CBS CEO Moonves resigns amid new
allegations of sexual misconduct
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[September 10, 2018]
By Kenneth Li
(Reuters) - Leslie Moonves, the top
executive at CBS Corp CBS.N since 2006 and a major figure at the
broadcast network and media company for more than two decades, resigned
on Sunday amid a new wave of allegations against him of sexual assault
and harassment.
His departure as chairman, CEO and president was confirmed by the
company in a statement coinciding with its announcement of a deal to end
litigation against majority CBS shareholder Shari Redstone and National
Amusements Inc for control of CBS.
Chief Operating Officer Joe Ianniello will take over as interim CEO as
the board searches for a replacement, according to the announcement. The
settlements end years of uncertainty over the future of CBS and could
potentially open the door to future deals.
The announcement came after six more women accused Moonves of sexual
assault and harassment in a report published on Sunday in the New Yorker
magazine. The newly disclosed incidents, which the women said occurred
between the 1980s and early 2000s, included claims of forced sex,
Moonves exposing himself and his alleged use of physical violence and
intimidation.
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"Untrue allegations from decades ago are now being made against me that
are not consistent with who I am. Effective immediately I will no longer
be Chairman and Chief Executive Officer of CBS," Moonves said in a
statement on Sunday.
Moonves, who turned CBS from an aging radio and TV broadcaster into a
successful provider of shows to digital platforms, was expected to reap
an estimated $100 million in severance. But Moonves, 68, could end up
with nothing pending an investigation into the allegations of violence
against women conducted by law firms hired by an independent committee
of the CBS board of directors.
CBS said it and Moonves will donate $20 million of Moonves' severance to
organizations supporting the #MeToo movement.
"Today's resolution will benefit all shareholders, allowing us to focus
on the business of running CBS - and transforming it for the future,"
Redstone said in a statement. "We are confident in Joe's ability to
serve as acting CEO and delighted to welcome our new directors, who
bring valuable and diverse expertise and a strong commitment to
corporate governance."
National Amusements agreed to avoid pressing for a merger of CBS and
Viacom, which is also controlled by National Amusements, for at least
two years.
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In earlier court filings, NAI had dropped support for a deal before it
was sued in May by CBS for control of the company. The settlement does
not preclude other parties from suggesting a merger or bringing other
potential transactions to the board, one source said.
Five current independent directors and one National
Amusements-affiliated director have stepped down from the board of
directors and six new directors have been elected, the company said.
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![](../images/091018pics/news_m23.jpg)
Leslie Moonves, Chairman and CEO, CBS Corporation, speaks during
the Milken Institute Global Conference in Beverly Hills, California,
U.S., May 3, 2017. REUTERS/Lucy Nicholson/File Photo
![](../images/ads/current/fitzpatrick_lda_SPONSOR_2017.png)
Three of the new board members are women, each considered a
trailblazer in their respective fields, bringing the total to six on
the 13-member board. They are: Candace Beinecke, a senior partner at
international law firm Hughes Hubbard & Reed; Barbara Byrne, a
retired vice chairman of investment banking at Barclays, and Susan
Schuman, CEO of SYPartners, a business consultancy.
Also new to the board are: Richard Parsons, former chairman of
Citigroup and Time Warner; Brian Goldner, CEO of Hasbro; and Strauss
Zelnick, CEO of Take-Two Interactive TTWO.O.
CBS said the board will schedule its annual shareholders meeting no
later than Nov. 30.
'DAMAGE DONE'
Reports of a potential big payout to Moonves drew fire from advocacy
groups.
"CBS, as you sit in a room debating next steps to rectify the damage
done, remember that the world is watching. We will accept nothing
less than full transparency of the investigation's findings, a
commitment to real change across all levels of CBS management and no
reward for Les Moonves," Time's Up, a campaign against workplace
sexual misconduct, said in a statement.
CBS said details of the litigation settlement and the Moonves
agreement will be disclosed in an upcoming regulatory filing.
In a statement to the New Yorker, Moonves acknowledged three of the
newly described encounters, but said they were consensual. (Full
Story)
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"The appalling accusations in this article are untrue," Moonves told
the New Yorker. "What is true is that I had consensual relations
with three of the women some 25 years ago before I came to CBS. And
I have never used my position to hinder the advancement or careers
of women."
CBS said on Sunday it takes such allegations very seriously.
"The CBS Board of Directors is committed to a thorough and
independent investigation of the allegations, and that investigation
is actively underway," the media company's board said in a
statement.
(This version of the story has been refiled to correct last name of
Chief Operating Officer to Ianniello from Ianiello in paragraph 3)
(Reporting by Kenneth Li in New York; Additional Reporting by Mekhla
Raina in Bengaluru; Editing by Will Dunham and Sam Holmes)
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