Secret review into Seven West Media reveals 'diabolical' culture problems

One staff member told the review they saw a manager throw a chair at another employee. (Getty Images: Brendon Thorne/Bloomberg)

A 2024 review found allegations of sexism, bullying and a toxic culture at Seven West Media.

The review was commissioned after court claims the company reimbursed Bruce Lehrmann for drugs and sex workers to secure an interview.

The company's new owner says it has since had a "cultural reset".

A bombshell review of Seven West Media in 2024 has been told of a "diabolical" corporate culture, with allegations that sexism, bullying and harassment were rife and "sacred cow" executives favoured by then-chairman Kerry Stokes were protected amid a ratings obsession.

The ABC has seen a copy of the 65-page review, conducted by independent consultancy Interchange.

It was concluded in July 2024 and has never been made public.

The review was commissioned by the former Seven West board in May that year in the wake of Federal Court claims by former Spotlight producer Taylor Auerbach, that the network had reimbursed ex-Liberal staffer Bruce Lehrmann for drugs and sex workers in order to secure an interview with him.

Former producer Taylor Auerbach's claims to Federal Court were partly why the culture review was commissioned.

Mr Auerbach acknowledged he had never seen an invoice for this and Seven vehemently denied the claims, saying it was "appalled" by them.

Former Seven chief executive James Warburton resigned in April 2024 following those claims as well as the network's on-air misidentification of the Bondi stabber, and was replaced by Jeff Howard.

Mr Warburton had previously announced his intention to step down in June.

Kerry Stokes was chairman of Seven West Media at the time of the review. (ABC News: Andrew O'Connor)

Mr Lehrmann was ultimately found by the Federal Court, on the balance of probabilities, to have raped colleague Brittany Higgins in a federal Parliament House office in 2019.

That finding was made as part of a defamation trial and remains untested in a criminal court. Mr Lehrmann has denied the rape allegation.

The Interchange review into the network's corporate culture interviewed Kerry Stokes and the rest of the board, as well as half a dozen advertising clients and agencies, and did 127 interviews or small focus groups with Seven employees across Sydney, Melbourne, Brisbane and Perth.

Interchange also drew on more than 800 responses to a company survey.

The report does not suggest that Mr Stokes, Mr Warburton or other senior management were aware of or involved in the alleged incidents discussed by staff.

Mr Stokes declined to comment for this story.

"Immoral, unethical and illegal behaviour has been prevalent for a very long time," one anonymised NSW Seven West leader told the review.

The Seven West Media board commissioned the review in 2024. (ABC News: Glyn Jones)

Another interviewee said: "There are people in this office every day crying and there is nothing I can do about it."

"The culture here is abhorrent … I know the stuff they have been exposed to. Some of them have been touched up; the less pretty ones get verbally abused. Pick your poison. It's not just the girls either, but they cop it the worst."

 "We've had some diabolical situations culturally, but they've been allowed to keep going," another said.

"Certain people in power who have continually abused their position time and time again; nothing happens because they are a protected species."

Interviewees told Interchange that they immediately believed the Lehrmann allegations "because of other misconduct they witnessed."

Other testimonies in the final report include:

The company-wide survey found 63 per cent of respondents did not know what Seven West Media's organisational purpose was, 59 per cent were not clear on its future strategy, and 48 per cent said "yes" there were psychosocial hazards in the workplace.

The review also painted a picture of an organisation with "low commercial acumen", fixated on Channel Nine and divided into "territorial tribes" with the executive committee "Kings and Queens of the drama cyclone".

If you "lose the ratings, you've got Kerry on your doorstep," one staff member told the review. (AAP Image: Richard Wainwright)

"We make drama, but internally, if you want drama, you can set the clock for 8:58 every morning when the ratings come out," one executive said.

The consultants noted the influence of proprietor Kerry Stokes on Seven West Media in contrast to Channel Nine, which is controlled by a board representing institutional investors.

"Numerous interviewees mentioned phone calls or emails from the chairman that required them or their direct reports to justify a dip in ratings," the review wrote.

"If you lose the ratings, you've got Kerry on your doorstep," said one team member in NSW. "That's what we're worried about."

The review found Seven West Media was operating "more like a not-for-profit, in service of society, yet is unwilling to part with the glamorous side of what traditional media offered when the money flowed."

Even board members joined in the criticism, telling Interchange the company "generates a billion dollars of revenue but also a billion of costs," and there were "so many people on old media salaries that just don't add up anymore".

The review also found Seven "didn't pivot fast enough" after the arrival in Australia of streaming services like Netflix, Disney+ and Amazon, and digital advertising platforms like Google and Meta, resulting in "anxiety, denial and outlets of bad behaviour" in the company.

Ryan Stokes (left) is now chairman of Southern Cross Media, which owns Seven, previously run by his father (right). (AAP: Mick Tsikas)

The Interchange review was conducted as the ABC's Four Corners program was investigating the culture at Channel Seven — an episode which subsequently went to air in August 2024.

Since the review, Seven West Media was bought for $385 million by Southern Cross Media in a deal com…