NOW THAT’S A BONUS

Viacom’s two top executives—Chairman Sumner Redstone and President Mel Karmazin—both earned nearly $34 million last year, including a $16.5 million bonus for each, according to the company's proxy statement filed Monday with the Securities and Exchange Commission.

In addition to the bonuses, Redstone and Karmazin received $3.6 million in salary, up from $3.3 million in 2001. Redstone and Karmazin, who under contract make identical amounts, were given $12 million each as bonuses in 2001. Wow.

The pay hike for Redstone and Karmazin rewards both for making Viacom the top performer among big media companies last year, the proxy statement said.

Last year, Viacom's stock dropped 7% but revenue for the year was up 6% to $24.6 billion.

Viacom revamped its board as part of an effort to make it more independent. In so doing, CBS CEO Leslie Moonves and Redstone's son, Brent, gave up their seats on the board. Additionally, investment advisor Ken Miller and technology executive George H. Conrades also vacated their seats.

Replacing them will be former Health, Education and Welfare Secretary Joseph A. Califano Jr., former Defense Secretary William S. Cohen and Wall Street's Alan C. Greenberg. The moves cut Viacom's board size to 17 directors, 11 of them independent.