The WWE board has officially opened up an inquiry on Vince McMahon and an alleged financial settlement in exchange for a former employee’s silence. McMahon made a $3 million payment in a separation agreement with a former employee due to an alleged affair between McMahon and the employee.
According to reports, the agreement prevents the former staffer from disclosing any information about her relationship with McMahon or making any negative comments about him. McMahon had hired her as a paralegal starting with a $100,000 salary but then gave her a 100% raise after their relationship became sexual. The WWE’s investigation, which has been open since April, also uncovered many other concerning details regarding McMahon and WWE Head of Talent Relations John Laurinaitis.
The investigation revealed years of nondisclosure agreements that relate to misconduct claims from former employees against both McMahon and Laurinaitis. According to emails, the employee who engaged in an alleged affair with McMahon was also involved with Laurinaitis, as McMahon gave the woman to him “like a toy.” Other NDAs involving other employees reportedly totaled millions of dollars in settlements.
McMahons’s attorney, Jerry McDevitt, said in a letter to the Wall Street Journal that the woman had not alleged any harassment by McMahon, and that WWE “did not pay any monies” to her “on her departure.” A WWE spokesman said that the company is fully cooperating with the investigation and that the relationship between the paralegal and McMahon was completely consensual.
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McMahon bought WWE from his father in 1982 when it was named the World Wrestling Federation and helped build the company into a massive entertainment conglomerate. The company has produced stars such as Hulk Hogan, The Rock and John Cena. McMahon’s wife, Linda, formerly served as WWE CEO, while his daughter Stephanie, serves as WWE’s Chief Brand Officer. Although WWE is a publicly-traded company, McMahon still holds the majority of the shareholders’ voting power.
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