WWE’s latest quarterly filing with the SEC on Monday officially confirmed that the company’s board of directors’ investigation into former CEO and Chairman Vince McMahon is “largely complete.” The investigation began in April and was eventually announced via A The Wall Street Journal A report in June, which looked at non-disclosure agreements McMahon signed to former WWE employees in order to prevent allegations of sexual misconduct from coming to light. McMahon announced his retirement from all positions within WWE in late July, although the filing warns that his departure may have negative effects on the company. WWE has since promoted Stephanie McMahon and Nick Kahn as co-CEOs while Paul Levesque has taken over as the new Head of Creative and Head of Talent Relations.
Part of the filing reads – “On June 17, 2022, the Company and its Board of Directors announced the formation of a Special Committee of the independent members of our Board of Directors (the “Special Committee”) to investigate alleged misconduct by the Company’s former Chairman and CEO, Vincent K. McMahon. .The Special Committee’s investigation is largely complete.Mr. McMahon resigned from all positions he held in the Company on July 22, 2022, but remains a controlling shareholder.On July 25, 2022, based on the results of the Special Committee’s investigation, the Company announced that it had determined that some Payments that Mr. McMahon agreed to make between 2006 and 2022 (including payments made and payable in the future totaling $14.6 million) were not properly recognized as an expense in the company’s consolidated financial statements.The company subsequently identified two additional payments totaling US$5.0 million, unr. beamed by the alleged misconduct by Mr. McMahon that led to the Special Commission investigation, which Mr. McMahon carried out in 2007 and 2009 and was not appropriately recognized as an expense in the consolidated financial statements unit of the company. These combined unrecorded expenses total $19.6 million (“Unrecorded Expenses”). All principal payments for unrecorded expenses have been or will be paid by Mr. McMahon personally. The Company determined that, although the amount of unrecorded expenses was material in any individual period in which the unrecorded expenses arose, the total amount of unrecorded expenses would be material if recorded in full in the second quarter of 2022.
The statement later added, “Although we believe that no significant business has been lost to date, it is possible that a change in the perceptions of our business partners may have occurred as a result of the investigation. Additionally, as a result of the investigation, some operational changes occurred including but not limited to Limitation to personnel changes and may continue to occur in the future. Any or all of these effects, depending on the findings of the investigation, related matters and surrounding circumstances, could directly exacerbate the other risks described herein or have a material adverse effect indirectly on our operations and/or performance. financial”. You can read the entire file here.
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