CBS Establishes Succession Plan, CEO Les Moonves To Become Chairman

CBS Corporation (NYSE: CBS) CEO Leslie Moonves will take over as Chairman of the Board following the death of 92-year-old Sumner Redstone, according to a Bloomberg report.

Redstone currently serves as Chairman on both CBS's and Viacom, Inc. (NASDAQ: VIAB)'s Boards and controls the majority of voting shares of both companies.

Bloomberg noted that the new arrangement "lessens the potential for discord" over succession at CBS. The publication added that both Moonves and Viacom CEO Philippe Dauman have employment contracts that allow both of them to step down from the company with millions of dollars in severance if they are not appointed to Chairman upon the death or departure of Redstone.

Shares of CBS closed Monday at $45.79, up 0.28 percent on the day and were little changed in Tuesday's pre-market trading session.