CBS takes no action against CEO Moonves, seeks outside law firm to investigate
CBS announced its board took no action against CEO Les Moonves on Monday, saying it is seeking an outside law firm to conduct an independent investigation following allegations of sexual misconduct.
The board also postponed CBS’s annual shareholder meeting, which was previously scheduled to be held Aug. 10. It will announce a new meeting time at a later date.
The company’s board held a previously scheduled meeting Monday, where directors were expected to discuss the allegations against Moonves, a 68-year-old veteran media executive. Six women claimed Moonves, who has served as CBS’s top executive since 2006, sexually harassed them between the 1980s and late 2000s, according to a report Friday from The New Yorker.
CBS said last week it would investigate the allegations and take appropriate action. In a statement to The New Yorker, Moonves acknowledged that he “may have made some women uncomfortable by making advances. Those were mistakes, and I regret them immensely.”
“But I always understood and respected—and abided by the principle—that ‘no’ means ‘no,’ and I have never misused my position to harm or hinder anyone’s career,” Moonves said.
Shares of CBS closed about 5% lower Monday. The stock has slipped more than 10% since news of the report surfaced.
Analysts have speculated that Moonves could step down as CBS’s CEO, with reports suggesting that he has considered leaving his post while the company investigates the allegations. Moonves’ departure would increase the odds that CBS will merge with Viacom, as previously reported by FOX Business’ Charlie Gasparino. Moonves also planned to sell CBS to a larger corporation, but those plans likely would be put on hold, Gasparino reported.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CBS | NO DATA AVAILABLE | - | - | - |
CBS has been locked in a legal tussle with National Amusements, the company that controls CBS and MTV owner Viacom, over whether to combine the two media firms. Moonves has fought against the move, while Shari Redstone, the daughter of National Amusements founder Sumner Redstone, is pursuing a merger. A trial scheduled for October is expected to decide if CBS can move forward with a plan to dilute National Amusements’ voting control of CBS.
