CBS Withholds Moonves Severance, Shares Attractive

Moonves is likely to sue the board over the investigation as the findings not only stop him from collecting his severance but make him almost unhirable.

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Paramount Global Class B
(PARA)

The

The report found that “harassment and retaliation are not pervasive at CBS” but that the firm’s policies and practices did not reflect “a high institutional priority on preventing harassment and retaliation.” While we agree with the second part of that statement, we find the first part hard to reconcile with the large number of credible accusations against CBS executives, producers, and stars beyond Moonves. According to The New York Times, the firm is still paying a woman for her silence about sexual harassment by 60 Minutes founder, Don Hewitt, who passed away in 2009. Jeff Farber, Hewitt’s successor at 60 Minutes, was fired in September for threatening a reporter looking into sexual harassment allegations against him. Charlie Rose, a correspondent on 60 Minutes and co-host of CBS This Morning, was fired in November 2017 after reports about a number of women accusing him of sexual harassment and assault. The investigation revealed that CBS paid actress Eliza Dushku $9.5 million to settle her claims about retaliation after she accused “Bull” star, Michael Weatherly, of sexual harassment on the set of the show.

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About the Author

Neil Macker, CFA

Senior Equity Analyst
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Neil Macker, CFA, is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers media/entertainment and video game publishers.

Before joining Morningstar in 2014, Macker was a senior equity research associate for FBR & Co., where he covered the telecommunications services sector. Previously, he was an associate equity analyst for R.W. Baird and completed the summer associate rotational program at UBS Investment Bank. Before attending business school, Macker held analytical roles at Corporate Executive Board and Nextel.

Macker holds a bachelor’s degree from Carleton College, where he graduated cum laude, and a master’s degree in business administration from The Wharton School of the University of Pennsylvania. He also holds the Chartered Financial Analyst® designation.

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