Vince McMahon has stepped aside one day after WWE board opens inquiry about alleged $3 million hush payment.
Vince McMahon has stepped aside as CEO and chairman of World Wrestling Entertainment after an investigation into an alleged hush money payment to a former employee. The report says that McMahon paid this employee $3 million over an alleged affair.
McMahon is cooperating with the inquiry and the WWE says he will “retain his role and responsibilities related to WWE’s creative content.” Stephanie McMahon will take over as the interim CEO and chairwoman.
“I have pledged my complete cooperation to the investigation by the special committee, and I will do everything possible to support the investigation. I have also pledged to accept the findings and outcome of the investigation, whatever they are,” Vince McMahon said in a statement.
A special committee of WWE’s board has begun an investigation into McMahon. the investigation is into money that was paid to a former employee that McMahon allegedly had an affair with. According to The Wall Street Journal, this agreement from January prevented the employee “from discussing her relationship with Mr. McMahon or disparaging him.”
The WWE released a statement saying:
“Special Committee of the Board is conducting an investigation into alleged misconduct by its Chairman and CEO Vincent McMahon and John Laurinaitis, head of talent relations, and that, effective immediately, McMahon has voluntarily stepped back from his responsibilities as CEO and Chairman of the Board until the conclusion of the investigation.”
The company is taking these allegations “very seriously” and will work with an independent legal service to help with the review. A third party will also “conduct a comprehensive review of the company’s compliance program, HR function and overall culture.”
WWE said there is no other comment expected until the investigation is complete. Vince McMahon bought this company from his father, Vincent J. McMahon, back in 1982. Since then, he has built the WWE into a powerhouse and has helped create superstars such as The Rock, Hulk Hogan, and Stone Cold Steve Austin.
WWE is a publicly traded company where McMahon holds a majority of shareholders’ voting power. Shares have risen more than 30% year to date but did slide 4% before the opening bell on Friday.
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