WWE’s Vince McMahon has stepped back from his CEO and Chair roles amid misconduct allegations

WWE founder and CEO Vince McMahon has “voluntarily stepping back” from his roles as CEO and chairman of the time-honored entertainment company amid an “investigation into alleged misconduct” by him and John Laurinaitis, head of talent relations.

According to The Wall Street Journal, WWE is investigating allegations that suggest McMahon offered a $3 million settlement to a former female employee with whom he had an affair. “McMahon will retain his role and responsibilities related to WWE’s creative content during this period and remains committed to cooperating with the review underway,” the company said.

In the meantime, WWE has appointed Stephanie McMahon, Vince’s daughter, to the role of interim CEO and interim chairwoman. The move finds her returning to the company after taking a leave of absence last month to “focus on family.”

In a statement, Vince McMahon said, “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.”

Stephanie McMahon said in a statement, “I love this company and am committed to working with the Independent Directors to strengthen our culture and our company; it is extremely important to me that we have a safe and collaborative workplace. I have committed to doing everything in my power to help the Special Committee complete its work, including marshaling the cooperation of the entire company to assist in the completion of the investigation and to implement its findings.”

“WWE and its board of directors take all allegations of misconduct very seriously,” the company said in a statement. “The independent directors of the board engaged independent legal counsel to assist them with an independent review. In addition, the special committee and WWE will work with an independent third-party to conduct a comprehensive review of the company’s compliance program, HR function and overall culture.”

In The Wall Street Journal’s report, the outlet said that Vince McMahon arranged a separation agreement with the employee in January 2022 that included a staggered $3 million payment not to smear Vince’s name or the company itself. WWE board members learned about the deal through a series of anonymous emails from an individual claiming to be a friend of the former employee. Upon digging into the matter, the board discovered other agreements involving McMahon and Laurinaitis. When asked for comment, a WWE spokesperson told the Journal that McMahon’s relationship with the woman hired as a paralegal in 2019 was consensual and that Vince’s funds were used to pay the settlements, including those lobbied at Laurinaitis.

WWE is the most recognizable company in wrestling, though it’s been haunted by rumors, allegations, and poor business decisions for several years. The accusations against McMahon and Laurinaitis are the tip of an enormous iceberg, and it will be interesting to see how WWE recovers from an event such as this.