WWE CEO Vince McMahon has quit the company after an investigation was launched into allegations he paid a former employee $3 million to keep quiet about an affair.
The investigation began in April and found nondisclosure agreements containing allegations by former WWE employees of wrongdoing by McMahon and John Laurinaitis, WWE’s head of talent relations.
Now, WWE has issued a statement confirming that McMahon has “voluntarily retired from his responsibilities.”
His daughter and wife of wrestling legend Triple H, Stephanie, will become CEO and interim president.
The statement read, “WWE (NYSE: WWE) and the Board of Directors announced today that a special committee of the Board of Directors is conducting an investigation into the alleged wrongdoing of its President and CEO Vincent McMahon and John Laurinaitis, Head of Talent Relations.
And that effective immediately, McMahon has voluntarily stepped down from his duties as CEO and chairman of the board pending the conclusion of the investigation.
“McMahon will maintain his role and responsibility regarding creative WWE content during this time and remain committed to collaborating on the ongoing review.”
What is known about the case
According to a Wall Street Journal report, WWE CEO Vince McMahon is under investigation by the company’s board of directors for agreeing to pay a secret $3 million settlement to a former employee with whom he was allegedly having an affair.
The separation agreement, reportedly reached in January, prevents the unnamed former employee from “discussing her relationship with or disparaging Mr. McMahon,” according to the Journal.
The investigation, which began in April, has “unearthed other legacy confidentiality agreements involving allegations by former WWE employees about Mr. McMahon’s wrongdoing,” according to the Journal. Other allegations of misconduct were reportedly made against John Laurinaitis, the company’s head of talent relations.
The WWE Board of Directors received an email on March 30 alleging that 76-year-old McMahon hired the employee “with a salary of $100,000 but increased it to $200,000 after having a sexual relationship with her.” had begun”. The email also alleges that McMahon gave the former employee, who is 41 and was hired as a paralegal, as a “toy” for Mr Laurinaitis.
WWE did not immediately respond to CNN’s request for comment on the story.
However, in a statement to the Journal, a company spokesman said WWE was cooperating with the investigation and that McMahon’s relationship with the former employee was amicable.
The Journal notes that the WWE Board of Directors is made up of WWE executives and even members of McMahon’s own family. They include his daughter, Stephanie McMahon, as well as Paul Levesque, her husband and former wrestler who goes by the name Triple H. McMahon holds the majority of the voting rights of the shareholders.
McMahon has been an integral part of WWE for decades, both behind the scenes and in the ring.
The CEO has helped build the company into a media outlet that currently has deals with Fox and NBCUniversal. McMahon also helped create many famous wrestlers such as The Rock, John Cena and Stone Cold Steve Austin who have grown bigger than WWE (WWE) itself.