Missing in action?
If companies are required to disclose in an 8K when a top executive resigns, even if it’s for “personal reasons” as Wellpoint (WLP) did in this 8K two weeks ago (be sure to read yesterday’s WSJ story for the juicy details), what sort of disclosure is required when the company’s chairman appears to blow up as World Wrestling Federation (WWE) claims its Chairman, Vince McMahon, did on Monday night?
As my buddy Paul Kedrosky writes, this had to be one of the strangest press releases issued yesterday. I’d go a bit further and say it’s one of the strangest releases I’ve seen — ever — and I’ve certainly seen my share! It’s one thing when a company blows a quarter or the top executive blows up at pesky questioners on a conference call. But stepping into a waiting limousine and then appearing to implode? And then issuing a press release suggesting that everyone from Donald Trump to Bob Costas could be behind the plot (as opposed to an over-zealous PR team)?
Of course, as we footnoted back in April, Linda McMahon, who is routinely described as “the powerhouse behind the scenes” has been the CEO of the company since 2000, even if Vince is making $850K to Linda’s $500K.
RSS
June 13th, 2007 at 11:40 am
Guess we’ll see if they file an 8-K for change in principal officers or directors…
Someone at the SEC will spill their coffee when they read this press release.
June 15th, 2007 at 1:25 am
Michelle:
Your reader has a good point re: Vince.
If WWE lets this story roll on into next week management will be in violation of SEC regulatory disclosures, for public companies must file with the SEC to announce any material events that affect shareholders—within four business days of the occurrence of the event.
The death of Mr. McMahon, who beneficially owns approximately 66 percent of the Company’s outstanding equity, and controls about 94 percent of the voting stock, would trigger a Form 8-K filing.
And… What serious investors really want to know, however, is (i) was the limousine insured for an explosion? (ii) Who is responsible for paying for the cleanup of the destruction and mess caused by the explosion?
McMahon’s contract states that he is “eligible to receive reimbursement in an amount up to $50,000 in any calendar year for his expenses for cleaning services.â€
The explosion will likely be properly accounted for as a “reasonable business expense incurred by him [McMahon] in the course of the performance of his duties.†Ergo, WWE will pick up the blown-up limo expenses.
http://10qdetective.blogspot.com/2007/06/world-wrestling-entertainment-goodbye.html
Best Regards,
David J Phillips, Publisher
http://www.10qdetective.blogspot.com
June 15th, 2007 at 10:56 am
Actually, another footnoted reader brought this story to my attention.