CBS Directors, Les Moonves Negotiating His Exit

Les Moonves and wife Julie Chen

Independent board members of CBS Corp. are negotiating a possible exit for Chief Executive Leslie Moonves and asking for assurances of autonomy from controlling shareholder National Amusements Inc., according to The Wall Street Journal citing people familiar with the matter.

The fast-moving talks come as CBS and National Amusements, led by Shari Redstone, are trying to settle a legal dispute over control of the media company that is scheduled for trial in Delaware next month.

If terms can be reached on an exit for Moonves, CBS Chief Operating Officer Joe Ianniello would become interim chief executive while a search for a permanent replacement is launched, the people said.

Joseph Ianniello

Moonves is being investigated by law firms appointed by CBS’s board over sexual-harassment allegations reported by the New Yorker. His relationship with Ms. Redstone has become antagonistic over the past year as the two have battled over her desire to merge CBS and Viacom Inc.

The exit of Mr. Moonves, who has been at the broadcaster’s helm since 2006, would be a stunning downfall for an executive who has earned praise from Wall Street and rivals in the industry for guiding CBS to become the most popular network while navigating turmoil in the TV industry. On his watch, CBS’s premium cable channel Showtime has also grown and the company has launched new digital properties such as subscription streaming service CBS All Access.

The New Yorker article published last month included allegations from multiple women that Mr. Moonves sexually harassed them during his career. He has said he regretted any behavior that made women uncomfortable but denied any physical assaults or retaliating or harming anyone’s career when his advances were rebuffed.

The size of a potential payout to Mr. Moonves wasn’t clear. Any exit agreement is likely to contain a way for CBS to recoup some of the compensation if the law firms’ investigation—which will continue even if Mr. Moonves leaves—finds evidence of sufficient wrongdoing, according to a person familiar with the matter.

His contract calls for a severance package of more than $180 million if he were terminated “without cause,” including $117.5 million in salary and bonus awards, plus vesting of stock worth another $65 million, according to a securities filing. This includes $10 million that would be payable unless Mr. Moonves elects to provide services as a producer.