WWE’s majority shareholder, Vince McMahon, has signed a new employment agreement that includes a clause about his potential payout and life story rights in the event of a sale. The contract also covers McMahon’s compensation package, his return to day-to-day operations, and his future role within the company.
McMahon’s Potential Payout and Life Story Rights in the Event of a Sale
Under the new employment agreement, McMahon would receive a $6.8 million lump cash payment, a prorated payout of his incentive bonus for the year, and all unvested shares vest if WWE were to be sold. This would likely deliver a $4.3 million payout if a deal closed this year.
However, as WWE’s controlling shareholder, McMahon’s severance package is pocket change compared to what his equity would be worth in a sale. The agreement also guarantees McMahon the right to his own intellectual property (IP) and life story rights while giving WWE the non-exclusive right to use his IP.
McMahon would have the exclusive right to communicate, convey, commercialize, license or otherwise exploit his life story, including books, articles or essays, audio recordings, audiovisual works. The company waives any claims relating to confidentiality, nondisparagement, non-competition or other restrictive covenant or affirmative undertaking binding on McMahon.
McMahon’s New Employment Agreement and Compensation Package
McMahon’s new employment agreement will pay him as much as $7.6 million this year. It includes a base salary of $1.2 million, a cash bonus of $2.1 million and stock awards of $4.3 million.
McMahon is enrolled in WWE’s 401k with Fidelity Investments and gets use of the company jet for personal travel. If he leaves the company within two years of a change in control, McMahon will receive a multimillion-dollar payout.
However, McMahon will retain the future rights to his life story, name and variants, including the Mr. McMahon character he plays in WWE storylines.
Vince McMahon’s Return to Day-to-Day Operations
McMahon returned to WWE after a six-month scandal-induced retirement and has been positioned as a Board of Directors-level move. As the controlling shareholder, McMahon has never relinquished control over the company and has the voting power to dictate WWE business, which is how he forced his way back onto the Board in January.
McMahon has been focused on big picture projects like a potential sale of the business and the next round of media rights deals. Fans, wrestlers, and reporters have been looking for signs of McMahon’s involvement in day-to-day operations, especially the creative direction for WWE programming.
WWE CEO Nick Khan confirmed that Vince McMahon is the only person who runs WWE and that he only helps to run the company. The company announced that McMahon will serve a two-year term as Executive Chairman of the Board, retroactive to Jan. 9, 2023, and will be paid a $1.2 million annual salary with an opportunity to earn 175% in a target bonus and an annual stock grant worth millions.
The contract gives the company rights in perpetuity to McMahon’s writing, appearances, performances, and creative director work product during his tenure as executive chairman. However, it also allows for the possibility that he could perform on-camera or work on the creative side of the business again while giving the company full right to those works.
Conclusion
In conclusion, Vince McMahon’s new employment agreement covers his potential payout and life story rights in the event of a sale while also securing his compensation package and role within WWE. With his return to day-to-day operations, fans are curious about what direction he will lead WWE programming towards next. Only time will tell what the future holds for both Vince McMahon and WWE.
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