Ianniello was president and chief operating officer under former CEO Les Moonves, and he sided with Moonves in trying to block the merger, arguing it would be bad for CBS. Redstone owned a controlling stake in both companies through National Amusements Inc., and was seeking to combine them to achieve greater scale.
Vice Chancellor Joseph Slights of the Delaware Chancery Court allowed the case to proceed on Wednesday, rejecting motions from Ianniello andIn the 159-page ruling, Slights noted that Redstone had been critical of Ianniello’s compensation package — which included a $60 million severance provision — when Ianniello was trying to block the merger. But once he switched sides, the judge wrote, Redstone endorsed his pay package and supported giving him tens of millions more.
Ianniello has disputed this, noting that as a CBS shareholder his incentives were aligned with those of the plaintiffs. But in a footnote, the judge said he was unpersuaded.