"I think it's horrifying and outrageous that any company, after dismissing somebody for allegations such as that, would not only resign a contract but allow that person to come back on the air", she said.
"I'm not interested in basically litigating something that is finished that makes my network look bad, " he said.
21st Century Fox has taken concerted action to transform Fox News, including installing new leaders, overhauling management and on-air talent, expanding training and increasing the channels through which employees can report harassment or discrimination.
During an appearance on CNN's "Reliable Sources" Carlson said she was upset to hear the report about O'Reilly's renewal.
Gretchen Carlson, a former FOX News anchor, sued her ex-boss Roger Ailes a year ago, claiming harassment and retaliation.
O'Reilly complained all weekend that he was being "smeared" and wanted to discuss the matter with Steel and Schmidt, so he appeared with them on Monday morning's edition of The Daily (a NY Times podcast) to complain about how very bad this ordeal has been for him.
Allegations on O'Reilly included repeated harassment, a nonconsensual sexual relationship and the sending of gay pornography and other sexually explicit material to her, according to the people briefed on the matter, the Times reported.
The Times' audio of their interview with O'Reilly was released several days after The Times reported that O'Reilly settled a new sexual harassment claim for a record $32 million in January, a month before Fox News' parent company, 21st Century Fox, renewed O'Reilly's contract.
"O'Reilly's suggestion that no one ever complained about his behavior is false", she said.
Kelly's comment followed a New York Times report revealing O'Reilly paid a $32 million settlement to a long time network analyst.
A Fox spokesman sought to explain O'Reilly's renewed contract in a statement, and said the network didn't know of the settlement amount at the time, according to The Blaze.
Shine, who was sacked from Fox News in early May, emailed Kelly back to say executives would deal with O'Reilly. "Thats' is a jaw dropping figure", Kelly told her studio audience, who'd already gasped at the figure. Perhaps it's his own history of harassment of women, which has, as you both know, resulted in payouts to more than one woman, including recently, that blinded him to the folly of saying 'I'm so sorry for the women of this company, who never should have had to go through that.' Bill Shine called me in response to my e-mail, promising to deal with O'Reilly.
"They stay silent out of fear", she said.
"Many women go into the settlement agreement because they just don't want to face potentially what could be coming at them", Huddy said. "The abuse of women, the shaming of them, the silencing of them after the fact, it has to stop".