Moonves will stay in his position as CEO during the investigation into his alleged misconductGETTY IMAGES
CBS Chair, President & CEO LES MOONVES' future with the company "took a precarious turn" yesterday after the BOD took the "extraordinary step of launching an independent investigation into allegations that he sexually harassed several women more than a decade ago," according to Meg James of the L.A. TIMES. CBS' BOD "stopped short of suspending Moonves while the review is ongoing, a move that could pave the way for an eventual settlement." The decision to "keep him at the helm was immediately assailed by legal experts." Even "without stepping aside, the ongoing investigation will cast a long shadow over Moonves’ reign and add to the turmoil already gripping the company" (L.A. TIMES, 7/31). CNBC's Julia Boorstin said it sounds like CBS is "going to try to make it 'business as usual' while the investigation happens" ("Closing Bell," CNBC, 7/30).
SAFE FOR NOW: In N.Y., Edmund Lee writes Moonves "survived" CBS' BOD meeting yesterday. It ended the speculation that Moonves would "face immediate consequences for his alleged behavior." The lack of action by CBS was "striking at a time when some media companies have swiftly removed prominent employees who were accused of misconduct." Yesterday's meeting began around noon and "lasted more than three hours." Sources said that Moonves participated in the session from L.A., but he "recused himself during discussions about his situation" (N.Y. TIMES, 7/31). Also in N.Y., Alexandra Steigrad writes Moonves "lives to fight another day" (N.Y. POST, 7/31). The N.Y. POST's Ian Mohr noted Moonves was "spotted out on Sunday night at Nobu Malibu with his wife, JULIE CHEN, and a group of friends" (NYPOST.com, 7/30).
ANOTHER LAYER: ABC's Eva Pilgrim noted CBS is in the "middle of a heated merger battle with Viacom that has ended up in court," and some are alleging the claims against Moonves "may stem from that" ("GMA," ABC, 7/29). Yale professor Jeffrey Sonnenfeld noted some "are wondering" whether CBS BOD Vice Chair & Dir SHARI REDSTONE "had any role in this investigation, which she insists she didn't" ("Worldwide Exchange," CNBC, 7/30). The Wall Street Journal's Keach Hagey said the CBS BOD is "in a pickle," because if they "get this wrong, they're in big trouble" ("Squawk Box," CNBC, 7/31).
