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CBS Corporation on Tuesday named Richard Parsons, a longtime business and media executive, acting chairman of the board.
Mr. Parsons, the former President of Time Warner and Citigroup, replaces Leslie Moonves, who was the company's long-time CEO and chairman of the board. Earlier this month, CBS negotiated Mr. Moonves' departure after new allegations of sexual harassment were brought against him. As part of the same agreement, the board of directors also installed six new directors, which increased to 13.
Parsons was appointed to become a director earlier this year and he formally joined one of six new board members earlier this month. It was unanimously approved by the CBS Board of Directors, the company said in a statement, which also announced the resignation of two other board members.
"Dick Parsons combines deep industry knowledge with unparalleled corporate and board experience," said Candace Beinecke, Chair of the Nominating and Governance Committee at CBS. "We are fortunate to have Dick in this leadership role."
Parsons is the ally of the company's majority shareholder, Shari Redstone. Redstone, vice-chair of the board, has campaigned for a merger with Viacom, the very old cable company behind MTV and Nickelodeon, which she also controls. She had been involved in a protracted legal battle with Mr. Moonves, but all parties have now agreed to dismiss the lawsuit.
Ms. Redstone and Mr. Parsons chose the other new board members who joined earlier this month, three people aware of the process told the New York Times.
On Tuesday, the company said Bruce Gordon and William Cohen, the two long-standing board members who resigned, had decided to do so in order to "focus on other personal and professional priorities" .
Among the most important priorities for Board members will be the pursuit of the search for a new Chief Executive Officer to replace Mr Moonves. (The CBS Board of Directors has recruited two law firms to investigate the claims against Mr. Moonves and the workplace culture within the network.) Joseph Ianniello, director of CBS operation appointed the interim CEO.
"We have a distinguished and independent board that is committed to serving the best interests of all shareholders," said Parsons, 70, in a statement. "I think I'm speaking on behalf of all board members as I look forward to learning about CBS's exciting opportunities and how we can help guide and support the growth of the CBS. society.
CBS has been plagued by scandals and infighting for most of the year, most involving either Moonves or Redstone – or both.
In May, CBS, along with several directors, sued Ms. Redstone, claiming that she had breached her fiduciary duty to the company's shareholders by lobbying for a merger with Viacom. The lawsuit uncovered deep factions on the board, with an apparently loyal group to Ms. Redstone, another with Mr. Moonves, and others discussing the direction the company should take.
The settlement earlier this month was aimed at resolving the potential merger problem. It also resolved the release of Mr Moonves, who made CBS the most watched television network, but which has been under intense pressure since July. This month, the New Yorker published an article by investigative journalist Ronan Farrow in which six women accused Mr. Moonves of sexual harassment. Then, in September, the magazine published another article by Mr. Farrow in which six other women made detailed allegations against Mr. Moonves.
As part of the deal, the network said it would pay $ 20 million to one or more organizations that support women's equality in the workplace. The donation will be deducted from a potential severance payment to Mr. Moonves, although he could still get more than $ 120 million, depending on the results of the investigation.
Edmund Lee contributed to the report.
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