• The Hollywood Reporter, Wednesday, October 17, 2007 10:32 AM

CBS chief Les Moonves will be hanging around the company until at least Sept. 30, 2011, under a new deal that extends his contract while linking his compensation closer to the company's stock price. Moonves will get $3.5 million per year in salary -- down from $5.9 million in his previous contract, which also included $2.9 million in deferred compensation. But he will be up for an annual performance-based bonus and get equity-based compensation tied to how well -- or not -- the company's stock does.

Also included in the deal is an option to buy five million shares of CBS common stock, and the company has also provided incentives for Moonves to stay on even after his employment term expires. Says CBS' executive chairman Sumner Redstone: "What he has accomplished since we unleashed the new CBS Corporation has exceeded all my expectations. There is no better CEO in America, and I have no doubt that his success will only continue as he leads CBS into the next decade."

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