Paramount Global (NASDAQ:PARA), currently trading at $22.76 and showing signs of being undervalued according to InvestingPro Fair Value analysis, announced on Wednesday the extension and adjustment of the employment agreement for one of its key executives. Doretha F. Lea, the company's Executive Vice President of Global Public Policy and Government Relations, will continue her term through December 31, 2028.
The new agreement, effective December 5, maintains Ms. Lea's annual base salary at $1 million. Additionally, her target annual cash bonus under the company's Short-Term Incentive Plan has been increased to 110% of her base salary. This bonus is contingent upon meeting performance goals set by the Compensation Committee of Paramount's Board of Directors. Furthermore, the target value of her annual equity compensation grants under the Long-Term Incentive Plan has been raised to $1.25 million. The company maintains strong liquidity with a current ratio of 1.27, and InvestingPro data shows 11 analysts have recently revised their earnings expectations upward.
These changes reflect Paramount's commitment to retaining its senior leadership team and aligning executive compensation with the company's performance objectives. The announcement comes as Paramount, formerly known as ViacomCBS Inc (NASDAQ:PARAA)., continues to evolve its strategic direction in the competitive media landscape. The company has maintained dividend payments for 19 consecutive years, demonstrating long-term financial stability despite current market challenges.
The detailed terms of the agreement will be disclosed in the company's forthcoming Annual Report on Form 10-K for the fiscal year ending December 31, 2024. This report will provide investors and the public with a complete overview of the executive compensation package and other relevant details.
Paramount Global, headquartered at 1515 Broadway in New York, operates as a mass media conglomerate with interests primarily in cinema and cable television. It stands as a significant player in the television broadcasting industry, with a history of corporate name changes reflecting its evolving business strategy.
In other recent news, Paramount Global has been the center of several significant developments. The company has recently completed the sale of its 13.01% stake in Viacom 18 Media Private Limited to Reliance Industries (NS:RELI) Limited, a transaction that is expected to yield an estimated net proceeds of $456 million. On the executive front, Paramount Global has established a cash-based incentive program aimed at retaining key executives. Doretha F. Lea and Nancy Phillips, two Paramount Global executives, have been granted potential awards of $1,000,000 each, contingent upon the successful closure of certain transactions.
In the boardroom, Charles E. Phillips, Jr. has resigned from Paramount Global's Board of Directors, citing the expansion of his firm Recognize and the launch of a second fund. The company has yet to announce plans for filling the vacancy. Meanwhile, software billionaire Larry Ellison is set to gain control of Paramount Global following Skydance Media's acquisition of the Redstone family's stake in the company. Skydance Media, led by David Ellison, Larry Ellison's son, offered $4.5 billion in cash or stock to Paramount shareholders, enhancing Paramount's balance sheet with an additional $1.5 billion. These are recent developments in the company's operations and structure.
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