Vince McMahon, the majority shareholder of World Wrestling Entertainment (WWE), has signed a new employment agreement that includes a clause about his potential payout in the event of a sale of the company. The clause details that McMahon would receive a $6.8 million lump cash payment and a prorata payout of his incentive bonus for the year, along with all unvested shares vesting. This figure appears to be lower than what might be expected from someone who owns controlling equity in WWE and holds 28.7 million total shareholdings worth $2.6 billion.
McMahon’s Payout If WWE Is Sold
There is speculation that WWE may get sold this year, which could result in additional compensation for McMahon if his payout is at least $11 million, with extra earnings depending on timing and share price. However, his severance package seems like pocket change in comparison to what his equity would be worth in a sale.
McMahon’s New Employment Agreement
McMahon’s new employment agreement will pay him up to $7.6 million this year, comprising of a base salary of $1.2 million, a target cash bonus of 175% of his base salary ($2.1 million) and stock awards of $4.3 million provided the company meets performance targets. In addition to this, he also has control over his life story rights and intellectual property, earning him the exclusive right to license or explore them without fear of lawsuit from WWE.
McMahon’s Role in WWE
McMahon has returned to WWE after retiring for six months due to controversy. His return was positioned as a board-level move, but he has never really relinquished control over the company as he holds voting power to dictate business decisions.
However, many fans and reporters have been looking for signs that McMahon is once again becoming more involved in day-to-day operations of the WWE. In a recent announcement, CEO Nick Khan acknowledged that McMahon is the only person who runs WWE, implying that he has a significant role in day-to-day operations alongside big-picture projects like media rights deals and potential business sales.
McMahon’s Control Over His Life Story and Personal Brand
As per the clauses mentioned in his new employment agreement, McMahon has negotiated a deal whereby he retains control over his life story and personal brand, which includes the “Mr. McMahon” character he portrays on-screen. This gives WWE the non-exclusive right to use his McMahon intellectual property while allowing him the freedom to explore outside opportunities without legal issues from wrestling entertainment.
Overall, it seems that Vince McMahon’s new employment agreement with WWE entitles him to a generous package if the company gets sold. However, it’s important to note that this package may not accurately reflect the value of his equity or voting power as majority shareholder of WWE. He has also secured control over his life story and personal brand, giving him greater autonomy outside of the WWE universe.
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