The amounts for Doretha Lea and Nancy Phillips will represent 100% of their base salaries as of Nov. 15
Two Paramount Global executives will be eligible to receive a massive $1 million payment when the company's pending $8 billion merger with Skydance Media closes in the first half of 2025.
The awards, which are being granted to global public policy and government relations executive vice president Doretha Lea and chief people officer Nancy Phillips, will represent 100% of their annual base salaries as of Nov. 15, subject to the terms and conditions described in their transaction award program agreement.
According to the agreement, Lea and Phillips must remain continuously employed and in good standing through the Skydance deal's closing. The payout will be made in a single lump sum on the closing date. If Lea and Phillips are terminated prior to the transaction's closing, they will still be entitled to the award if the termination is "without cause," if they resign for "good reason" or if employment cases due to permanent disability or death. If employment is terminated for prior to the deal's close for a non-qualifying reason, the award will be forfeited.
According to a 669 page SEC filing released earlier this month, Lea's golden parachute compensation includes $5.77 million in cash, equity and prerequisites/benefits and $4.16 million in salary, bonus and pro-rated bonus components and $1.5 million in performance and restricted stock units.
Meanwhile, Phillips' golden parachute compensation includes $6.89 million n cash, equity and prerequisites/benefits, $4.6 million in salary, bonus and pro-rated bonus components and $2.24 million in performance and restricted stock units.
Lea, who oversees the development and execution of the company's government relations strategy and public policy work domestically and internationally, assumed her role in December 2019.
Her responsibilities include advocating public policy positions for the company and the content distribution and film industries at the international, national, state, and local levels and driving support for television and film production tax credits. She also provides political, policy and regulatory advice to the Paramount senior management team.
Prior to her current role, she served as Viacom's global government affairs EVP since 2013, as well as government relations president in 2005 and various government relations roles since 1997. She briefly left the company from 2004 to 2005 to serve as government affairs vp of Belo Corp. Before Paramount, she was the National Association of Broadcasters' SVP of government relations.
Meanwhile, Phillips oversees Paramount Global's human resources division, including its strategy and global programs. She also leads the company's HR business partners, talent acquisition, organizational effectiveness, learning and development, total rewards, people analytics, and HR operations and oversees global security.
Prior to Paramount, Phillips served as Nielsen's executive vice president and chief human resources officer. Before that, she was Broadcom's chief human resources officer prior to its sale of Avago Technologies and led HR at Hewlett Packard's Imaging and Printing Group, as well as the company's Enterprise Services business group. Prior to HP, Phillips served as EVP and chief human resources officer for Fifth Third Bancorp and spent 11 years with the General Electric serving in a variety of HR leadership roles.
The latest payouts come after Paramount Global co-CEOs Brian Robbins, George Cheeks and Chris McCarthy were given sweetened severance protection benefits, $3 million stock awards, and an increase in their annual cash bonus targets under Paramount's short-term incentive plan. The trio was elevated following the resignation of former Paramount CEO Bob Bakish, who stepped down from his role in April.
It also coincides with the media giant's ongoing reductions of 15% of its U.S. based workforce, which is expected to be completed by the end of the year. The cuts, which have impacted areas include marketing and communications, finance, legal, technology and other support functions, are designed to generate $500 million in annual run rate cost savings.
Redstone, who serves as non-executive chair, and Charles Phillips Jr., who led the independent special committee that brokered the Skydance deal, are set to exit Paramount's board of directors. Other board members who have previously exited include three other special committee members -- Dawn Ostroff, Nicole Seligman and Frederick Terrell -- and Redstone's longtime attorney Rob Klieger.
Meanwhile, Paramount global head of inclusion Marva Smalls will step away from her current role at the end of this year to work with the Office of the CEO, the media giant's board and David Ellison's Skydance Media in preparation for the closing.