Yet Smiths demotion wasnt actually Ailess idea to begin with. Nor was Ailes very surprised when Smith finally approached him. Roger has known Shep has been gay for a long time, a current Fox staffer said. So why was Ailes suddenly afraid of everyone else knowing, too?
A few weeks before approaching Ailes about coming out, Smith surprised Fox staffers by bringing his boyfriend, a 26-year-old Fox producer named Gio Graziano, to a company picnic at Ailess compound in Garrison, New York. Held annually on Independence Day weekend, the picnic is a small gatheringonly executives, on-air talent, and their frontline producers are invitedso Smith likely felt comfortable bringing along his steady partner.
Despite the intimate venue, the new couple put several Fox executives on high alert. According to multiple sources with knowledge of the picnic, the most dramatic reaction came from Bill Shine, the channels Executive Vice President of Programming. Shine flipped out, one source said, after* Smith introduced Graziano to attendees. (Within and outside of Fox, Shine, who is 50 and grew up on Long Island, carries a reputation for insensitivity toward gay people. Hes a major, major homophobe, a Fox insider said.)
Back in New York City, Shine called a meeting among high-level executives to discuss a plan of action regarding Smith. His fear was that Sheps audience would implode, said an individual familiar with the meeting, during which Shine forcefully argued against Smith coming out. His argument was simple: Our audience is not ready for a gay anchor.
Shines plea wasnt particularly well-received. (Everyones jaws just dropped, a Fox insider said.) But the potential impact on Foxs ratings was enough to scare Ailes into believing his lieutenants apocalyptic scenario. Foxs unparalleled numbers are, after all, what give Ailes almost complete autonomy over his channels content, and immense power within Rupert Murdochs 21st Century Fox.
With Ailes approval, Shine quickly choreographed Smiths move from Foxs 7 p.m. block, where he anchored The Fox Report, to the 3 p.m. block, where he currently runs Shepard Smith Reporting. Anticipating Smiths desire to come out, Shine also coached Ailes on what to say when Smith finally approached him.