CBS CEO Les Moonves Resigns Amid More Sexual Abuse Allegations

Les Moonves

Following allegations of sexual abuse by at least six more women in an article by THE NEW YORKER's RONAN FARROW, CBS Chairman and CEO LES MOONVES has resigned.

MOONVES' departure is part of a larger agreement to settle ongoing litigation between CBS' controlling shareholder SHARI REDSTONE and NATIONAL AMUSEMENTS INC, which was headed to court on OCTOBER 3rd.  CBS COO JOE IANNIELLO has been named as interim CEO, while a search is launched for MOONVES' successor.

The Details

Under the settlement reached between CBS and MOONVES, the parties will donate $20 million to organizations involved in the #MeToo movement, deducted from MOONVES' severance benefits following an independent investigation by COVINGTON &  BURLING and DEBEVOISE & PLIMPTON; a release said that MOONVES "will not receive any severance benefits at this time (other than certain fully accrued and vested compensation and benefits)" and future payments depend on the results of the investigation and Board evaluation.

At the same time, five current independent directors and one NATIONAL AMUSEMENTS-affiliated director have stepped down from the Board, and six new independent directors have been elected.   CANDACE BEINECKE, BARBARA BYRNE, BRIAN GOLDNER, RICHARD D. PARSONS, SUSAN SCHUMAN, and STRAUSS ZELNICK have been elected to the board, with WILLIAM COHEN, GARY COUNTRYMAN, LINDA GRIEGO, and MARTHA MINOW staying on and Vice Chair SHARI REDSTONE and ROBERT KLIEGER remaining on the board representing NATIONAL AMUSEMENTS.

Finally, REDSTONE's NATIONAL AMUSEMENTS confirmed it will hold off on proposing a merger between CBS and VIACOM for at least two years after the date of the settlement.

REDSTONE said, "CBS is an organization of talented and dedicated people who have created one of the most successful media companies in the world. Today's resolution will benefit all shareholders, allowing us to focus on the business of running CBS -- and transforming it for the future. 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."

Lead Independent Director BRUCE GORDON said, "We thank LES for his 24 years of service. Among his achievements, he established a strong management team, giving us great confidence as we accelerate our succession plans and provide continuity of leadership. This agreement maintains an independent Board that is charged with determining the best course for the future of CBS on behalf of all shareholders."

GORDON, speaking about the departing board members, said, "They have devoted many valuable hours looking out for the best interests of this company, which has achieved industry-leading performance during their tenure. I welcome the new directors, who bring superb expertise, competence and diversity of perspective."

According a CBS CORP. proxy filing, MOONVES earned $69.3 million in 2017, a slight decline from his 2016 compensation of $69.6 million.  His compensation package is estimated at $100 million, with CBS donating a portion to an unnamed charity and having the right to "claw back" the remainder of that money pending investigations into these allegations.

That same proxy filing also disclosed the 2017 salary for IANNIELLO, who took in $22.1 million in 2017 compared to $29 million in 2016.

Moonves' Statement Blames 'Untrue Allegations'

MOONVES issued a statement late SUNDAY saying, "For the past 24 years it has been an incredible privilege to lead CBS's renaissance and transformation into a leading global media company. The best part of this journey has been working alongside the dedicated and talented people in this company. Together, we built CBS into a destination where the best in the business come to work and succeed.

"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.

"I am deeply saddened to be leaving the company. I wish nothing but the best for the organization, the newly comprised board of directors and all of its employees."

More Allegations Surface

The new allegations reported by FARROW include a former co-worker during MOONVES' tenure at LORIMAR-TELEPICTURES, PHYLLIS GOLDEN-GOTTLIEB, who filed a criminal complaint last year alleging that MOONVES physically restrained her and forced her to perform oral sex on him as well as exposing himself to her and throwing her against the wall in other incidents; FARROW reports that law enforcement sources found the allegations "credible and consistent" but the statute of limitations had expired. Also alleging abusive behavior was JESSICA PALLINGSTON, an assistant assigned to MOONVES for several days in 1994 at WARNER BROS. TELEVISION, who recounted having to work with MOONVES in a hotel room, where MOONVES solicited a massage and then forcing her to give him oral sex, and later, after she refused to submit in a later encounter, became hostile towards her and led to career problems, and DEBORAH GREEN, a freelance makeup artist who says she forced a kiss on her and was subsequently no longer hired for CBS corporate print-and-publicity shoots.

Former LORIMAR junior executive DEBORAH MORRIS told FARROW that MOONVES tried to kiss her on two occasions, and after she bolted from both encounters, was frozen out of company meetings, ending her entertainment industry career. Writer LINDA SILVERTHORN said that she and MOONVES had consensual sex in his office but that years later, after she had entered a long-term committed relationship with another man, MOONVES, at a meeting, shut the door, kissed her, and "pulled his penis out," moving it towards her hand for manual stimulation, which she said she "just got it over with"; subsequently, he told her there were no opportunities for her at the studio. And massage therapists at the FOUR SEASONS HOTEL in WASHINGTON, staff members told FARROW, complained of sexual misconduct by MOONVES, as did a LOS ANGELES massage therapist, DEBORAH KITAY.

CBS' response to sexual harassment and assault allegations against MOONVES and "60 MINUTES" Executive Producer JEFF FAGER has been criticized as inadequate and resulting in a frat house or "MAD MEN" atmosphere. The network moved quickly to fire CHARLIE ROSE after allegations of inappropriate behavior were reported by the WASHINGTON POST, but MOONVES, who has been credited with CBS CORPORATION's strong performance and has been embroiled in a battle with SHARI REDSTONE over a potential re-merging of CBS with VIACOM, had survived allegations thus far

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