Moonves leaves CBS over misconduct claims
US TELEVISION giant CBS announced Sunday the immediate departure of powerful CEO Leslie Moonves, one of the biggest scalps in the #MeToo era, following a slew of escalating sexual misconduct allegations.
Moonves, who transformed the corporation into the most watched television network in the country, was one of the most respected executives in Hollywood until he was first publicly accused.
Two articles published by The New Yorker – on July 27 and on the day that his departure was announced – detailed allegations against the 68-year-old television titan from 12 different women.
CBS subsequently declared that he would depart as chairman, president and CEO “effective immediately,” and that he and the network would donate $20 million to supporting the #MeToo movement and equality for women in the workplace.
“The donation, which will be made immediately, has been deducted from any severance benefits that may be due Moonves,” CBS said.
The disgraced CEO will not receive any compensation, pending the results of an investigation into the allegations against him being conducted by two blue-chip law firms, the corporation announced.
“Any payments to be made in the future will depend upon the results of the independent investigation and subsequent board evaluation,” CBS announced in a statement.
Moonves’s departure had been widely expected, with US media reporting that the terms of his exit had been under negotiation for weeks, and a deal had been anticipated before markets open Monday.
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At least one report had suggested that he could get a golden handshake of $100 million in stock.
One of his accusers, Jessica Pallingston, told the Pulitzer-winning journalist Ronan Farrow, who broke the allegations against Moonves in The New Yorker, that such a payoff would be “completely disgusting.”
CBS announced that chief operating officer Joseph Ianniello will be president and acting CEO, overseeing all operations of the company, while the board searches for a permanent successor.
Along with Moonves’s departure, CBS said it had agreet to settle a lawsuit with National Amusements pending in Delaware that would appoint six new inde- pendent directors to the board.
The deal upheld the control of the Redstone family, whose members control an 80 per cent voting stake in CBS, who agreed to drop – for at least two years – a proposed merger with the Viacom group.
In July, Farrow’s first bombshell report detailed sexual harassment allegations from six women and complaints from dozens of others about a culture within the company tolerating sexual misconduct.
While CBS appointed a team of lawyers to investigate, there was outrage from some advocates that Moonves was kept on the job.