McMahon’s Potential Multimillion-Dollar Payout and Life Story Rights if WWE is Sold
Vince McMahon, the majority shareholder and chairman of WWE, has signed a new employment agreement with the company that includes a clause about his potential payout and life story rights in the event of a sale. McMahon’s new contract runs for two years, with the right to be extended in one-year increments after that.
The agreement guarantees McMahon (and his successors) the right to his own intellectual property and life story, while he gives the company the right to use his IP on a non-exclusive basis. If WWE is sold, McMahon would receive at least $11 million in compensation, with additional compensation likely depending on timing and share price. This is pocket change compared to what his equity would be worth in a sale, which is estimated at around $2.6 billion.
According to an SEC filing, McMahon can exploit his life story in any form, including a book or documentary. He would have wide leeway to tell his story without fear of a lawsuit from WWE, leaving open the possibility that he could perform on-camera or work on the creative side of the business again.
Vince McMahon’s New Employment Agreement and Compensation Package
Under Vince’s new employment agreement, he will be paid as much as $7.6 million this year. This includes a base salary of $1.2 million, a target cash bonus of 175% of his base salary, equating to $2.1 million, along with stock awards of $4.3 million.
McMahon already owns controlling equity in WWE with 28.7 million total shareholdings, worth an estimated $2.6 billion. He is also enrolled in WWE’s 401k with Fidelity Investments and gets use of the company jet for personal travel, 20 vacation days, and three personal days annually.
Moreover, the agreement also details a multimillion-dollar payout for McMahon if he leaves the company within two years of a change in control, i.e., a sale, of WWE. This payout guarantees financial security to McMahon and his successors.
Vince McMahon Retains Exclusive Rights to His Life Story
The news of Vince McMahon signing a new contract gained prominence just as reports surfaced that WWE is actively looking to sell the company. Given this context, McMahon’s contract gives him exclusive rights to his life story and his “distinguishing characteristics” as well as his name and variants.
This move makes sense because McMahon had stepped down as CEO amid sexual misconduct allegations, which engulfed him and the company in controversy. His daughter Stephanie took over as co-CEO while Nick Khan became the sole CEO recently.
Vince McMahon’s Hope to Sell WWE for $9 Billion
McMahon returned as chairman of the board to assist with potential sale of the company. Recent reports suggest that he is hoping to sell WWE for a whopping $9 billion. In light of this, McMahon’s new contract is an added incentive to facilitate the sale. It ensures financial security to him and his successors while giving them complete creative freedom over their intellectual property.
In conclusion, Vince McMahon has signed a new employment agreement with WWE that includes provisions about his potential payout and life story rights in case of a possible sale of the company. While constituting various financial incentives, the agreement would also ensure creative freedom for McMahon and his successors. The clause pertaining to life story rights is particularly noteworthy, given the controversies surrounding the former CEO regarding sexual misconduct allegations.
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