WWE Pays Dividends to Stock Holders After Laying Off Employees

WWE has plans to pay dividends to stockholders after laying off employees yesterday. Dividends for investors could have paid all of the salaries of the people who found themselves let go yesterday until 2021 according to Bleeding Cool. These details come courtesy of an SEC filling amid the shakeup that saw 38 wrestlers and other workers released. The company was trying to cut costs amid the coronavirus pandemic. It is well-documented that WWE is sitting on $500 million in reserve funds. Some saw themselves furloughed, but most of the wrestlers were completely relieved of duty. Wrestling Observer’s Dave Meltzer speculated that the total monthly cost WWE stands to save totals around $703,000.

In essence, the WWE paid out $.12 cents a share in dividend to the owners of about 78 million shares. The shareholders netted a grand total of $9.4 million due to the move. Vince McMahon would be entitled to about $3.5 million himself based on the last known share total. All of that dosh that went to the boss could have funded the staff who were let go for about five months. Even more glaringly, the total amount could have kept them a part of the company until April of next year.

So, the company opted to pay the shareholders and McMahon rather than the talent and other workers. There might be logical reasons for the WWE heading in this direction, but fans have been critical of the move. The Board of Directors could have decided to allow an exception for the affected workers, but that’s not the current situation. Instead, there are uncertain waters ahead, and the performers let go will have to find somewhere else to generate that income.

Class A and Class B stock hovers at $.12 per share for all shareholders according to a press release. WWE’s release reads, “Board of Directors today declared the Company’s regular quarterly dividend of $0.12 per share for all Class A and B shares of common stock.” Class B stock is reserved for the McMahon family, it holds ten times the standard voting power of Class A stocks. If one of the McMahon members decides to sell Class B stock, it is instantly converted to the Class A variant. The company’s latest filing on their sit lists the total number of Class A stock at 43,739,412. Meanwhile, Class B sits at 34,303,438 shares outstanding.

What is your reaction to this news? Were any of your favorite performers affected by these moves this week? Let us know in the comments!