LOS ANGELES (AP) — Aging media mogul Sumner Redstone stepped down as executive chairman of Viacom on Thursday and was replaced by CEO Philippe Dauman, a move that immediately disappointed investors.
Investment adviser SpringOwl, which holds a stake of undisclosed size in Viacom, had also opposed Dauman's bid for the chairmanship, calling instead for an independent director.
Mario Gabelli, whose Gabelli Asset Management Inc. owns 10 percent of Viacom's voting shares, told CNBC on Thursday that Dauman has "bought himself six more months or nine more months to indicate how he plays his cards."
Lucian Bebchuk, a Harvard law professor and director of its program on corporate governance, said the board conflict highlights the problems of companies with two classes of stock — one set that holds voting power, and another that does not.
"The company's CEO is unaccountable to public investors and accountable only to a person whose health prevents him from actively monitoring the affairs of the company," Bebchuk said.
