CBS' Moonves gets a 28% raise as ratings, ad sales drop

The company made the disclosure this afternoon in its proxy filing to the Securities and Exchange Commission. It came less than two weeks after CBS acknowledged that it was laying off more than 160 people at its local television stations, including highly-paid anchors and weather reporters. Also this week, CBS executives confirmed that Moonves had been involved in discussions about a possible exit strategy for anchor Katie Couric because her stint at the "CBS Evening News" had fallen short of expectations.

Moonves, 58, earned a base salary of $5.3 million for 2007 and was awarded a $18.5 million cash bonus. Moonves also received more than $13 million in stock and option awards, according to the proxy. Moonves struck a new long-term contract with the company in October. The new deal stretches through September 2011.

CBS, in a statement, said that future years' earnings might not be so high.

"The new deal lowered Mr. Moonves' cash salary and bonus target and shifted the vast majority of his pay into stock options that will have no value unless the stock price exceeds $28.70, and into stock awards which will not vest unless CBS meets objective financial criteria," the company said.

"A significant portion of his reported compensation in 2007 is related to stock that was given to him in past years and was required to be reported this year, as well as some overlapping reporting of stock-based compensation from his old deal and new deal," the company added. It noted that his bonus and salary payments were lower in 2007 than in 2006.