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NBC fired Matt Lauer and kept his remaining $20M contract unpaid

A workplace complaint ended a 20-year Today run in a day; the network confirmed it would not pay out the rest of his contract.

NBC · Today · 2017-11-29

What happened

On 29 November 2017 NBC fired Matt Lauer, the anchor of Today for two decades, hours after the network received a complaint about inappropriate sexual behaviour in the workplace. NBC News chairman Andrew Lack's memo to staff said: 'On Monday night, we received a detailed complaint from a colleague about inappropriate sexual behavior in the workplace by Matt Lauer.' The complaint prompted a serious review and represented a 'clear violation of our company's standards' — with 'reason to believe' it was not an isolated incident.

Lack's memo set the network's priority in a sentence: 'Our highest priority is to create a workplace environment where everyone feels safe and protected, and to ensure that any actions that run counter to our core values are met with consequences, no matter who the offender.' The co-anchors announced the firing live on air. Days later NBC confirmed Lauer would not be paid for the remainder of his contract, reported at about $20 million through 2018. The show continued with its remaining anchors, and on 2 January 2018 Hoda Kotb was named the permanent co-anchor.

Why it happened

  • The anchor was the show's brand: two decades at the desk made Today inseparable from Lauer's name, so the network's standard — 'no matter who the offender' — priced the whole franchise in one memo.
  • NBC moved in a day and made the cost visible: confirming that the remaining contract would not be paid out said the network valued its own standard over a $20 million commitment.
  • The product outlived the person: Kotb was made permanent co-anchor two months later — the firing changed the show's face, not its existence.
What it costFired after 20 years; remaining $20M contract unpaidcostly

The lesson

When the network's standard is 'no matter who the offender', the anchor's value cannot shield him: a 20-year brand ended in a day, the contract went unpaid, and the show continued.

Aftermath

Today continued with Savannah Guthrie and Hoda Kotb, who had filled in since the firing; on 2 January 2018 NBC made Kotb the permanent co-anchor. NBC confirmed on 2 December 2017 that Lauer would not be paid for the remainder of his contract, reported at about $20 million through 2018. Lauer has not returned to television.

Sources

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