Dooley will serve as interim president and CEO of the company until September 30, the end of Viacom’s fiscal year, at which point the board of directors and Dooley will make a decision regarding succession plans.
Dauman, meanwhile, will remain as Viacom’s non-executive chairman of the board until September 13. Sumner Redstone will remain as chairman emeritus and his daughter, Shari Redstone, will remain non-executive vice chair.
With the announcement, a chapter of uncertainty for Viacom – parent company to such television networks as MTV, Spike, VH1, CMT, Logo and Nickelodeon as well as film companies including Paramount Pictures – may come to a close. Dauman, who had worked with the senior Redstone for more than three decades, was removed from the Sumner M. Redstone National Amusements Inc. Trust in May along with George Abrams, which set in motion a lawsuit from the two execs to counter the move.
Prior to that, Dauman had proposed a sale of Viacom’s stake in Paramount Pictures, which is said to have been a major factor in creating the rift. Under the terms of the agreement, Dauman will still have the opportunity to present a proposal concerning unloading the 49% stake to the expanded, 15-director board.
“I care deeply for Viacom, which has been an important part of my life since I joined Sumner in the acquisition of the company 30 years ago,” said Dauman in a statement. “I believe this agreement will give the company and its employees the best opportunity to continue a smooth evolution into the future. I will do my utmost to ensure an effective board and management transition in my remaining time as non-executive chairman.”
“By strengthening Viacom’s governance and leadership, these changes will enable the company to embark swiftly on a strategy that strengthens its position as an industry leader,” said Shari Redstone, president of National Amusements Inc, parent company to Viacom and CBS Corporation.