Viacom raises dividend by 7 cents to 40 cents

(Reuters) - U.S. media company Viacom Inc raised its quarterly cash dividend by 7 cents to 40 cents per share amid investor criticism over high executive pay.

Viacom, which owns MTV, Comedy Central and Nickelodeon, has been struggling for the past few quarters because of declining ratings and changing TV viewing habits, including the dumping of pricey cable subscriptions.

Chief Executive Philippe Dauman's pay rose 19 percent to $44.3 million for the year ended Sept. 30, despite an 8 percent drop in Viacom's shares in the period.

Proxy adviser Institutional Shareholder Services had recommended investors to withhold support on compensation at the company's annual meeting in March.

Viacom said on Wednesday that the increased dividend will be payable on July 1.

The company raised its dividend by 3 cents in May 2014.

Viacom has also been facing questions about who would succeed the 91-year old Chairman, Sumner Redstone, who controls about 80 percent of the voting shares in the company.

Viacom's shares were up 1 percent at $66.26 on the Nasdaq in afternoon trading on Wednesday. Up to Tuesday's close, they had fallen nearly 13 percent this year.

(Reporting by Sai Sachin R in Bengaluru; Editing by Sayantani Ghosh and Don Sebastian)