CBS boss faces abuse allegations
LOSANGELES: For the first time in 23 years, CBS may have to consider a future without Leslie Moonves.
Sexual misconduct allegations against CBS Corp’s chairman and chief executive officer complicate an already messy situation for the broadcaster: Its board will have to investigate Moonves at the same time it’s working with him in a court fight for control of the most-watched US TV network.
An article on Friday in the New Yorker by Ronan Farrow accuses Moonves, 68, of harassing six women, including forced touching and kissing during business meetings, in incidents that go back as far as 30 years. The women say they were physically intimidated and that their careers suffered when they refused his advances. The article goes on to describe a culture of harassment at CBS.
“If the claims turn out to have merit, then we would expect that Moonves would almost certainly be forced to step down from the CEO role and the board,’’ Doug Creutz, an analyst with Cowen & Co, wrote in a note. The long-serving CEO is locked in a battle with National Amusements Inc, led by Shari Redstone, over her desire to recombine the company with Viacom Inc, another family holding. Moonves rejected her wishes and his board tried to dilute National Amusements’ 80% voting stake in the company.
With Moonves out, a merger becomes more probable, with Viacom Chief Bob Bakish likely presiding over the combined company, Creutz said. Independent members of CBS’S board have pledged an investigation into the CEO’S behaviour. The company retained the law firm Proskauer Rose LLP to look into its news division following allegations against anchor Charlie Rose, but hasn’t said who will handle the new investigation.
CBS will report its financial results next week, and hold its annual shareholder meeting August 10. Moonves, in the article, acknowledged there were times decades ago when he may have made some women uncomfortable by making advances but said he never used his position to harm anyone’s career.