FNC's "Key Man Clause" Was Insurance To Roger Ailes

Roger Ailes

Contracts with most of the biggest stars on Fox News contain something unusual: A "key man clause" giving them an escape hatch if the company's "key man," CEO Roger Ailes, exited.

In July, Ailes resigned under pressure amid sexual harassment allegations. Soon afterward, agents representing some of Fox's hosts started to take advantage of the clause.

Brian Stetler at CNNMedia reports some experts say the existence of the clauses is an example of improper corporate governance by 21st Century Fox.

"Ailes was putting his self-interest above the company and giving other people the right to escape their contracts or at least cause substantial renegotiation," said Columbia law professor John C. Coffee Jr., the author of "Gatekeepers: The Professions and Corporate Governance."

When asked about the clauses by CNNMoney, Coffee said, "It is quite an extraordinary provision. You wonder, who could have approved it?"

A spokesman for 21st Century Fox declined to comment on whether Rupert Murdoch or other top executives knew about the clauses years ago.

Ailes absolutely was the key man at Fox News. He was the founding CEO back in 1996 and ran the channel with an iron fist until the harassment scandal erupted in July.

His biggest stars with key man clauses included Bill O'Reilly, Sean Hannity, Van Susteren, and Shepherd Smith.

Conceivably any or all of them could have bailed on the network when Ailes resigned -- dealing a potentially crushing blow to Fox's high-rated programming schedule.

The clauses were also viewed, more ominously, as a way for Ailes to hurt Fox News if he were ever forced out.

Read More Now