'Queen of E!' May See Early End to Hollywood Story

As soon as today, Herman's four-year reign as chief executive of E! Networks could come to an abrupt but lucrative end, according to well-placed sources. Among other things, she has been accused of abusing her power and behaving in decidedly undignified ways, including brawling in the parking lot of a Hollywood burlesque club.

Although Herman has raised the profile and profitability of the celebrity-driven channel, she also has accumulated numerous detractors among rank-and-file employees, who complained that she created a fearful climate through firings and heavy- handed management.

An E! spokeswoman said Herman, 42, has acted appropriately throughout her tenure. Sources said Comcast Corp. and Walt Disney Co., co-owners of E! Networks, had signed off on a $20-million severance package. Her departure would not occur until she approves of the terms, expected to be presented to her today. The two media giants declined to comment on why Herman might be leaving six months before her contract expires.

Hollywood executives have long been known to be among the most coddled in the business world, often expecting to be treated like stars themselves. In Herman's case, however, more than a dozen sources in and out of the channel said she craved pampering to an extreme and, on occasion, used company resources to facilitate her aspirations.

Herman's potential undoing resulted in part from two anonymous letters sent to Disney and Comcast last fall, prompting an investigation and a subsequent audit. Comcast declined to comment on the investigation, and Disney said Wednesday that as a minority partner in the company it did not have authority over personnel, programming and day-to-day operations.

One of the letters, a copy of which was obtained by The Times, had a pleading tone. "It is desperation time here at E!" it said. "I pray that you will not turn a deaf ear."

The letter described two lavish baby showers it claimed that Herman threw for herself last fall at company expense. One, held at E!'s headquarters on Wilshire Boulevard, was "the single most expensive company party ever," according to the letter.

Sources said e-mails distributed at work by Herman's colleagues regularly informed employees about the details of Herman's baby registry and where to bring gifts.