Vince McMahon Signs New Two-Year “McMahon Employee Agreement” with WWE

In a recent filing with the SEC, WWE announced that Vince McMahon recently signed a new “McMahon Employee Agreement” contract with the company.

It was stated that this new deal is for two years in length and allows McMahon to continue with his current duties as the company’s Executive Chairman. This new deal was also stated to contain terms that allows his deal and seat on WWE’s Board of Directors to be automatically renewed for additional one-year terms.

This new deal was also stated to contain terms confirming that McMahon owns the full rights to his legal name, all variants such as Mr. McMahon, and his likeness for both wrestling and any project involving him, such as “personal experiences, biography and life story, and all other rights of publicity and persona relating to McMahon (collectively, the “McMahon Intellectual Property”) in perpetuity.” It was also stated that McMahon has granted WWE the non-exclusive rights to use his IP.

In terms of monetary amounts, it was stated that McMahon will now earn $1.2 million per year with a target bonus opportunity of 175% and an annual stock grant value of $4.3 million. It was also stated that if WWE were to terminate his position without cause or if McMahon terminates his deal for “good reason,” he will be eligible to receive a severance payment. This severance pay was stated to cover:

(1) a lump sum cash payment equal to two times Mr. McMahon’s then-current base salary, (2) a lump sum cash payment equal to two times Mr. McMahon’s annual bonus based on target performance, (3) a prorated portion of the annual bonus based on target performance for the year in which the termination occurs, (4) full accelerated vesting of Mr. McMahon’s unvested equity awards (with the payout of performance-based awards determined based on target-level achievement) and (5) health and welfare continuation for the twenty-four month period following the termination.

WWE’s filing also stated that WWE CEO Nick Khan has been given a pay raise with his annual base salary increasing from $1.35 million to now $1.5 million per year, his annual target bonus opportunity increased from 160% to now 175%, and his annual stock grants increased from $3.75 million to now $5,375 million, which are all subject to performance incentives.