CBS hires ex-prosecutor, SEC chair to probe CEO allegations – Info Advertisement
Former federal prosecutor Nancy Kestenbaum of Covington & Burling and Mary Jo White, former Securities and Exchange Commission chairman, of Debevoise & Plimpton will lead the inquiry, CBS said Wednesday in a statement. The CBS board committee comprises Bruce Gordon, Linda Griego and Robert Klieger.
Kestenbaum and White are set to “conduct a full investigation of the allegations in recent press reports about Chairman and CEO Leslie Moonves, CBS News and cultural issues at all levels of CBS,” the network said in the statement.
Several women have accused Moonves of misconduct including forced touching and kissing during business meetings, allegations that come just as the CEO is locked in a battle for control of the network with Vice Chairman Shari Redstone, heir to 95-year-old media mogul and key shareholder Sumner Redstone.
The internal panel formed Thursday includes board members with ties to each side of the Moonves-Redstone battle. Gordon and Griego have served on the CBS board for more than a decade, and supported Moonves in his bid to dilute the Redstone family’s controlling stake in the company. Klieger, a partner at a Los Angeles law firm, joined the CBS board last year. He has worked as an attorney for the Redstone family.
The women who accused Moonves of misconduct said they were physically intimidated and that their careers suffered when they refused his advances. The claims came to light in a New Yorker magazine article published July 27 that also described a culture of harassment at CBS.
Moonves has acknowledged there were times decades ago that he may have made some women uncomfortable, but said he never used his position to harm anyone’s career.
Moonves, 68, who’s led the company since 2006, has been a major force in TV since the 1980s. CBS has led audience ratings for most of the past decade based on a broad slate of comedies, procedural shows like “CSI” and live sports.
Moonves has clashed repeatedly in recent years with Shari Redstone over the prospect of combining CBS with parent Viacom. The vice chairman has advocated a merger to help boost flagging Viacom, and wanted Moonves to run the joined company. Moonves opposed the idea, believing Viacom’s best days are behind it.
The company is scheduled to report second-quarter results after markets close on Aug. 2.
— Bloomberg News
Article Prepared by Ollala Corp