The ailing 93-year old media mogul Sumner M. Redstone will step down from the board of Viacom in February, the company announced Friday, after a yearlong debate over his mental competence.
Even so, Mr. Redstone will continue to control his $ 40 billion media empire through his National Amusements holding company, where he remains chief executive. And there are no changes to his position on the board of CBS, where he is chairman emeritus.
Mr. Redstone controls about 80 percent of the voting shares in Viacom and CBS through National Amusements, the private theater chain company started by his father. In the last several months, his daughter, Shari E. Redstone, has taken a leading role in steering the company.
On Friday, Viacom disclosed in a regulatory filing that Mr. Redstone would cede his voting position on the board of Viacom, yet continue to participate in meetings in a nonvoting role.
Questions about Mr. Redstone's mental capacity and related corporate governance issues burst into public view last year, when a former girlfriend filed a salacious lawsuit that revealed embarrassing details about his feeble condition and sexual desires. Amid the drama, Mr. Redstone ceded his role as chairman at Viacom and CBS in February of this year but remained on the boards of both companies as chairman emeritus.
Then in May, Philippe P. Dauman, his longtime confidant and the chief executive of Viacom at the time, filed a lawsuit claiming that Mr. Redstone lacked the ability to make decisions about his businesses and was being manipulated by his daughter. Mr. Redstone, who has suffered a series of small strokes, has a severe speech impediment. He cannot read, write or do simple arithmetic, according to assertions in various court filings. In videotaped testimony taken May 5, Mr. Redstone relied on an interpreter to answer basic questions.
During all this, Viacom has struggled mightily across its television and film businesses. The company's share price has plummeted about 50 percent in the last two years. In the fiscal year ended Sept. 30, Viacom's revenue tumbled 6 percent and its profit plunged 25 percent.
The company on Friday also disclosed the pay package for Robert M. Bakish, the longtime Viacom executive who was named chief executive this week. Mr. Bakish's total pay could reach about $ 12 million a year, with his annual salary adding up to $ 5.25 million a year for his roles as president and chief executive, as well as chief executive of Viacom's global entertainment group. He is entitled to other bonuses and compensation.
That paycheck is considerably less than the remuneration for Mr. Dauman, who was removed as Viacom chief executive this year. In 2016, Mr. Dauman's total pay was $ 93 million, including salary, stock and option awards and other compensation. The previous year, Mr. Dauman's total pay was $ 54 million.
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