Friday, July 27, 2018|4 p.m.
NEW YORK– CBS said Friday it is examining individual misbehavior claims after the company’s chief executive, Les Moonves, was the subject of a New Yorker story detailing sexual misconduct accusations.
The media business stated it takes all allegations of personal misconduct seriously. It stated the independent directors are “investigating claims that breach the company’s clear policies in that regard.”
CBS Corp.’s stock fell 6 percent– its worst one-day loss in nearly seven years– as the reports of the misconduct claims started to flow around noon Friday, triggering investor concerns Moonves might be forced to step down. The CBS chief has been an imposing figure in tv for decades, credited with turning around a network that had been bogged down for many years at the bottom rankings.
The company did not mention Moonves by name however said it provided the declaration in reaction to the New Yorker article, which was published on the publication’s site late Friday. It was written by Ronan Farrow, who wrote a Pulitzer Prize-winning story for the same publication uncovering a number of the allegations against Hollywood manufacturer Harvey Weinstein
The short article says six ladies who had professional dealings with Moonves state he sexually pestered them in between the 1980s and late 2000s. Four of the ladies described forcible touching or kissing during company meetings, it states, while two stated that Moonves physically frightened them or threatened to derail their professions.
Moonves acknowledged in a statement that there were times years ago when he may have made some females unpleasant by making advances. But he says, “Those were errors, and I regret them exceptionally.”
He stated that he never misused his position to harm or hinder anybody’s profession.
The New Yorker article also said a culture of misconduct extended from Moonves to other parts of the corporation, consisting of CBS News. It stated men because division who were accused of sexual misbehavior were promoted, even as the company paid settlements to women with grievances.
CBS said that once the investigation by independent members of its board is completed, the full business board will evaluate the findings and “take suitable action.”
It took issue in a statement, however, with the New Yorker article for not accurately representing “a larger organization that does its finest to treat its 10s of countless employees with dignity and regard.”
Mooves is the current media giant to end up being involved in sexual misbehavior claims since the downfall of Weinstein in October activated the #metoo social media motion.
In November, CBS fired veteran news host Charlie Rose over accusations he had groped females, strolled naked in front of them and made raunchy telephone call. Rose has apologized for his habits but questioned the accuracy of some of the claims.
In December, Moonves signed up with a meeting of chief executives of nearly every significant Hollywood studio, TV network and record label to establish a commission to comb sexual misconduct in the industry. They accepted money the Commission On Sexual Harassment and Advancing Equality in the Workplace, and chose Anita Hill to chair it.
The allegations come as CBS remains in the middle of a legal battle with its controlling shareholder, National Amusements, which has been promoting a merger with Viacom, also controlled by National Amusements.
CBS and Viacom were when part of the very same company, called Viacom, however were divided in 2005 into separate entities, both controlled by Sumner Redstone. His child, Shari Redstone, has actually been pushing to reunite the companies under one corporate umbrella. Moonves has actually been opposed to the deal.
CBS said its current “management team has the full support of the independent board members” in the ongoing litigation involving National Amusement. The legal case is being played out in Delaware court.
National Amusement jumped into the debate with a declaration denying exactly what it called “the harmful insinuation that Ms. Redstone is in some way behind the claims of inappropriate individual behavior by Mr. Moonves or today’s reports.”
” Ms. Redstone hopes that the investigation of these accusations is thorough, open and transparent,” the company said.
Moonves, among the most effective executives in media, has actually led CBS for 20 years, consisting of the 12 years given that it split from Viacom.
He revived the business, which operates the CBS network, Showtime and other entities, with hit shows like “NCIS” and “The Big Bang Theory.”
Moonves also presented different streaming CBS and Showtime services as more individuals “cut the cord” and view TELEVISION online. The network regularly tops in prime-time ratings.
While CBS’s stock took a hit, Viacom’s rose dramatically as financiers expected that a mix of CBS and Viacom could end up being more likely should Moonves be forced out. Viacom closed up 4.6 percent.
Moonves was the No. 2 greatest paid CEO of a significant public company in 2017, inning accordance with an analysis by The Associated Press and Equilar, an executive information company. He made $68.4 million in 2015, behind just chip maker Broadcom’s CEO.
Before signing up with CBS, he was president of Warner Bros. Television, where he managed the advancement of hit TELEVISION programs “Friends” and “ER.”
Moonves, who is wed to TV character and CBS manufacturer Julie Chen, was inducted into the Tv Academy Hall of Fame in 2013. He likewise won the Milestone Award from the Producers Guild of America that year.
Associated Press Technology Author Mae Anderson contributed to this report.