SMART HUMAN TRICK

Letterman to Wisecrack until 2012

Show takes a pay cut, but will the jokes survive?

This probably makes Jay Leno antsy: David Letterman seems pretty comfortable in his time slot and will continue to be a late-night staple on CBS through August 2012 after finalizing his new contract. CBS will pay less for the show over the next two years, leaving Letterman’s company, Worldwide Pants, which co-owns the show, to pick up the slack. His previous contracts were for three years, but this one only guarantees two. It’s unclear if this will be the 62-year-old host’s final run. His show has suffered from declining ratings, but is still a big money-maker for CBS. Letterman won't necessarily reduce his $32 million a year salary even though CBS is forking over less money.