Viacom (VIAB) Stock Down, CEO Dauman, COO Dooley Reserve Right to Resign
NEW YORK (TheStreet) -- Shares of Viacom (VIAB) - Get Report are sliding 0.6% to $44.43 this morning after CEO Philippe Dauman and COO Thomas Dooley sent notes reserving their legal right to resign "with good reason," Reuters reports.
The move will protect potential severance pay for the two executives if a judge approves a recent attempt last month by Sumner Redstone, chairman of the board at National Amusements (NA), to remove Dauman and four other directors from National Amusements-owned Viacom's board.
Dauman and Dooley are legally entitled to their severance pays - at $90 million and $30 million, respectively - if they resign with good reason, but not if they are forcibly removed.
Both executives' employment agreements state that they can resign if changes are made to Viacom's board, so long as they file letters within 30 days of the event.
Redstone and National Amusements have yet to explain the motive behind the removals.
Viacom is a New York-based entertainment company.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and notable return on equity. However, TheStreet Ratings finds weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: VIAB
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.