Viacom investors pay CEO’s bills

NEW YORK: Viacom Inc disclosed on Friday it would foot the bill for embattled Chief Executive Officer Philippe Dauman's legal fight against controlling shareholder Sumner Redstone, even as Wall Street cheers the executive's potential departure.

The disconnect demonstrates the complicated corporate governance challenge Viacom's board is facing in the battle for control of Redstone's $40 billion media empire, which includes CBS Corp and Viacom, investors and corporate governance experts said.

"I don't think it's appropriate to use shareholder money for the suit," said Ben Strubel, a principal with Lancaster, Pennsylvania-based wealth manager Strubel Investment Management, which owns non-voting shares of Viacom.

"I don't think it's appropriate to use shareholder money toward his compensation given the company's performance."