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Viacom Hands Freston $59 Million

And don't forget about his 401(k).
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Viacom

(VIA) - Get Viacom Inc. Class A Report

said Wednesday it paid former CEO Tom Freston $59 million to get lost.

The company said in a regulatory filing late Wednesday that it entered a separation agreement with Freston on Monday. The filing says the agreement confirms Freston left for "good reason" under his employment agreement of two years ago.

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Viacom will pay Freston his salary and other benefits accrued through the date of his termination of employment, including $7.4 million in deferred compensation and $5.7 million for his 401(k) plan.

In addition, Viacom will make termination payments of $58.9 million, consisting of his salary (at an annual rate of $3,013,200), deferred compensation (at an annual rate of $2,600,000 for 2006, increasing by $300,000 per year for subsequent years) and target bonus (equal for each year to two times the sum of Mr. Freston's salary and deferred compensation), in each case for the period from the Resignation Date through June 30, 2009.

Freston left Viacom last month after Chairman Sumner Redstone indicated his dissatisfaction with the stock's performance and the company's failure to take leadership of the digital media business.