Vince McMahon, the former CEO and long-time face of WWE, has reached a settlement with the Securities and Exchange Commission (SEC) following an investigation into undisclosed hush money payments. McMahon agreed to pay a $400,000 civil penalty and reimburse WWE $1.33 million after failing to report settlements tied to allegations against him. The SEC found these actions violated the Securities Exchange Act, leading to material misstatements in WWE’s financial reports.
The payments stem from settlements McMahon made with two former workers in 2019 and 2022:
- One involved a $3 million payment to a former employee in exchange for non-disclosure of their relationship with McMahon and the release of potential claims against him and WWE.
- The second was an agreement with a former independent contractor that also involved non-disclosure of allegations and claims.
The SEC noted that McMahon bypassed WWE’s internal accounting controls, leading to the company overstating its net income by 8% in 2018 and 1.7% in 2021. These omissions resulted in WWE filing inaccurate financial statements, ultimately drawing regulatory scrutiny.
McMahon’s Response Downplays the Findings
Following the SEC’s announcement, McMahon addressed the situation in a post on X (formerly Twitter), characterizing the investigation’s findings as minimal. He wrote:
“The case is closed. Today ends nearly three years of investigation by different governmental agencies. There has been a great deal of speculation about what exactly the government was investigating and what the outcome would be. As today’s resolution shows, much of that speculation was misguided and misleading. In the end, there was never anything more to this than minor accounting errors with regard to some personal payments that I made several years ago while I was CEO of WWE. I’m thrilled that I can now put all this behind me.”
McMahon’s statement seeks to downplay the gravity of the SEC’s findings, referring to them as “minor accounting errors,” despite the financial discrepancies and failure to notify WWE’s board and auditors of the settlements.
Fallout and Reflection
The settlement marks another chapter in a tumultuous year for McMahon, who stepped down as CEO in early 2023, ending his decades-long tenure as the architect of WWE’s rise to global prominence. His departure came amid a swirl of controversy surrounding these payments, as well as additional allegations that surfaced during investigations.
While McMahon’s statement suggests he’s eager to move on, the SEC’s findings highlight significant lapses in corporate governance under his leadership. For WWE, the resolution of the case could allow the company to focus on its future as it continues its creative and business evolution under the leadership of Nick Khan, Triple H (Paul Levesque), and other executives.
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