CBS Corp. has signed a new employment agreement with Les Moonves that keeps him as president and CEO through Feb. 22, 2015, and would also enable him to continue to create shows for the network after he steps down from that post.
The programmer said that the new agreement "provided Mr. Moonves incentives to continue to provide certain services to the company following the expiration of his employment agreement including an inducement to enter into a production agreement."
Moonves has not yet agreed to enter the production deal, the company said.
That production agreement calls for a four-year term, during which CBS will invest up to $3 million per year for staffing, infrastructure and to secure rights to projects he wants to develop. Moonves will also receive a fixed fee of $1.5 million per year for his exclusive services.
Moonves, who led the development of hits including E.R. and Friends when he ran Warner Brothers Televisoin before joining CBS, will also receive fees for producing projects accepted by CBS and compensation based on how much money those project generate.
Moonves will be required to submit a minimum number of projects per season and CBS will be required to order three series over the four-year term of the agreement, the company said. Each series ordered will be subject to then current CBS license fees and will be on the most favorable terms of any other deals between the Company's CBS Studios unit and its profit participants during the term.
If CBS does not order the minimum series commitment, Moonves will be entitled to receive penalty payments at the conclusion of the term, the company said.
CBS also would get a first look at any movie project Moonves develops under the agreement.
