The details of Vince McMahon’s new employee contract were made public following WWE’s recent SEC filing. The contract is retroactive to when McMahon returned to the company back in January.
McMahon’s base salary is $1.2 million annually, and he is eligible for an incentive bonus and stock equity consideration. His annual compensation package is estimated at $7.6 million.
Vince’s employment contract also includes a clause about the Executive Chairman’s potential payout in the event of a sale of WWE. McMahon would earn $6.8 million in cash, alongside a pro-rata payout of his incentive bonus for the year (around $2.1 million). McMahon will also have all unvested shares vest which happens to be a potential $4.3 million payout if the sale is executed, meaning McMahon could earn around $11 million in the event of a WWE sale.
According to The Hollywood Reporter, the contract also guarantees McMahon “the exclusive right to communicate, convey, commercialize, license, or otherwise exploit his life story, including any books, articles, essays, audio recordings, and other works.”
You can check out the entire contract below:
This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of this 29th day of March 2023 and effective as of January 9, 2023 (the “Effective Date”), by and between World Wrestling Entertainment, Inc. (“WWE” or the “Company”) and Vincent K. McMahon (“McMahon”).
WHEREAS, the parties hereto desire to provide for the terms of McMahon’s employment with WWE on an at-will basis in the capacity of Executive Chairman of the Board of Directors of WWE (the “Board”) as set forth in this Agreement; and
WHEREAS, by signing below, McMahon accepts and agrees to the terms and conditions set out in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1. Term/At-Will Employment.
The parties agree that the term of this Agreement, and McMahon’s employment, is intended to be two (2) years from McMahon’s start date of January 9, 2023 (the “Term”). The Term shall be extended automatically for an additional year as of the second anniversary of the Effective Date and as of each subsequent annual anniversary of the Effective Date (each such anniversary is referred to herein as an “Anniversary Date”), unless at least one hundred eighty (180) days prior to any such Anniversary Date either party shall have given notice to the other party that the Term shall not be so extended. Irrespective of the intended Term, including any renewal, McMahon’s employment shall, at all times, be on an at-will basis, so that either WWE or McMahon may terminate his employment, and this Agreement, with or without cause or reason, at any time; however, if McMahon intends to terminate his employment, he shall provide WWE with at least 60 days advance written notice. However, early termination of this Agreement shall be subject to the provisions below concerning post-termination payments to McMahon and/or reimbursements due WWE.
SECTION 2. Position and Duties.
(a) McMahon agrees to render such services to WWE on a full-time basis as are consistent with the position of Executive Chairman of the Board pursuant to the terms and conditions hereinafter set forth. McMahon shall, at all times, faithfully, industriously and to the best of his ability, experience and talent, perform the duties associated with this position, and he shall devote all of his working time and efforts to the performance of such duties. McMahon shall, at all times, also be subject to and comply with the policies and procedures generally applicable to WWE’s senior executives to the extent the same are not inconsistent with any term of this Agreement.
(b) McMahon shall report directly to, and be subject to the direction of the Board. McMahon’s base of work shall be in WWE’s Stamford, Connecticut headquarters; however, he shall also render services at such other places within or outside the United States as WWE may direct from time to time and as may be reasonably necessary to effectively fulfill his duties and responsibilities.
SECTION 3. Compensation & Benefits.
(a) Base Salary: Effective as of the Effective Date, McMahon’s base salary shall be One Million Two Hundred Thousand dollars ($1,200,000) per annum, less applicable taxes and withholdings (the “Base Salary”), payable on a bi-weekly basis in accordance with WWE’s standard payroll practices. Merit adjustments in Base Salary shall be within the sole discretion of WWE and determined and paid out also in accordance with WWE’s standard payroll practices.
(b) Incentive Bonus: McMahon is also eligible to participate in the WWE Discretionary Bonus Plan. The funding of the plan is based upon WWE’s achievement of financial and/or strategic performance measures, as determined by WWE in its discretion. The bonus pool funding can increase, decrease or be forfeited based on the level of achievement of WWE’s and/or McMahon’s personal performance measures. Effective for the Company’s 2023 fiscal year, McMahon’s annual Incentive Bonus will have a target of 175% of his current salary. The fact and amount of McMahon’s individual award will be determined based upon those factors indicated above, and again, at all times within WWE’s discretion. As with any other benefit programs, the fact and/or terms of any bonus eligibility can be modified or deleted at any time within WWE’s sole discretion. The bonus for any calendar year will be paid by March 15th of the subsequent calendar year. Except as otherwise provided under Section 4 below, upon a termination of employment prior to the end of the Term, McMahon shall not be paid any bonus amounts following such termination.
(c) WWE Equity.
(i) McMahon will also be considered for eligibility in all future stock programs that are offered to other key executives in WWE, including the Performance/Restricted Stock Unit (PSU/RSU) program, at all times subject to WWE’s Compensation and Human Capital Committee’s discretion. Further, all other terms and conditions of McMahon’s eligibility for equity shall be governed by WWE’s Omnibus Incentive Plan. Effective as of calendar year 2023, McMahon’s equity grant shall have an annual target grant date value of $4,300,000.
(ii) Except as otherwise provided in the applicable award agreement and Section 4 herein, if McMahon voluntarily terminates his employment with WWE for any reason, or his employment with WWE is terminated by WWE for any reason, then any and all unearned or unvested WWE equity as set forth above shall be forfeited as of the last day of employment
(d) Other Benefits: McMahon will be eligible for full company benefits on the first day of the month coincident or following his date of hire. WWE benefits include (but are not limited to): medical, dental, life and disability. McMahon will be automatically enrolled in WWE’s 401k plan at 3%. Should McMahon elect to opt out of the 401k auto-enrollment, please call Fidelity at 1-800-835-5097, after receipt of their confirmation letter. Subject to statutory limits, WWE currently matches to the 401k fifty percent (50%) of contributions up to six percent (6%) of salary. This match is subject to a one-year vesting and may be changed by WWE at any time within WWE’s sole discretion. As with all other employee benefits, these benefits are subject to change or deletion at any time within WWE’s discretion and without any particular advance notice. In addition, when the Company’s aircraft is not in use for business purposes, the aircraft may be used for the personal travel of McMahon and members of his immediate family and their invited guests. For any personal use of the aircraft in accordance with this Section 3(d), the management company for the aircraft shall bill McMahon directly at rates applicable to the Company’s business use of such aircraft and which cover all incremental cost(s) that otherwise would result to the Company from McMahon’s personal use. Duplicate copies of such bills shall be provided to the Company.
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