Meanwhile, his daughter Stephanie McMahon will serve as interim CEO and interim chairwoman, WWE (WWE) said in a statement Friday. McMahon will not disappear from the company entirely. He will retain his role related to WWE creative content while the investigation continues and will appear as a character during wrestling matches. The enterprise tweeted Friday McMahon appears on the company’s Friday night wrestling show “Smackdown,” which airs on Fox. A special committee of the company’s board of directors has begun investigating McMahon. The Wall Street Journal reported Thursday that McMahon paid 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 former, unnamed employee “from discussing her relationship with or disparaging Mr. McMahon,” according to the Journal.
“I have pledged my full cooperation in the Special Committee’s investigation and will do everything possible to assist in the investigation,” McMahon said in the statement. “I have also pledged to accept the findings and findings of the investigation, whatever they may be.”
The investigation reportedly began in April and has “uncovered other, older non-disclosure agreements involving allegations by former female WWE employees of wrongdoing by Mr. McMahon,” the Journal reported. Further allegations of misconduct were reportedly made against John Laurinaitis, the company’s head of talent relations.
WWE said Friday it takes “all allegations of misconduct very seriously” and has engaged independent legal services 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.”
The company’s board of directors consists of executives who report to McMahon and even members of McMahon’s own family. They include Stephanie McMahon, as well as Paul Levesque, her husband and former wrestler, who goes by the stage name Triple H. Vince McMahon controls the majority of voting rights.
McMahon has been an integral part of WWE (WWE) for decades, both behind the scenes and in the ring.
The CEO helped grow the company into a media powerhouse, which 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 itself.
WWE shares are up more than 30% year-to-date, a blip in the current bear market.
— Frank Pallotta of CNN Business contributed to this report.