Vince McMahon Steps Down; Stephanie McMahon Named Interim WWE Chairwoman And CEO

In a shocking development, Vince McMahon has temporarily stepped down as WWE Chairman and CEO in wake of an internal investigation of a $3 million payment from Vince McMahon to an ex-employee. Stephanie McMahon—who recently took a leave of absence—has been named interim WWE Chairwoman and CEO in his place.

“WWE (NYSE: WWE) and the Board of Directors today announced that a Special Committee of the Board is conducting an investigation into alleged misconduct by its Chairman and CEO Vincent McMahon and John Laurinaitis, head of talent relations, and that, effective immediately, McMahon has voluntarily stepped back from his responsibilities as CEO and Chairman of the Board until the conclusion of the investigation,” read a statement from WWE.

“McMahon will retain his role and responsibilities related to WWE’s creative content during this period and remains committed to cooperating with the review underway.”

“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,” said Mr. McMahon.

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“Until the conclusion of the investigation into recent allegations, I am honored to assume the role of interim Chairwoman & CEO. I love WWE and all it continues to do to entertain billions around the world,” said Stephanie McMahon on Twitter in her first comments since assuming WWE’s top executive role just as abruptly as she left the company in May.

Vince McMahon will reportedly address his allegations with talent Friday ahead of WWE SmackDown, where he will reportedly appear in-character on the program.

To make matters worse, WWE directors and officers are currently under investigation for a fiduciary duties breach. According to a report by Business Wire Scotty+Scott Attorney at Law, the firm “is investigating whether certain directors and officers of World Wrestling Entertainment, Inc. breached their fiduciary duties to WWE and its shareholders.”

“The report goes on to note that The law firm is investigating whether members of WWE’s board and senior management failed to manage WWE in an acceptable manner, in breach of their fiduciary duties to WWE, and whether WWE and its shareholders have suffered damages as a result,” noted the story.

Bad continues to go to worse during a week where Vince McMahon’s iron-fist rule of WWE has violently crumbled, at least for the time being. The dynamic of Stephanie McMahon being installed in Vince’s absence is an especially shocking turn of events given Stephanie’s departure and WWE’s subsequent burial of her to the press on her way out. With Stephanie McMahon in charge, WWE remains a family business, but it’s fair to question whether the McMahon dynasty is in jeopardy, especially if Vince McMahon’s ousting is made permanent.

Despite WWE’s achieving first billion-dollar year amid unprecedented financial success, creative woes and behind-the-scenes turmoil have overshadowed what should be smooth, Stamford stroll down easy street.