Former WWE CEO Vince McMahon Settles Charges with SEC for Undisclosed Agreements
The Securities and Exchange Commission (SEC) has settled charges against former WWE CEO Vince McMahon for failing to disclose two settlement agreements worth $10.5 million to the company's board and others. These agreements were made with two women in exchange for their silence regarding potential claims against McMahon and WWE.
McMahon resigned from WWE's parent company in January 2024 after a former employee filed a federal lawsuit accusing him and another former executive of serious sexual misconduct. He stepped down from his position as executive chairman of the board of directors at WWE's parent company, TKO Group Holdings, but continued to deny wrongdoing.
The SEC alleges that one agreement was signed in 2019 and the other in 2022. One agreement required McMahon to pay a former employee $3 million in exchange for her silence regarding their relationship and her release of potential claims against WWE and McMahon. The other agreement obligated McMahon to pay a former WWE independent contractor $7.5 million in exchange for her silence regarding her allegations against McMahon and her release of potential claims against WWE and McMahon.
By not disclosing these agreements to WWE's board, legal department, accountants, financial reporting personnel, or auditor, McMahon circumvented the company's system of internal accounting controls and caused material misstatements in the company's 2018 and 2021 financial statements. The SEC found that because the payments required by the agreements were not recorded, WWE overstated its 2018 net income by approximately 8% and its 2021 net income by about 1.7%.
Once WWE learned of the settlement agreements, it issued a restatement of its financial statements in August 2022.
"Company executives cannot enter into material agreements on behalf of the company they serve and withhold that information from the company's control functions and auditor," said Thomas P. Smith Jr., associate regional director in the New York Regional Office.
McMahon, without admitting or denying the SEC's findings, agreed to cease-and-desist from violating certain provisions, pay a $400,000 civil penalty, and reimburse WWE approximately $1.3 million.
13 Comments
Rotfront
This is a victory for justice. Vince McMahon may have gotten away with it for years, but he can't hide anymore.
Matzomaster
I hope this is a wake-up call for WWE. They need to take a strong stance against this kind of behavior.
Karamba
This is a sad day for WWE and for the fans. We deserve better than this.
Matzomaster
This is just another example of the toxic culture in professional wrestling. It's time for a change.
Karamba
I hope this is the beginning of the end for Vince McMahon's reign of terror.
Africa
This settlement is an insult to justice. McMahon should be facing criminal charges, not just a slap on the wrist.
Answer
I'm standing with WWE and the victims of Vince McMahon's abuse. We deserve better.
The Truth
I'm glad that Vince McMahon is finally being held accountable for his actions. He deserves everything he's getting.
Answer
This is a reminder that no one is above the law, not even a billionaire like Vince McMahon.
The Truth
I'm hopeful that this is the beginning of a new era for WWE. One that is free of abuse and corruption.
Answer
I'm glad that Vince McMahon is no longer in charge of WWE. It's time for a new era.
The Truth
This is a reminder that we all have a voice and that we can make a difference.
Mariposa
Disgusting! How can Vince McMahon get away with this? He used his power to silence women and lied about it. He should be banned from WWE forever!