CBS Suspends CEO Search, Extends Ianniello as Acting Chief Until Year-End
24 April 2019 - 9:39AM
Dow Jones News
By Benjamin Mullin
CBS Corp. said it suspended its search for a new chief
executive, extending the employment of its acting CEO Joe Ianniello
through the end of the year.
Mr. Ianniello has been leading the media company since
September, when Chairman and Chief Executive Leslie Moonves was
forced to resign as a result of numerous allegations of sexual
assault and misconduct.
Mr. Ianniello has made several high-profile appointments since
he took over, naming David Nevins chief creative officer and
appointing Susan Zirinsky to be the first female president of CBS
News. Ms. Zirinsky succeeded David Rhodes, under whose tenure CBS
News faced public scrutiny for sexual-harassment allegations
against former star anchor Charlie Rose and Jeff Fager, the
executive producer of its "60 Minutes" newsmagazine.
"Joe has demonstrated exceptional leadership during this time of
unprecedented transition at CBS," the company board of directors
said Tuesday. "He steadied the ship with some key appointments and
a commitment to cultural change, and steered it forward by focusing
CBS' operations around its growing direct-to-consumer
strategy."
The extension of Mr. Ianniello's employment agreement comes as
analysts are speculating that directors of CBS and sister company
Viacom Inc. may again explore a potential merger. Shari Redstone,
president of National Amusements Inc., the controlling shareholder
of CBS and Viacom, has previously pushed for a merger.
At some point before the end of the year, CBS's board will
likely evaluate a merger with Viacom, according to a person
familiar with the company's plans.
If the two companies do combine, that would seemingly force
either Viacom CEO Bob Bakish or the new chief of CBS to relinquish
their title.
Under his previous contract, Mr. Ianniello was eligible to
receive a $70 million severance payment if he wasn't the chief
executive of CBS at the end of June. That provision now won't
trigger until the expiration of Mr. Ianniello's extended term, the
person said.
Financial terms of Mr. Ianniello's amended contract weren't
disclosed.
During his tenure at CBS, Mr. Ianniello -- who was previously
chief operating officer -- has championed initiatives that helped
reduce the company's reliance on advertising, including the CBS All
Access streaming service. He has also pushed to grow the revenue
that CBS gets from its local television station affiliates and
pay-TV distributors.
CBS began the search for a new CEO last year after an attempted
merger with Viacom fell apart. The company retained a search firm,
Korn Ferry, and considered a variety of potential replacements
including former Walt Disney Co. Chief Operating Officer Tom Staggs
and CBS director Brian Goldner.
Write to Benjamin Mullin at Benjamin.Mullin@wsj.com
(END) Dow Jones Newswires
April 23, 2019 19:24 ET (23:24 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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