Less than a week after Vince McMahon appointed himself to the WWE board of directors, the company is undergoing a major leadership shake-up.
Stephanie McMahon, his daughter, who had been serving as co-CEO of the WWE alongside Nick Khan, has resigned. McMahon announced the decision on her social media pages Tuesday evening.
“With Nick’s leadership and Paul ‘Triple H’ Levesque as chief content officer, I am confident WWE is in the perfect place to continue to provide unparalleled creative content and drive maximum value for shareholders,” she wrote.
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The WWE confirmed that Khan is now the sole CEO of the company. In addition, Vince McMahon has been named executive chairman.
Khan and Stephanie McMahon were named co-CEOs last year after Vince McMahon retired following a board investigation into allegations that he had sexual relationships with employees at the company and subsequently paid the women millions of dollars as part of their severance packages.
Her husband, Levesque, was elevated to oversee all content.
However, last week Vince McMahon exercised his authority as the company’s controlling shareholder to fire three of the WWE’s board members and add himself and two former executives to the board. Two other WWE board members resigned following the move.
McMahon said that he felt he needed to return to pursue a review of strategic alternatives for the company — including a possible sale — ahead of media rights negotiations that were expected to begin this year.
However, analysts have been on the fence as to whether he would be a help, or a hindrance, to the process.
Vince McMahon founded the company decades ago, and led it alongside his wife Linda McMahon. Stephanie McMahon appeared regularly as a performer before taking on an executive role in recent years, including overseeing marketing, before being elevated to co-CEO.
In her statement, Stephanie McMahon said, “I look forward to cheering on WWE from the other side of the business, where I started when I was a little kid, as a pure fan.”
“I will always remain dedicated to WWE,” she added. “I truly love our company, our employees, our superstars, and our fans. And I am grateful to all of our partners.”
In letters to Vince McMahon sent last month, the WWE board (which Stephanie and Levesque sit on) said it unanimously believed that it would be a mistake for him to return to the company.
“This determination is based on a variety of factors, including non-public information the Board has become aware of and the risks to the Company and its shareholders of placing a greater spotlight on these issues,” the board wrote.
Wolfe analyst Peter Supino highlighted McMahon’s return as a potential boon, but also a risk, for the company.
“Given the TV ratings and stock outperformance since stepping down, we understand the board’s hesitation, but if the purpose is to pursue a sale while removing the uncertainty of Vince’s intention for bidders and shareholders, then we welcome the move,” Supino wrote last week, adding, “We also wonder whether Vince will insert himself in management, adding headline risk for a buyer.”
