WWE’s landscape has shifted dramatically since the company merged with UFC under the TKO Group Holdings banner in September 2023. While the business side of the industry is booming, with record-breaking revenues and global expansion, the changes behind the scenes have left many employees questioning how the new structure affects their livelihoods. Now, one of WWE’s most outspoken stars, CM Punk, is pulling back the curtain on how paychecks have changed since the TKO merger — and according to him, the new system is nothing like the old.
A New Era of Pay Structure
CM Punk, who returned to WWE in 2023 after a lengthy hiatus, has always been candid about his experiences in the wrestling business. In a recent interview, Punk detailed how the merger with TKO has fundamentally altered the way talent is compensated. “The old WWE pay structure was pretty straightforward,” Punk explained. “You had your base salary, bonuses for big events, and sometimes incentives for merch sales or PPV buys. Now, everything is tied to TKO’s broader corporate model, and it’s a lot more complex.”
Under the new system, wrestlers’ pay is no longer just about their individual contracts. Instead, compensation is increasingly influenced by TKO’s overall financial performance, stock options, and long-term incentive plans. “It’s not just about what you do in the ring anymore,” Punk said. “Now, your paycheck is affected by how TKO’s stock is doing, how much money the company makes from streaming deals, and even how well UFC events perform.”
The End of Old Incentives
One of the most significant changes since the merger is the elimination of several long-standing incentive programs. According to a WWE insider, the company’s previous stock purchase plan, which allowed employees to buy WWE stock at a 15% discount, has been discontinued. “Due to TKO’s corporate structure, we are unable to launch a new Employee Stock Purchase Plan that offers the same type of individual tax benefits that were previously offered by the WWE plan,” the insider said. “However, TKO shares continue to be granted to eligible employees as part of our Long-Term Incentive Plan.”
Additionally, the “WWE Superstar” program, a peer initiative where staff could reward one another through a points-based system that could be transferred for cash bonuses, gift cards, or experiences, has also been removed. “It was a small thing, but it made a big difference in morale,” the insider added. “Now, those kinds of rewards are gone, and it feels like the company is more focused on the bottom line than on the people who make it all happen.”
The Impact on Wrestlers
For wrestlers, the changes have been both positive and negative. On one hand, the new system offers the potential for higher earnings through stock options and long-term incentives. “If TKO does well, we all benefit,” Punk said. “But it’s also a lot more uncertain. Your paycheck isn’t just about your performance anymore; it’s about the company’s overall success.”
On the other hand, many wrestlers are seeing their base salaries and bonuses remain stagnant, despite the company’s record-breaking financial performance. “We’re working harder than ever, but our pay increases are limited to a three percent cost of living raise,” Punk said. “That hardly keeps pace with the rising costs of living in Connecticut and New York, where WWE’s headquarters is based.”
The Disconnect Between Corporate and Talent
The disconnect between corporate messaging and the daily experiences of WWE employees has become increasingly apparent since the merger. While WWE management has emphasized the value of its workforce at town hall meetings, many staff members feel increasingly undervalued. “They talk about how important we are to the company’s success, but then they cut back on benefits and limit pay increases,” Punk said. “It’s hard to feel appreciated when you’re not seeing the rewards of your hard work.”
This sentiment is echoed by other WWE employees. “We’re expected to take on even more work without additional compensation and with dwindling benefits,” a source close to Cody Rhodes revealed. “It’s compounded by the increase in workloads around WrestleMania season and more UFC-related tasks since the merge.”
The Future of WWE Pay
As TKO continues to expand, acquiring Endeavor assets like Professional Bull Riders (PBR), On Location, and IMG, and discussing the possibility of entering professional boxing, the pressure on WWE staff is likely to increase. “We’re going to be expected to do more, but it’s unclear if we’ll be compensated fairly for it,” Punk said.
Despite the challenges, Punk remains optimistic about the future. “The new system has its flaws, but it also has the potential to be more rewarding in the long run,” he said. “It’s just going to take some time to figure out how to make it work for everyone.”
Conclusion
The TKO merger has brought significant changes to WWE’s pay structure, with both opportunities and challenges for talent. While the new system offers the potential for higher earnings through stock options and long-term incentives, it also comes with increased uncertainty and limited pay increases. As WWE continues to grow and expand, the company will need to find a balance between corporate profitability and fair compensation for its employees. For now, CM Punk’s insights provide a valuable glimpse into the realities of life in the new era of WWE.