CBS PLAYS HARDBALL WITH MOONVES: Says No to Settlement – By Todd Horwitz, Bubba Trading.

 

The CBS Corporation, battered by scandal and facing a leadership vacuum, said its former chief executive, Leslie Moonves, misled the company about multiple allegations of sexual misconduct and tried to hide evidence as he made a frenzied attempt to save his legacy and reap a lucrative severance. As a result, the company said Mr. Moonves would not receive his $120 million exit payout.

“We have determined that there are grounds to terminate for cause, including his willful and material misfeasance, violation of company policies and breach of his employment contract, as well as his willful failure to cooperate fully with the company’s investigation,” the CBS board said in a statement on Monday.

The board, which met over several days last week, decided on Monday afternoon after reviewing information gathered by lawyers hired by the company to investigate claims against Mr. Moonves, who was forced out in September, as well as the broader workplace culture at the network.

Mr. Moonves “engaged in multiple acts of serious nonconsensual sexual misconduct in and outside of the workplace, both before and after he came to CBS in 1995,” according to a late November draft of the investigators’ report reviewed by The New York Times.

A lawyer for Mr. Moonves on Monday said the CBS board’s conclusions were without merit. “Mr. Moonves vehemently denies any non-consensual sexual relations and cooperated extensively and fully with investigators,” Andrew Levander, Mr. Moonves’s lawyer, said in a statement.

The investigation didn’t just focus on Mr. Moonves but the overall culture of CBS. While the CBS board said the investigators determined that harassment and retaliation aren’t pervasive at CBS, they found that the company’s “historical policies, practices and structures have not reflected a high institutional priority on preventing harassment and retaliation.”

Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.