Moonves Fired With Cause, CBS Denies $120M Severance

CBS Corp. said it won’t pay former chairman and chief executive Leslie Moonves any of his $120 million severance package after reviewing the findings of a probe into allegations he sexually harassed and assaulted multiple women during his career.

In a statement from the CBS board of directors, the investigation concluded that there were grounds to terminate Mr. Moonves for cause. Mr. Moonves violated company policies, breached his employment contract and intentionally failed to cooperate fully with the investigation, the board said.

Here's the CBS Board Statement:

The Board of Directors of CBS has completed its investigation of former Chairman and CEO Leslie Moonves, CBS News, and cultural issues at CBS. 

With regard to Mr. Moonves, we have determined that there are grounds to terminate for cause, including his willful and material misfeasance, violation of Company policies and breach of his employment contract, as well as his willful failure to cooperate fully with the Company’s investigation. Mr. Moonves will not receive any severance payment from the Company. 

As a result of their work, the investigators also concluded that harassment and retaliation are not pervasive at CBS. However, the investigators learned of past incidents of improper and unprofessional conduct, and concluded that the Company’s historical policies, practices and structures have not reflected a high institutional priority on preventing harassment and retaliation. The investigation determined that the resources devoted to the Company’s Human Resources function, to training and development, and to diversity and inclusion initiatives have been inadequate, given the size and complexity of CBS’ businesses. Employees also cited past incidents in which HR and the Company did not hold high performers accountable for their conduct and protect employees from retaliation. 

The Board, which includes six new members, and the Company’s new management have already begun to take robust steps to improve the working environment for all employees. Among other things, the Company appointed a new Chief People Officer, is actively engaged in ways to enhance and reimagine the Human Resources function, and has retained outside expert advisors to develop other initiatives for promoting a workplace culture of dignity, transparency, respect and inclusion. These efforts will continue to be a high priority for the Board and the Company’s management, and we will continue to work together to communicate with our workforce in that regard. 

We would like to thank everyone who cooperated with the investigation and applaud CBS’ employees for remaining focused on their jobs during this very difficult time. We look forward to the people of CBS returning their full attention to the outstanding work that they do every single day.

Moonves was forced to resign in September after being accused of sexually assaulting several women and moving to harm the careers of those who rebuffed him.

The prospect of Moonves receiving a nine-figure exit package despite the seriousness of the allegations drew scrutiny from activist groups supporting the “#MeToo” movement against sexual misconduct in the workplace.

A spokesman for Moonves didn’t immediately respond to a request from The Wall Street Journal for comment. Moonves has said he regretted behavior that made women uncomfortable but denied having nonconsensual relations. He also denied harming the careers of any women who rejected his advances.

“Mr. Moonves vehemently denies any non-consensual sexual relations and cooperated extensively and fully with investigators,” Moonves’s attorney Andrew Levander, said in a statement adding that the conclusions of the CBS board were “foreordained and are without merit.”

View from the inside: CBS sources who were not authorized to speak publicly tell Dylan Byers at NBC,  there is deep and widespread resentment toward Moonves and say the severance denial is just desserts for the damage he has done to the brand.