While his contract would entitle him a golden parachute of up to $US180 million, the board is reportedly offering him about $US100 million given the ongoing investigation into sexual harassment claims against him.
"This is a time when we all are appropriately focused on how we help improve our society, and we at CBS are committed to being part of the solution".
CBS Corporation shares were trading at $54.77 per share on Thursday afternoon, up $1.82 (+3.44%).
Moonves will be replaced by Chief Operating Officer Joe Ianniello as interim CEO, CNBC reported. Time's Up included a link to its own Go Fund Me page, urging CBS leaders to "use this money to provide power and justice to victims of abuse".
A CBS spokesman declined to comment. Moonves is "entirely recused" from the investigation, the statement from the board said.
Moonves received total compensation of $69.33 million in 2017, making him one of the highest paid USA executives.
CBS and Moonves are reportedly planning for the CEO's exit from the company he led for years-a company that loved him until he was accused of habitual sexual misconduct in an investigative report published by the New Yorker in August.
According to a filing from CBS in April, if Moonves is terminated for cause, or in the event of resignation without "good reason", no incremental payments and benefits would be made. "If you authorize payment of a big exit fee, you have to be acting in good faith to further shareholder interests".