Paramount Shares Key Points of Separation Agreement with Jeff Shell

Jeff Shell Exits Skydance Amid Allegations and Financial Settlement

April 8, 2023 — Jeff Shell, the former president of Skydance, officially departed from the company on April 8, as confirmed in a recent SEC filing. The financial terms of his exit outline a severance package amounting to approximately $5 million, which consists of his salary and target bonus.

According to the filing, Shell’s severance will be equivalent to his annual base salary of $3.5 million and a $1.5 million bonus, as stipulated in his employment agreement when Skydance merged with Paramount. Payments will be distributed in regular installments over a 12-month period starting from the date of separation, provided that no payments will commence before the effective date of the agreement.

Upon his appointment, Shell received a substantial one-time restricted stock grant valued at $75 million, which vests over five years. It remains unclear how much he will retain from this stock award.

In today’s communication, the company highlighted that the separation agreement includes provisions for the accelerated vesting of certain restricted stock units (RSUs), which were originally scheduled to vest within the 12 months following his separation. Par clarified that the Sign-on Award will also remain active and eligible for vesting on the effective date.

Further details about Shell’s exit and associated agreements may become available in Paramount’s upcoming annual proxy statement. Notably, the company will continue to cover his medical and dental benefits throughout the severance period.

Shell’s departure follows a lawsuit filed by professional gambler RJ Cipriani, who has accused the executive of leaking insider information. An external legal review concluded that the allegations did not constitute a violation of securities laws. Still, Paramount acknowledged Shell’s exit, indicating that he chose to step down to focus on this lawsuit. The company expressed gratitude for Shell’s contributions and his role as a valued advisor.

This marks the second significant job loss for Shell in nearly three years. In April 2020, he was ousted as CEO of NBCUniversal amid allegations of inappropriate conduct, resulting in a forfeiture of approximately $43 million in compensation.

After leaving NBCUniversal, Shell joined RedBird Capital, a key investor alongside the Ellison family in Skydance’s acquisition of Paramount, where he was positioned as the number two executive. His resignation arrives as Skydance moves closer to a merger with Warner Bros. Discovery.