Update: Vince McMahon cannot be fired, but he did step down as WWE CEO.
Original: Vince McMahon recently became embroiled in a major scandal after it was revealed that he paid hush money to a WWE paralegal to keep an affair quiet. The news has hit mainstream business media outlets and has been impossible to escape. Many who follow WWE have been wondering if the Board of Directors would take action to try and fire the CEO.
The way WWE’s stock is set up separates it into different classes. The shares owned by Vince McMahon give him significantly more voting power than the rest of the board. If Vince is going to leave WWE, it will be a decision he makes personally.
On the latest Wrestling Observer Radio, Dave Meltzer discussed the situation. Vince McMahon owns a vast majority of voting power in WWE. The board would be unable to vote him out even if they wanted to.
“Another aspect of this is the board has power, but Vince… Even though Vince does not own a majority of the stock, Vince owns, the way that the stock is set up, Vince owns a huge majority of the voting power, so it’s not like Vince can be voted out.
He would have to resign or there would have to be outside pressure that would make Vince quit, which is one of the reasons why, like I said, he’s going like, ‘It’s just business as usual.'”
There could be a huge amount of outside pressure that may force Vince McMahon to resign. He could also just completely ignore the scandal and there is not much the board could do. This could turn into a very interesting game of corporate chess in the coming days.
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Transcription by Thirsty for News