Comcast president Mike Cavanagh steps in for Jeff Shell as NBCUniversal CEO resigns following misconduct probe – update

UPDATED: Comcast dropped a bombshell on Sunday, announcing that NBCUniversal CEO Jeff Shell is leaving the company effective immediately. The “friendly” decision follows an investigation, led by outside counsel, into a complaint of improper behavior by Shell.

“Today is my last day as CEO of NBCUniversal,” Shell said in a statement. “I had an inappropriate relationship with a woman at the company, which I deeply regret,” says Shell, who is married. “I am truly sorry to have let down my colleagues at Comcast and NBCUniversal, they are the most talented people in the business and it has been a privilege to have had the opportunity to work with them over the past 10 years .”

Comcast made the announcement in a brief press release; no successor has been named. In a memo to employees, Comcast Chairman and CEO Brian Roberts and President Mike Cavanagh said Shell’s senior team will report directly to Cavanagh in the meantime.

They include Donna Langley, president of Universal Filmed Entertainment and Mark Lazarus, head of NBCU Television & Streaming, and Pearlena Igbokwe, president of Universal Studios Group, Mark Woodbury, Head of Universal Destinations and Experiences and Linda Yaccarino, Head of Global Advertising and Partnerships.

“We built this company on a culture of integrity,” Roberts and Cavanagh wrote in the memo, saying they were “disappointed” to share the news of Shell’s departure. “Nothing is more important than how we treat each other. Count on your leaders to create a safe and respectful workplace. When our principles and policies are violated, we will always act quickly to take appropriate action, as we have done here.”

Roberts and Cavanagh tried to calm NBCU staff.

“Please note that NBCUniversal is performing very well both operationally and financially, and we could not be more excited about our position and our prospects going forward,” they said. “We are fortunate to have an experienced group of world-class executives at the helm of this incredible company.”

The big move comes as NBCUniversal faces a big decision about what to do with its stake in Hulu. It also comes as the company finally got some good news about its fledgling streamer, Peacock, after a rocky first few years.

Last January, Shell talked about how positive he and his colleagues at Comcast were about the company’s investment in Peacock and how soon it would be profitable. The company said Peacock will surpass 20 million by the end of 2022, more than double its number at the start of the year. It added 5 million subscribers in the quarter thanks to its Spanish-language World Cup coverage, original programming, other live sports, and the addition of first-run movie titles and NBC and Bravo series previously to Hulu.

On the film side, Shell was a big proponent of the collapsing theater windows that go on Peacock day and night.

Shell is a Comcast veteran. He became CEO of the company’s NBCUniversal division in January 2020, succeeding Steve Burke. Previously, Shell was president of NBCUniversal Film and Entertainment. Prior to that, he was president of NBCUniversal International and president of the Comcast Programming Group. He has been a trusted lieutenant of Comcast CEO Roberts for many years.

Cavanagh joined Comcast in 2015 as CFO. Before that, he was co-CEO of JPMorgan Chase’s Corporate & Investment Bank and before that he was CFO of the bank for six years, where he helped the bank weather the financial crisis. He was promoted to president last fall to work closely with Roberts.

Shell’s departure comes less than three years after another NBCUniversal executive, Vice Chairman Ron Meyer, left abruptly after disclosing an affair and trying to extort her. An affair with the same actress and its aftermath also led to the demise of Warner Bros. chairman and CEO, Kevin Tsujihara.

Jeff Zucker resigned as CNN’s president last year, citing his inability to disclose what he described as a “consensual relationship” with a colleague.

Jill Goldsmith contributed to this story.