WWE Is Back! Vince McMahon Returns to Board Following Hush Money Scandal
Vince McMahon, the owner and former CEO is back on the World Wrestling Entertainment Inc. (NYSE: WWE) board of directors, after stepping down from executive obligations last summer.
The disgraced third-generation wrestling promoter faced numerous investigations regarding secret payments to women linked to the company for keeping “allegations of sexual misconduct and infidelity” under wraps. WWE first uncovered the unrecorded expenses in June 2022, prompting the company to revise its financial statements for the prior three years, with McMahon personally repaying the hush money. When he abdicated his CEO and chairman post, McMahon was replaced by his daughter, Stephanie McMahon.
After some time away, though, it appears McMahon is ready to get back in the ring. A SEC filing published last Friday confirmed the former CEO returned to the company’s board of directors and taking on the role of executive chairman, simultaneously dethroning five existing board members, three of whom voluntarily left. The wrestling promoter justified his return with intentions of pursuing a potential sale, getting involved in WWE’s media rights deals, and maximizing shareholder value.
“These actions will enable unified decision making through the Issuer’s upcoming media rights negotiations and a parallel full review of the Issuer’s strategic alternatives, which the Reporting Person believes is the right course of action and in the best interests of the Issuer and the Issuer’s stockholders in the midst of the current dynamics in the media and entertainment industry,” read an excerpt from the press release.
Along with McMahon’s reinstatement, George Barrios and Michelle Wilson, two former WWE executives, also returned to the board. Coinciding with his return, the WWE pioneer also made adjustments to company bylaws, including a new requirement whereby McMahon needs to grant approval for all media deals or a company sale. “Any party that engages in strategic discussions with WWE will want to be assured that I, as controlling shareholder, am aligned with the decision-making process. In other words, we must unify the Company’s decision-making regarding these two interconnected initiatives to fully capitalize on this unique opportunity.”
WWE last traded at US$84.27 on the NYSE.
Information for this briefing was found via the SEC, WWE, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
