WWE board investigates secret $3 million payment by CEO Vince McMahon, says report

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Vince McMahon attends a press conference at MetLife Stadium on February 16, 2012 in East Rutherford, New Jersey.

Michael N. Todaro | Getty Images

world Wrestling EntertainmentThe U.S. board is investigating a $3 million hush-money settlement that CEO Vince McMahon paid for an alleged affair with a woman, The Wall Street Journal reported on Wednesday, citing documents and people familiar with the matter.

The agreement is intended to prevent the woman, who worked as a paralegal for the company, from discussing her relationship with McMahon or making important statements about the chief executive, the Journal said.

A WWE spokesperson told the newspaper that the company was cooperating with the board’s investigation and that the relationship between McMahon and the woman was consensual.

McMahon, 76, is married to Linda McMahon, who served as the CEO of WWE and the Small Business Administration chief in the Trump administration.

WWE did not immediately respond to a request for comment from CNBC.

A source told the Journal that the board has retained Simpson Thatcher & Bartlett LLP, a New York-based law firm, to conduct the investigation. The firm did not immediately respond to a request for comment from CNBC.

McMahon’s attorney, Jerry McDevitt, was not immediately available for comment.

McDevitt told the Journal that the former employee had not made any harassment claims against McMahon. He also said that WWE did not give him any money, the newspaper said.

Read the full Wall Street Journal report Here,

This is a developing story. Check back for updates.

— CNBC’s Candice Choi contributed to this report.