CBS Investors Can Press Forward With Waste Claims Over Redstone’s Pay
- Shareholders question compensation in wake of health issues
- Billionaire Redstone is CBS’s controlling shareholder
Sumner Redstone
Photographer: Robyn Beck/AFP via Getty Images
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CBS Corp. directors must face investors’ claims they improperly granted network owner Sumner Redstone millions in compensation after he became incapacitated in 2014.
Shareholders can press forward with claims Redstone was unjustly enriched through compensation the board gave him after his health issues made it difficult to function and that pay was a waste of corporate assets, Delaware Chancery Court Judge Andre Bouchard concluded Thursday. Bouchard also dismissed investors’ challenges to some of Redstone’s compensation that reduces the amount at issue in the case to about $4 million from $13.5 million.