In a July 27th New Yorker exposé, several women had published accusations of Moonves’ sexual misconduct, followed quickly by CBS’ hiring of two New York law firms to lead an internal investigation. While this internal investigation is still ongoing, a recent article by Ronan Farrow detailed six further accusations of sexual harassment or assault by Moonves. Moonves’ departure was announced mere hours after the publication of this report.
Moonves’ contract dictated Moonves a substantial severance package over the next four years, but if fired ‘for cause’ much of the package will be eroded. Up to $120 million is going to be held in a ‘Holdback Trust’ pending the results of their internal investigation.
The departure is already making waves throughout the industry. Doug Morris is now leaving CBS’ board of directors, having joined in 2007 as chairman and CEO of Vivendi’s UMG. Morris had served on the compensation committee.