WWE executive chairman Vince McMahon has a new employment agreement that will pay him as much as $7.6 million this year; additionally, he will receive a rich pay package should he leave the company if it’s sold. WWE (NYSE: WWE) detailed the executive’s new compensation agreement in a regulatory filing Friday morning.
McMahon will receive a base salary of $1.2 million, a target cash bonus of 175% of his base salary, or $2.1 million, along with stock awards of $4.3 million, provided the company meets performance targets. McMahon already owns controlling equity in WWE by virtue of owning nearly all of the supervoting class B shares. His 28.7 million total shareholdings in WWE are worth $2.6 billion, based on Thursday’s closing price of $90.60.
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In addition to the salary and equity payments, McMahon is enrolled in WWE’s 401k with Fidelity Investments— his 3% contribution will receive WWE’s 50% employee match, or another $18,000. He also gets use of the company jet for personal travel, billed back to him at an undisclosed rate, according to the filing. He also gets 20 vacation days and three personal days annually.
With McMahon having reinstated himself as executive chairman of the company this year to explore a potential sale, the agreement also details a multimillion-dollar payout for the billionaire if he leaves the company within two years of a change in control—i.e. a sale—of WWE. In that case, the executive will receive twice his base salary, twice his annual cash bonus and as much as another $2.1 million in annual bonus based on how much of his then-current employment year has passed. Along with that potential $8.7 million (or greater) pay out, any unvested equity awards will also immediately convert into shares.
While WWE is synonymous with McMahon—Vince bought the company in 1982 from his father and built it into the entertainment juggernaut it is today—the executive will walk away with the future rights to his life story, his “distinguishing characteristics” as well as his name and variants, including the Mr. McMahon character he plays in WWE storylines.
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