure terms come as the Paramount board’s independent special committee has informed Skydance Media that it will let the exclusivity window on merger talks expire ahead of a Friday evening deadline.
In addition to Skydance, Sony Pictures Entertainment and Apollo Global Management have submitted a non-binding, joint $26 billion all-cash offer for Paramount. That deal would see Sony take a majority stake and operational control, while Apollo would take a minority stake. However, such a deal would likely face scrutiny from regulators due to limitations surrounding foreign ownership.
Any deal must be approved by the committee. Last month, four members of the board — including three who were on the committee — said they would not seek reelection at Paramount’s June 4 annual meeting.
An individual familiar with Redstone’s thinking told TheWrap that she is open to finding a deal in the best interests of Paramount shareholders and supports the committee reviewing the Sony-Apollo bid.
Paramount shares, which closed at $12.88 per share on Friday, are up more than 2% in after-hours trading. The company has $14.6 billion in long-term debt and reported a market capitalization of $9.05 billion as of Friday’s close.
Bakish stepped down as CEO earlier this week but will remain as a senior advisor through Oct. 31
