Paramount Global, the parent company of CBS and Nickelodeon, has implemented a new severance plan designed for its key executives in the event of a change in control within two years of an acquisition.

This plan, sanctioned by the company’s compensation committee and disclosed in a recent filing, extends to top officials including CEO Robert Bakish and CFO Naveen Chopra, a Bloomberg report said.

Amid the industry-wide shift from traditional TV to online entertainment, Paramount has confronted financial challenges. In the last quarter, the company witnessed a 7.7 percent decrease in revenue from traditional TV networks, accompanied by a 14 percent dip in advertising.

However, Paramount+ streaming service and filmed entertainment managed to offset these declines, showcasing gains.

Despite this strategic shift, Paramount’s stock performance has faltered, facing a 22 percent decline over this year. This comes as the media giant navigates a landscape where streaming services are increasingly dominant and cable subscriptions dwindle.

The majority control of Paramount lies in the hands of Shari Redstone, the chairperson, whose family’s company, National Amusements, holds a significant portion of the voting shares.

The newly introduced severance plan, effective November 16, outlines compensation structures for top officers if they face termination without cause or resign for valid reasons following a change in control.

The plan entails payment of a pro-rata segment of their annual target bonus, coupled with a multiple of their base pay and bonus.

Additionally, it includes extended health benefits and the acceleration of stock award vesting, underlining Paramount’s commitment to ensuring executive stability during transitional periods.