Back to the archive

The encyclopedia · People & Management · People decision · 2016

Roger Ailes built Fox News into a $2B empire — and was fired for harassment

Fox News was the most profitable cable network under Roger Ailes. Gretchen Carlson's 2016 lawsuit exposed a culture of harassment. Ailes was fired in 10 days.

Fox News · 21st Century Fox · 2016-07

What happened

Roger Ailes built Fox News from a startup in 1996 into the most-watched and most profitable cable news network in the United States, generating over $2 billion in annual revenue. But under Ailes's leadership, the network fostered a culture of harassment and intimidation that was an open secret within the organization.

In July 2016, former Fox News anchor Gretchen Carlson filed a harassment lawsuit against Ailes, alleging he had retaliated against her for rejecting his advances. Within days, other women — including anchor Megyn Kelly — came forward with similar allegations. 21st Century Fox hired a law firm to investigate.

Ailes was forced to resign within 10 days of Carlson's lawsuit, receiving a $40 million exit package. Fox News later settled with Carlson for $20 million and paid $32 million to settle a separate harassment claim against host Bill O'Reilly. The case illustrated how a culture of harassment can be sustained by a powerful leader's control over careers, and how the financial success of a business can mask the human cost of its culture.

Why it happened

  • Ailes used his control over careers to harass women and silence complaints for decades.
  • Fox News's financial success ($2B+ revenue) masked the culture of harassment.
  • Gretchen Carlson's lawsuit broke the silence, and other women came forward within days.
  • Ailes was fired in 10 days; Fox News paid $52M+ in settlements.
What it cost$52M+ in settlements; CEO fired; brand damagecostly

The lesson

A culture of harassment is sustained by the fear of career destruction. Ailes controlled who got on air, and that control silenced victims for decades. One lawsuit broke the silence.

Aftermath

Fox News overhauled its HR policies and settled multiple harassment claims. Bill O'Reilly was also fired in 2017. The case influenced the broader #MeToo movement and prompted media companies to re-examine workplace culture.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →