CBS Corporation’s board of directors is selecting outside counsel to conduct an independent investigation, it said on Monday, following allegations of personal misconduct against CEO Leslie Moonves.

“No other action was taken on this matter at today’s board meeting,” CBS said in a statement, without mentioning Moonves or the allegations.

Moonves is the subject of a New Yorker story detailing sexual misconduct allegations.

On Friday CBS stock fell 6% – its worst one-day loss in nearly seven years – as reports of the misconduct allegations began to circulate. The CBS chief has been a towering figure in television for decades, credited with turning around a network that had been mired for years at the bottom of the ratings.

CBS stock fell further on Monday, down $2.44, or roughly 4.5%, to $51.56.

On Friday the New York-based company issued a statement in response to the New Yorker article, which was published on the magazine’s website. The article was written by Ronan Farrow, who wrote a Pulitzer prize-winning story last year for the same magazine uncovering many of the allegations against Hollywood producer Harvey Weinstein

The article says six women who had professional dealings with Moonves say he sexually harassed them between the 1980s and late 2000s. Four of the women described forcible touching or kissing during business meetings, it says, while two said Moonves physically intimidated them or threatened to derail their careers.

Among the women quoted in the article were the actor Illeana Douglas, writer Janet Jones and producer Christine Peters. Farrow said all the women quoted in the article had to overcome “a lot of fear of retaliation to tell very serious stories of sexual misconduct about Les Moonves”.

Moonves acknowledged in a statement that there were times decades ago when he may have made some women uncomfortable by making advances. But he said: “Those were mistakes, and I regret them immensely.”

He said he never misused his position to harm or hinder anyone’s career.

The New Yorker article also said a culture of misconduct extended from Moonves to other parts of the corporation, including CBS News. It said men in that division who were accused of sexual misconduct were promoted, even as the company paid settlements to women with complaints.

Once the investigation by its independent board members is completed, CBS said, the full corporate board will review the findings and “take appropriate action”.

It took issue with the New Yorker article, however, for not accurately representing “a larger organization that does its best to treat its tens of thousands of employees with dignity and respect”.

Mooves is the latest media giant to become embroiled in sexual misconduct allegations since the downfall of Weinstein in October triggered the #MeToo social media movement.

In November, CBS fired veteran news host Charlie Rose over allegations he groped women, walked naked in front of them and made lewd phone calls. Rose has apologized for his behavior but questioned the accuracy of some of the claims.

In December, Moonves joined a meeting of chief executives of nearly every major Hollywood studio, TV network and record label to establish a commission to combat sexual misconduct in the industry. They agreed to fund the Commission On Sexual Harassment and Advancing Equality in the Workplace, and chose Anita Hill to chair it.

CBS is in the middle of a legal battle with its controlling shareholder, National Amusements, which has been pushing for a merger with Viacom, also controlled by National Amusements.

CBS and Viacom were once part of the same company, known as Viacom, but were split in 2005 into separate entities, both controlled by Sumner Redstone. His daughter, Shari Redstone, has been pushing to reunite the companies under one corporate umbrella. Moonves has been opposed to the deal.

CBS said its current “management team has the full support of the independent board members” in the ongoing litigation involving National Amusements. The legal case is being played out in Delaware court.

National Amusements jumped into the controversy with a statement denying what it called “the malicious insinuation that Ms Redstone is somehow behind the allegations of inappropriate personal behavior by Mr Moonves or today’s reports”.

“Ms Redstone hopes that the investigation of these allegations is thorough, open and transparent,” the company said.

Moonves, one of the most powerful executives in media, has led CBS for two decades, including the 12 years since it split from Viacom. He revived the company, which operates the CBS network, Showtime and other entities, with hit shows like NCIS and The Big Bang Theory.

He also introduced separate streaming CBS and Showtime services as more people “cut the cord” and watch TV online. The network consistently tops in prime time ratings.

While CBS’s stock took a hit, Viacom’s rose sharply as investors anticipated that a combination of CBS and Viacom could become more likely should Moonves be forced out. Viacom closed up 4.6%.

Moonves was the No 2 highest paid CEO of a major public company in 2017, according to an analysis by the Associated Press and Equilar, an executive data firm. He made $68.4m last year, behind only chip maker Broadcom’s CEO.

Before joining CBS, he was president of Warner Bros Television, where he oversaw the development of hit TV shows Friends and ER.

Moonves, who is married to TV personality and CBS producer Julie Chen, was inducted into the Television Academy Hall of Fame in 2013. He also won the Milestone Award from the Producers Guild of America that year.