Vince McMahon, the charismatic billionaire owner of World Wrestling Entertainment (WWE), will step back from his role as CEO as the group probes allegations of so-called 'hush money' payments to a former employee.
The Wall Street Journal reported earlier this week that McMahon, who purchased his father's World Wrestling Federation business in 1982, changed its name to World Wrestling Entertainment and lead its listing on the Nasdaq in 1999, paid $3 million to a former group paralegal with whom he was having a consensual affair.
McMahon, 76, is also alleged to have engaged in inappropriate behavior with women staff at the company, as is WWE's head of talent relations John "Johnny Ace" Laurinaitis.
McMahon's daughter, Stephanie, will serve as interim CEO until the investigation is completed, the company said Friday. She will also act as chairwoman of the $4.8 billion company that is now listed on the New York Stock Exchange.
“I have pledged my complete cooperation to the investigation by the Special Committee, and I will do everything possible to support the investigation," McMahon said. "I have also pledged to accept the findings and outcome of the investigation, whatever they are."
WWE shares were marked 2.6% lower in early afternoon trading Friday following news of McMahon's changing role to change hands at $63.20 each, a move that would trim the stock's year-to-date gain to around 30%.
World Wrestling Entertainment generated a record $333.4 million in revenues over the three months ending in March, the group's fiscal first quarter, up 27% from the same period last year, while unveiling a multi-year content partnership with A&E, the network partly-owned by Walt Disney Co. (DIS).
The group reiterated its forecast for full-year operating profits of between $360 - $375 million in early May, a tally it said reflected "the continued ramp-up of live events, including large-scale international events, and increased monetization of content" that would be partially offset by "increased production, content-related, and other expenses."
