Viacom Investor Loses Appeal Over Redstone, Executives’ Pay
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A Viacom Inc. investor lost a bid to revive a lawsuit claiming Chairman Sumner Redstone and two top executives were overpaid, when a U.S. appeals court refused to “second guess” the judgment of the company’s board.
The shareholder, Robert Freedman, claimed the company improperly used subjective criteria in setting compensation, which led to overpaying the executives by more than $36.6 million from 2008 to 2011 and a loss of tax deductibility on the alleged excess.