This case introduces students to an interesting and fun example of a proxy statement issued by World Wrestling Entertainment, Inc. (WWE). WWE is effectively run by the McMahon family, which provides opportunities for students to recognize conflicts of interest in related party transactions between WWE and family members, as well as how the dual class share structure can facilitate these transactions. Further, executive compensation is driven by accounting measures, allowing students to recognize the incentives managers face and the governance structures of firms that may impair a manager’s flexibility in making self-interested financial reporting decisions. The class can also provide an opportunity to cover accounting for stock compensation.
