Les Moonves: Former CBS CEO denied $120m severance following sexual harassment claims

CBS's board of directors says Moonves violated company policy and was uncooperative with the investigation

Leslie Moonves speaks onstage at the 2016 Milken Institute Global Conference on 4 May, 2016 in Beverly Hills, California. ((Photo by Alberto E. Rodriguez/Getty Images))

Les Moonves will not receive his $120m severance package after being accused of sexual misconduct – in what is shaping up to be one of the most expensive Me Too cases yet.

CBS's board of directors has found that the network's former CEO violated company policy and was uncooperative with an investigation into the allegations made against him.

The decision came after a five-month probe and caps the downfall of one of television's most influential figures. Moonves – full name Leslie – is one of the biggest entertainment power brokers so far to have been accused of sexual misconduct with repercussions on his career.

A lawyer for Moonves said the board's conclusion "are without merit" but did not say whether the former CEO would challenge it in arbitration.

Moonves was sacked in September after women said he subjected them to mistreatment including forced oral sex, groping, and retaliation if they resisted.

"This is an important reminder that harassment happens everywhere, and that in this moment, even someone who has been perceived as untouchable will be held accountable," said Fatima Goss Graves, a co-founder of the Time's Up Legal Defence Fund, which provides legal assistance to victims of assault, harassment or abuse. "I hope other corporations are learning that lesson."

CBS Corp, which is based in New York, said at the time of Moonves's ousting that it had set aside $120m in severance for him, but warned that he would not get the money if the board concluded it had cause to terminate him.

"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," CBS said in a statement.

Earlier this month, The New York Times said a draft report from the investigation found that Moonves deleted numerous text messages and was "evasive and untruthful at times".

Andrew Levander, an attorney for Moonves, said his client "vehemently denies any non-consensual sexual relations and cooperated extensively and fully with investigators".

"Consistent with the pattern of leaks that have permeated this 'process', the press was informed of these baseless conclusions before Mr Moonves, further damaging his name, reputation, career and legacy," Levander said.

Moonves was one of the highest-paid executives in the nation, making about $70m in each of the past two years.

Attorney Gloria Allred, who represents four women who have accused Moonves of misconduct, called on CBS to publicly release the details of the investigators' findings and compensate those with provable misconduct claims.

"The public has a right to know who at CBS was aware of Mr Moonves's alleged misconduct and when they knew of it," said Allred, whose clients all spoke to the investigators. "Instead of keeping this money and rewarding their corporation for Mr Moonves's alleged misconduct, they should share these many millions with those who can prove that they are victims."

Three major figures at CBS have lost their jobs over misconduct allegations: Moonves, 60 Minutes top executive Jeff Fager, and news anchor Charlie Rose.

Last week, CBS acknowledged that it reached a $9.5m confidential settlement last year with actress Eliza Dushku, who said she was written off the show Bull in March 2017 after complaining about on-set sexual comments from its star, Michael Weatherly.

The board said the investigation, which was conducted by two outside law firms, "concluded that harassment and retaliation are not pervasive at CBS".

Still, the board said investigators "learned of past incidents of improper and unprofessional conduct" and that CBS has not placed a "high institutional priority on preventing harassment and retaliation".

The 11-member board, which includes six new members who came aboard during a shake-up following Moonves's ouster, said it has "already begun to take robust steps to improve the working environment for all employees".

In a move criticised by women's rights activists, CBS had previously said Moonves would stay on as an adviser for up to two years, providing him with office and security services. The board did not say whether that decision remained in effect.

Last week, CBS revealed a list of 18 women's rights organisations that would receive $20 million donations with funds the company had previously said would be deducted from Moonves's severance.

The groups, which included Time's Up, praised the donations but called on CBS to publicly disclose the results of the Moonves investigation. It was unclear if CBS would do so.

Some activists involved in the Me Too movement have praised CBS for hiring outside legal firms to conduct the investigation, a decision that contrasted with NBC's handling of sexual misconduct allegations against Matt Lauer, who was fired last year as host of the Today show host. NBC's investigation, which was overseen by the company's general counsel, concluded that there was no culture of harassment at the news division.

Moonves's severance is believed to be one of the highest sums floated around as part of a sexual harassment case over the past year, since the Harvey Weinstein scandal broke in October 2017.

Lauer was making $20 million a year at NBC prior to his firing. After he was sacked, his potential severance was said to reach tens of millions of dollars – $30 million according to a Page Six report – a significant sum, but still only a quarter of the payout Moonves was looking at.

A senior NBC source, however, told CNN Money that Lauer "will not be paid past his last day of work".

AP contributed to this report.