MOONVES'FIRING CAPS WAVE OF SHAMED CEOs

CBS Corp.’s decision to fire Chief Executive Officer Les Moonves and strip him of a $120 million payout caps an unprecedented year for naming-and-shaming in the corner office.

Corporate boards dispensed with genteel euphemisms, such as “pursuing other interests” or “spending time with their families,” to call out CEO misbehavior at companies that included Intel, Wynn Resorts and Lulu- lemon Athletica.

In at least a dozen U.S. departures this year, companies directly accused the CEO of misconduct unrelated to financial performance, sometimes going so far as to describe harassment or other sexual misdeeds. Nor was the phenomenon con- fined to America.

The firestorm of accusa- tions against Hollywood producer Harvey Weinstein in late 2017 spread from enter- tainment and media across other areas of business and government in the U.S. and abroad.

With the backing of social media, women came forward with both new and old alle- gations that boiled over in Europe and India, as well. Corporate boards, sports teams, nonprofits and other organizations have become increasingly willing to call out misdeeds and part ways with offenders.

Weinstein has denied any wrongdoing.

“Definitely, transparency has increased, especially regarding CEO cases,” said Daniel Schauber, whose Exechange.comcounted the 12 instances where boards specified misconduct among more than 200 CEOs who left their jobs at Russell 3000 companies this year. “This simply did not exist in 2017.”

Moonves stepped down in September in the wake of a dozen complaints of sexual harassment. CBS commissioned two law firms to deter- mine if he should receive $120 million in severance. The board announced Monday that he violated com- pany policy and didn’t com- ply with an internal probe. Moonves has denied wrong- doing and complained through his lawyer about the public nature of the probe and accusations.

Corporate boards have been quicker to take action in 2018, now often announc- ing a CEO’s departure at the same time the misconduct was disclosed, said Davia Temin, founder of crisis consultancy Temin & Co. in New York.

In October and November of last year, there were an average of 40 days between the first accusations and a firing.

That has shrunk to almost zero now, she said, citing her database.

“As corporate boards have seen that the MeToo movement isn’t going to go away, they are beginning to realize through public pressure that misbehavior is not going to be allowed,” she said.

Temin’s company keeps a running tally of reports of noteworthy people accused of misconduct related to harassment and other associated misbehavior. That list now totals more than 1,000 men, including 67 CEOs, who have been accused over the last three years.

Of those, only 12 have kept their jobs, Temin found.

Most of the allegations have come since the Weinstein affair.

JORDAN STRAUSS / INVISION / AP The CBS board said that Les Moonves violated company policy and didn’t comply with an internal probe and denied him $120 million in severance.