Moonves Out, settled lawsuit, new appointed board members – Variety

CBS formalized the situation: Leslie Moonves leaves his position as President and CEO in the middle of a cascade of allegations of sexual assault, and CBS and National Amusements Inc. settled the legal battle that erupted in May over control of the society.

CBS's Director of Operations, Joe Ianniello, has been appointed acting CEO of the company. The reshuffle at the top includes the addition of six new members to the board of 14 CBS members, which is at odds with NAI.

"CBS is an organization of talented and dedicated people who have created one of the most successful media companies in the world," said Shari Redstone, vice president of CBS and president of NAI. "Today's resolution will benefit all shareholders, which will allow us to focus on managing CBS and transforming it for the future. We are confident in Joe's ability to serve as Acting CEO and pleased to welcome our new Directors, who bring valuable and diverse expertise and a strong commitment to corporate governance.

The new board members are: Candace Beinecke, Barbara Byrne, Brian Goldner, Richard D. Parsons, Susan Schuman and Strauss Zelnick. Board members leaving CBS are Arnold Kopelson, Leonard Goldberg, Charles Gifford, David Andelman and Doug Morris.

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The settlement agreement provides that CBS and Moonves will donate $ 20 million to organizations that support the #MeToo movement and professional equality among women – a recognition of the disturbing allegations made by a journalist. investigation against Moonves. Ronan Farrow for the New Yorker.

The magnitude of Moonves' potential termination benefit of more than $ 100 million has prompted criticism from advocacy groups, including Time's Up, given the seriousness of the charges against him.

"The donation, which will be made immediately, was deducted from any severance pay due to Moonves as a result of the ongoing independent investigation by the Board led by Covington & Burling and Debevoise & Plimpton," said CBS. "Moonves will not receive any severance pay at this time (with the exception of certain benefits and benefits that are fully vested and vested); any payment to be made in the future will depend on the results of the independent investigation and the subsequent assessment of the Board. "

The agreement also includes a commitment by NAI to reconsider the merger proposals of CBS and Viacom, which NAI also controls for at least two years. The pressure to bring together CBS and NAI was part of the frictions that led to the legal battle.

"In addition, NAI confirmed that it did not intend to propose a merger of CBS and Viacom and agreed that it would not make any such proposal for at least two years after the date. of the regulation, "the statement said. "NAI has reaffirmed that it will give a good faith consideration to any business combination transaction or other strategic alternative that, in the opinion of the independent directors, is in the best interests of the Company and its shareholders."

Council member Gordon appeared as the negotiator while CBS was engulfed by the Moonves scandal and litigation. As the October 3 trial date approaches, Gordon is credited with stepping up his efforts to reach consensus and resolve the growing problem created by the Moonves controversy.

"We thank them for their 24 years of service. Among his accomplishments, he put in place a strong management team, which gave us great confidence in accelerating our succession plans and ensuring continuity of leadership, "said Gordon. "This agreement maintains an independent board to determine the best way forward for the future of CBS on behalf of all shareholders."

The upheavals at CBS in recent months have left insiders in a difficult situation, especially as the company has been a bastion of management stability during Moonves' 23 year mandate. Moonves has long been a valued and respected figure from the grassroots, but allegations of sexual assault have had a huge impact. There has been some anger in some circles that Moonves did not withdraw earlier in order to spare the company's disturbing investigation and growing public criticism.

UltraViolet Women's Defense Group, which called on the board to send Moonves back in July, said the news of the "one-win" rule in a statement on Sunday night.

"This is proof that the era when powerful men abused and harassed women without consequence begins to end and demonstrates the lasting strength and strength of the #MeToo movement," the statement said. .

The group also called on CBS to expand the CBS culture survey, including executive producer "60 Minutes," Jeff Fager, also accused of misbehavior.

Moonves has been with CBS since 1995. He led the turnaround of the network with successes such as "CSI", "Survivor", "Everybody Loves Raymond" and "Two and a Half Years of Men". CBS Television in 2003 and the CEO of CBS Corp., after his separation from Viacom in 2006. Moonves was praised for having skilfully directed CBS during the digital transition. He led CBS to new heights by expanding content activities, transforming its revenue base by imposing MVPD retransmission consent fees, and strategically separating from its outdoor advertising units and stations. radio.

But the legacy of Moonves has always been tainted by the revelations of recent months. Moonves, 68, would have hoped that this reshuffle would occur in the years to come. Concerns regarding succession planning within Canadian Blood Services was another area of ​​concern for Redstone and CBS board members.

The new CBS board will have the impression of Redstone with the transition of nearly half of the directors. There is a concern within CBS about Redstone's intention for the company and the fate of the many executives who were closely related to Moonves.