CBS rises as it reportedly begins settlement talks with embattled CEO Les Moonves
The CBS board is in settlement talks with CEO Les Moonves for his exit from the company, CNBC reported Thursday.
Shares of CBS fell as much as 3% in early trading, before rising into the green.
After an initial spike, shares of CBS fell about 0.3% on Thursday after CNBC reported the broadcaster was in settlement talks with CEO Les Moonves for his exit from the company following sexual-misconduct allegations brought against him by six women.
If the talks are successful, Moonves' right-hand man, COO Joe Ianniello, will serve as interim CEO, CNBC reported, citing people close to the negotiations.
A sticking point is Moonves' exit package, according to the report. While his contract would entitle him a golden parachute of up to $180 million, the board is reportedly offering him about $100 million given the ongoing investigation into sexual harassment claims against him. The board is also reportedly seeking the right to claw back a portion of that package depending on the findings of the investigation.
Moonves' potential exit from CBS comes at a time of twin sources of turmoil for the company. CBS' stock is down 11% this year and has lost nearly a third of its value since hitting a high of $70 in April 2017.
CBS declined to comment to CNBC and did not immediately respond to a request for comment from Business Insider.
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