CBS Inks Post-CEO Production Agreement With Moonves
CBS Corp. and CEO Leslie Moonves have an arrangement that could provide him with at least $18 million for a production business after his contract expires. Under the arrangement, CBS would also have to order three series executive-produced by Moonves or pay him penalties.
Moonves’ current deal as CEO runs through February 2015, although it could be extended. Last week, he suggested that CBS would produce a record 2012.
The production deal would need to be formalized as Moonves departs. But in an SEC filing Friday, details of how it would be structured were released.
An agreement would be for four years and cover production of TV, film and digital content. CBS would invest up to $3 million a year for operations and to secure certain content rights.
Moonves would also receive a salary of $1.5 million a year, although he could end up receiving much more, based on the success of shows he executive-produces.
Moonves will be required to submit a minimum number of projects a year and CBS will have to order three series during the four-year term. If it orders fewer than three, it would have to pay Moonves a penalty.
CBS will license shows it orders from Moonves "on the most favorable terms of any other deals” CBS Studios reaches during the contract span, according to the SEC filing.
In film, CBS will have a first-look deal with Moonves. The same goes for digital projects.