Jeff Shell is set to receive at least $5 million in his severance package as he exits as president of Paramount Skydance.
According to a Thursday SEC filing, the executive’s contract stipulates that he will receive a cash payment equal to his $3.5 million base salary and a target bonus of $1.5 million, payable “in accordance with PSKY’s regular payroll practices for twelve (12) months following the date of separation.”
Shell is also eligible for accelerated vesting of a number of restricted stock units subject to the stock award granted to him on Aug. 7, 2025, which would have otherwise vested through the 12 month anniversary of the date of separation had his employment continued during that time. Under the terms of his pay package, Shell had a one-time restricted stock grant valued at $75 million each that was scheduled to vest over five years as part of the company’s long-term incentive program.
Additionally, he will be entitled to company-subsidized health and dental benefit coverage for up to 12 months following his departure from Paramount.
Shell’s payments are subject to his “continued compliance with the Separation Agreement (which includes a release of claims in favor of PSKY and its affiliates) and applicable restrictive covenants,” per the filing.
On Wednesday, Paramount said Shell “elected to transition from his positions” as president and a board member of Paramount Skydance to focus on a lawsuit filed against him by whistleblower and Las Vegas gambler R.J. Cipriani.
Cipriani has accused Shell of failing to pay him for crisis communications services he allegedly provided to the executive. He also claimed that Shell disclosed material, non-public information to him, including details about Paramount’s $7.7 billion UFC media rights deal and its plans to sweeten its bid for Warner Bros. Discovery. Shell subsequently countersued and accused Cipriani of defamation and extortion and Cipriani responded by widening the scope of his lawsuit to include Paramount, its board of directors and the Ellison family.
Paramount conducted an internal investigation into Cipriani’s claims against Shell and, after a thorough review with independent counsel, determined the executive did not commit a securities law violation.
“Mr. Shell promptly notified [Paramount Skydance] of these accusations and is taking forceful legal action. [Paramount Skydance] and its named Board members will respond in the proceedings to the frivolous and baseless claims against [Paramount Skydance] and its named Board members and stockholders,” the statement continues. “Consistent with Mr. Shell’s commitment to prioritizing [Paramount Skydance]’s success, he has elected to transition from his positions as President of [Paramount Skydance] and a member of [Paramount Skydance]’s Board of Directors to focus on this lawsuit. [Paramount Skydance] is grateful for Mr. Shell’s many contributions and to have relied on him as a valued advisor.”
Cipriani is seeking at least $150 million in damages, while Shell is seeking an unspecified amount of compensation for all damages and losses caused by Cipriani’s accusations, as well as an “injunction restraining Cipriani from further defaming Shell.” A spokesperson for Shell declined to comment.
Shell’s departure from Paramount Skydance marks his second exit from a media company in three years after he was ousted from NBCUniversal in 2023 over allegations of sexual harassment from former CNBC correspondent Hadley Gamble, with whom he admitted to having an “inappropriate relationship.”
He would ultimately land at Gerry Cardinale’s RedBird Capital Partners, which helped fund Skydance’s $8 billion acquisition of Paramount and is backing the $47 billion in equity financing for Warner Bros. alongside the Ellison family. He would officially join the Paramount Skydance leadership team after the announcement of the merger in July 2024.
It also comes as the Paramount-Warner Bros. merger is expected to close by the third quarter, subject to regulatory and shareholder approval. A shareholder vote is slated for April 23.
In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
