McMahon is undergoing a misconduct investigation for allegedly paying $3 million to a female employee so that she could keep an affair they had a secret.
The 76-year-old faced the allegations on June 15 during an investigation by the Wall Street Journal. The publication came across documents that revealed details about the affair.
His role will now be taken by his daughter, Stephanie McMahon.
According to WWE, McMahon is "cooperating" with the review being conducted even though he has stepped down from his position as the CEO. Although he is no longer at the helm, he will retain his role at the company concerning creative content.
According to the Wall Street Journal, the payment to the female employee was meant to keep her from talking about her affair with McMahon.
Reports say that the settlement was made in January of 2022. The woman had been brought on board as a paralegal in 2019 and worked for a salary of $100,000.
McMahon allegedly doubled her salary after their affair started. The relationship, according to WWE, was consensual.
According to the Wall Street Journal, this might not be the only non-disclosure agreement McMahon has had to get into.
He was married to his wife Linda in 1966, and the two have two children, Shane and Stephanie.
According to Bloomberg, McMahon is hardly the only person linked to misconduct as a WWE employee. Similar payments were found to have been made concerning John Laurinaitis, a former wrestler who worked for the company.
McMahon has been instrumental in WWE's success and helped turn it into a publicly-traded company worth millions of dollars.
At the beginning of 2022, he had his first sit-down interview in many years with The Pat McAfee Show. He briefly talked about the person who would be taking over after he left.
During the interview, he talked about building something and wanting it to grow and prosper, whether or not a family member was involved.
He said it was important to look at family members and employees and do what was right for the business.