Succession
Redstone's trusts make it clear that his daughter, Shari Redstone (Vice-Chairwoman of the Board of Viacom and CBS as well as President of National Amusements), is set to assume his role upon his death. However, a November 22, 2006, New York Times article indicated that Redstone was reconsidering his daughter's role. In 2007, they feuded publicly over issues of corporate governance and the future of the cinema chain.
Documents have recently been made public which verify that, as part of a settlement from Sumner's first divorce, all of Sumner's stock is in irrevocable trusts that will be left for his grandchildren. On March 1, 2010, Sumner publicly announced that all of his stock will be left for his grandchildren.
Redstone made arrangements to step down as CEO of Viacom in 2006. After Mel Karmazin resigned in 2004, two heirs apparent were named: Co-President and Co-COO Leslie Moonves (who was number 2 to Karmazin at CBS; he was the former head of Warner Bros. Television and before that, Lorimar Television) and Co-President and Co-COO Tom Freston (who had been President and CEO of MTV Networks since 1987 and had been with the company since the formation of MTV Networks' precursor company, Warner-AMEX Satellite Entertainment). Since the Viacom split, Moonves has headed CBS, and Freston had headed the new Viacom, Inc.
When Moonves was promoted to Co-President and Co-COO with Tom Freston, there was speculation that he was on the short list of executives to replace Michael Eisner at the Walt Disney Company whose contract expired in 2006. Redstone has confirmed publicly in Vanity Fair that he originally offered the position only to Freston who initially turned it down and later relented when Redstone made it clear he was going to ask Moonves next.
On September 5, 2006, Redstone removed Tom Freston as President and CEO of Viacom and replaced him with director and former Viacom counsel Philippe Dauman. He also brought back former CFO Tom Dooley. This was surprising to many, as Freston had been seen by many as Redstone's heir apparent and that Redstone touted that Freston would run the company after he retired. Redstone publicly stated that he let Freston go because of Viacom's lack of aggressiveness in the digital/online arena, lack of contact with investors, and a lackluster upfront (coupled with falling viewership) at MTV Networks.
The company split was approved by the Viacom board on June 14, 2005.
Read more about this topic: Sumner Redstone
Famous quotes containing the word succession:
“The historic ascent of humanity, taken as a whole, may be summarized as a succession of victories of consciousness over blind forces—in nature, in society, in man himself.”
—Leon Trotsky (1879–1940)
“the negro Babo took by succession each Spaniard forward, and asked him whose skeleton that was, and whether, from its whiteness, he should not think it a white’s.”
—Herman Melville (1819–1891)
“The usual derivation of the word Metaphysics is not to be sustained ... the science is supposed to take its name from its superiority to physics. The truth is, that Aristotle’s treatise on Morals is next in succession to his Book of Physics.”
—Edgar Allan Poe (1809–1849)