WWE Inc. said on Friday it launched an investigation into alleged misconduct by its longtime CEO Vince McMahon and appointed Stephanie McMahon as the company's interim head.

The Wall Street Journal on Wednesday reported the company's board was investigating a $3 million settlement that McMahon agreed to pay to a departing employee with whom he allegedly had an affair, citing documents and people familiar with the inquiry.

The board has engaged an independent legal counsel to assist them with an independent review, the company said on Friday.

Vince McMahon's wife is Linda Marie McMahon, who, under the administration of former President Donald Trump, headed the Small Business Administration from 2017 to 2019. She and her husband founded WWE.