Report: CBS, Moonves In Departure Talks
CBS Corp. (NYSE: CBS) CEO Les Moonves is reportedly in negotiations to leave the media giant after accusations of sexual misconduct.
What Happened
The CBS board is involved in settlement talks that would likely remove Moonves from the company, accordind to CNBC. The talks have spanned months and are not yet finalized, the report said.
“While under his contract he is due as much as $180 million in severance and a production deal, sources say the board is offering a roughly $100 million exit package made up almost entirely of CBS stock and wants the right to claw back some of that compensation if at the conclusion of an ongoing investigation into charges of sexual harrassment, Moonves has been found to have committed other inappropriate acts,” said CNBC’s David Faber.
Why It’s Important
The negotiations come at a pivotal time, as CBS simulatenously struggles with Viacom, Inc. (NASDAQ: VIAB) over the terms of a merger. This week, CBS and Viacom parent National Amusements Inc. announced a proposed settlement to end litigation over the CBS board’s right to dilute voting power.
What’s Next
The Los Angeles Times reported Wednesday that talks with Moonves have centered on whether he will transition to a producer role. The CEO's contract was renegotiated in 2017, expires in 2021 and includes a clause allowing Moonves to remain with CBS in a production deal, the newspaper said.
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CBS CEO Les Moonves with his wife Julie Chen. Photo by David Shankbone/Wikimedia.
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