CBS has been ordered to pay almost $10 million to a former top executive it dismissed before completing an internal investigation into allegations that he made racist and sexist remarks, reports New York Post.
The remarks, according to court documents and his lawyer, included calling a Black anchor “a jive guy” and labelling another “too gay.” CBS allegedly acted under pressure from what the executive’s legal team called a “woke mob.”
Peter Dunn, who served as president of CBS Television Stations, was removed in 2021 after the Los Angeles Times published a report accusing him of fostering a hostile work environment. The broadcaster suspended Dunn and another executive and began an internal review. However, Dunn was fired before the investigation was completed. At the time, CBS said the termination would be treated “as though without cause” but that the company could revisit the matter once the probe concluded.
Months later, after completing its review, CBS attempted to reclassify Dunn’s dismissal as “for cause,” which would have allowed the company to withhold back pay and stock awards. That move led Dunn to pursue arbitration, where a panel of retired judges found the company had violated his employment contract.
The appeals panel ruled CBS had no right to delay its decision on whether the firing was for cause. The contract required the company to make that determination at the time of dismissal, not retroactively. Arbitrators said the broadcaster could not invent a “new and nebulous third option” to defer its choice.
CBS must now pay Dunn more than $7 million in compensation, plus interest, bringing the total to approximately $9.78 million.
“This was never about Peter’s conduct. It was to appease the woke mob,” Dunn’s lawyer, Larry Hutcher, told The New York Post. “It was like the Red Scare, and it was very shortsighted and unfair.”
CBS responded to the ruling by citing a procedural issue and insisted it disagrees with the outcome. “Four years ago, we removed Peter Dunn as head of the CBS Television Stations for reasons that have been well documented and reported publicly,” a spokesperson said. “This decision was not based on the substance of the allegations against Mr. Dunn.”
Hutcher argued that CBS should have simply suspended Dunn and waited for the investigation to finish before making any decision about his employment. “The proper and prudent response would have been to suspend him, continue to pay him, wait for the investigation to be completed, and then fire him,” he said.
He also noted that Dunn had spent more than 20 years at CBS and was focused on restoring his reputation. “We are grateful that the original arbitrator and the appeals panel agreed with Mr. Dunn that he had been wrongfully terminated,” Hutcher said. “We look forward to the award being confirmed in the Supreme Court so that we can enforce this judgment.”
CBS maintains it stands by the findings of its investigation and the resulting decisions. “We’re grateful for the many voices who spoke up in a process that led to significant cultural change at our television stations,” the company added.
The remarks, according to court documents and his lawyer, included calling a Black anchor “a jive guy” and labelling another “too gay.” CBS allegedly acted under pressure from what the executive’s legal team called a “woke mob.”
Peter Dunn, who served as president of CBS Television Stations, was removed in 2021 after the Los Angeles Times published a report accusing him of fostering a hostile work environment. The broadcaster suspended Dunn and another executive and began an internal review. However, Dunn was fired before the investigation was completed. At the time, CBS said the termination would be treated “as though without cause” but that the company could revisit the matter once the probe concluded.
Months later, after completing its review, CBS attempted to reclassify Dunn’s dismissal as “for cause,” which would have allowed the company to withhold back pay and stock awards. That move led Dunn to pursue arbitration, where a panel of retired judges found the company had violated his employment contract.
The appeals panel ruled CBS had no right to delay its decision on whether the firing was for cause. The contract required the company to make that determination at the time of dismissal, not retroactively. Arbitrators said the broadcaster could not invent a “new and nebulous third option” to defer its choice.
CBS must now pay Dunn more than $7 million in compensation, plus interest, bringing the total to approximately $9.78 million.
“This was never about Peter’s conduct. It was to appease the woke mob,” Dunn’s lawyer, Larry Hutcher, told The New York Post. “It was like the Red Scare, and it was very shortsighted and unfair.”
CBS responded to the ruling by citing a procedural issue and insisted it disagrees with the outcome. “Four years ago, we removed Peter Dunn as head of the CBS Television Stations for reasons that have been well documented and reported publicly,” a spokesperson said. “This decision was not based on the substance of the allegations against Mr. Dunn.”
Hutcher argued that CBS should have simply suspended Dunn and waited for the investigation to finish before making any decision about his employment. “The proper and prudent response would have been to suspend him, continue to pay him, wait for the investigation to be completed, and then fire him,” he said.
He also noted that Dunn had spent more than 20 years at CBS and was focused on restoring his reputation. “We are grateful that the original arbitrator and the appeals panel agreed with Mr. Dunn that he had been wrongfully terminated,” Hutcher said. “We look forward to the award being confirmed in the Supreme Court so that we can enforce this judgment.”
CBS maintains it stands by the findings of its investigation and the resulting decisions. “We’re grateful for the many voices who spoke up in a process that led to significant cultural change at our television stations,” the company added.
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