World Wrestling Entertainment CEO Vince McMahon is stepping down from his role while the company board investigates allegations of a secret payoff intended to conceal misconduct. WWE stock fell 3.6% during the day and closed at $62.54.
McMahon, the face of WWE, reportedly paid $3 million to a departing employee with whom he allegedly had an affair, according to the Wall Street Journal. The board appointed his daughter and former Chief Brand Officer, Stephanie McMahon, to serve as interim CEO and chairwoman during the ongoing investigation.
"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 the announcement.
WWE Stock: Finding Support In Third Weekly Pullback
McMahon allegedly made the hush-money payment when the former employee departed in January 2022. Since the investigation began in April, the board has uncovered multiple, older nondisclosure agreements with former WWE employees that involved claims against McMahon and John Laurinaitis, head of talent relations. The board's outside council is still collecting information on other possible nondisclosure agreements. But the payments are expected to total millions of dollars, WSJ reports. McMahon's lawyer denied claims of harassment and told the WSJ that "WWE did not pay any moneys" to the former employee "on her departure."
The situation marks an unexpected turn for Stephanie McMahon's role in the company. It's been widely assumed that the torch would eventually pass to her, given her roles as CBO and part-time talent for WWE. However, on May 19 she Tweeted she'd be taking a leave of absence from a majority of her responsibilities to focus on her family.
Friday's decline was the second big drop for WWE stock, which is now trading down 1.5% for the week, and headed for a third straight weekly decline. The IBD Leaderboard stock is now below short-term support, but holding above its 50-day moving average. IT is trading below its flat base entry and an alternate handle entry of $68.82.
