Vince McMahon, for years the CEO of World Wrestling Entertainment Inc. (NYSE: WWE), was pushed out in July after allegations of sexual misconduct. The Wall Street Journal recently reported he faces additional accusations involving the same issue. For McMahon, none of this changes the fact that he controls WWE through a special class of shares. He is in charge whether or not he holds the CEO job.
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About his future, the report said, “The 77-year-old Mr. McMahon also has told people that he intends to make a comeback at WWE, according to the people familiar with his comments.” Can he come back? The decision may be his own, even if he and the WWE face ongoing suits over sexual harassment charges.

WWE has what are known as B shares. According to the WWE proxy, McMahon owns 92.2% of this class, which gives him voting control over the company. The 10-K reads: “Through his beneficial ownership of a majority of our Class B common stock, Mr. McMahon can exercise control over our affairs, and his interests may conflict with the holders of our Class A common stock.”

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These troubles should not worry those who have invested in the stock solely to make money. While the stock price of almost every large media company has sold off, WWE shares are up 49%. The overall market is off by about 15%.

In the most recently reported quarter, revenue rose to $305 million from $256 million in the period a year ago. Adjusted operating income before depreciation and amortization, which WWE uses to measure profits, rose from $79 million to $91 million. WWE has a market cap of $5.5 billion.

Not only does McMahon control WWE, but his alleged behavior also has not kept him from being a billionaire.

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