In a very disturbing 8,000-word story in the New Yorker, titled, “Trouble at the Top,” Ronan Farrow reports on allegations of sexual misconduct and harassment by CBS Chief Executive Les Moonves over a period of almost 20 years. The article also alleges that a frat-boy culture existed at the network and most particularly in the news division, including on the set of the network’s signature show 60 Minutes. It is rare in the corporate world for a CEO who sits on the company’s board of directors to have such allegations leveled against him. Moonves for his part apologized for any unwanted advances and has said that when he was told “no” he always stopped.
The spotlight is now on CBS’s board and how the company will respond. But it seems as if the board is paralyzed, watching the stock tank, losing $2 billion in market cap since the New Yorker story broke. While the board has moved to begin an internal investigation with two blue chip law firms, Moonves is still leading earnings calls with analysts and chairing board meetings. He even chaired the board meeting that discussed the allegations against him.
