CBS chief quits after misconduct claims

International Desk: The head of US media giant CBS, Les Moonves, has resigned with immediate effect after allegations of sexual misconduct.

CBS had been investigating Mr Moonves since allegations appeared in the New Yorker in July - and fresh accusations from six more women appeared on Sunday.

Mr Moonves, 68, denies the allegations, calling the latest "appalling".

However, CBS said the company and Mr Moonves would donate $20m (£15.4m) to groups supporting the #MeToo movement.

Mr Moonves' tenure at the top of CBS, which he joined in 1995, has been marked by a power struggle with Shari Redstone who, through her family's business National Amusements, is the controlling shareholder in both CBS and the media conglomerate, Viacom.

Ms Redstone and Mr Moonves had been engaged in a court battle as he tried to thwart her plan to merge CBS and Viacom.

But the announcement of Mr Moonves' departure came at the same time as CBS said it was ending legal action against National Amusements. For its part, National Amusements said it would not seek a merger between the two companies for the next two years.

In a statement it announced that Mr Moonves would step down as chairman, president and CEO with immediate effect.

Joseph Ianniello will serve as president and acting CEO.

The Financial Times said Mr Moonves was resigning because this would entitle him to a hefty severance package, including stock options.

US media said the resignation package for Mr Moonves could amount to $100m.

However, CBS said he would not receive any severance benefits until the result of an independent investigation into his conduct.

The donation to organisations fighting for "equality for women in the workplace" would be deducted from the severance benefits, it said.

In a separate move, six directors have stepped down and six new ones have been elected.

Mr Moonves has been one of the most powerful executives in US media, joining CBS in 1995 as head of entertainment and becoming CEO of CBS Corp in 2006.

He issued a statement on Sunday saying: "Untrue allegations from decades ago are now being made against me that are not consistent with who I am."

Source: BBC


risingbd/Sept 10, 2018/Mukul