Vince McMahon has been ousted from his job as chief executive officer of World Wrestling Entertainment Inc. (NYSE: WWE). However, it is clear that he remains in power through control of the company\u2019s shares. There is nothing the board or shareholders can do about it.<\/p>\n
In July, McMahon left his job because of $20 million he spent that his board did not know about. About three-quarters of this went to settle claims of sexual harassment from four women. The activity extended for more than a decade.<\/p>\n
McMahon\u2019s daughter Stephanie is the board chair and co-CEO of WWE. It is one way for him to control the company. However, this is not his major leverage. An SEC filing related to McMahon\u2019s behavior reveals that, despite his departure, he \u201cremains a stockholder with a controlling interest.\u201d<\/p>\n
McMahon\u2019s power should not be underestimated. He controls the board of directors. As such, he controls executive pay and every major decision senior management makes. This means that he controls the sale of WWE and any M&A activity.<\/p>\n
McMahon can make decisions that are not in the best interests of the balance of the shareholders. Despite a strong performance this year, a misstep by McMahon cannot be reversed unless he decides to do so.<\/p>\n \t\t\t\t