WWE Executive Chairman Vince McMahon has signed a new employment agreement with WWE according to the latest 8-K Form filed with the United States Securities and Exchange Commission.
Under his new deal, he will continue to serve as Executive Chairman for a term of two years from his start date of January 9, 2023, subject to automatic extension for additional one-year terms thereafter unless either the Company or Mr. McMahon provides at least 180 days’ notice of non-renewal.
Mr. McMahon will receive an annual base salary of $1.2 million, an annual target bonus opportunity of 175% of his base salary, and an annual equity grant date target value set at $4.3 million, subject to performance metrics and vesting periods.
In the event the WWE fires him without “cause” or he terminates his employment for “good reason,” Mr. McMahon will be eligible to receive as severance base salary continuation through the end of the term, a prorated portion of the annual bonus based on target performance for the year in which the termination occurs and health and welfare continuation through the end of the term in accordance with the Company’s severance policy.
In the event such a termination occurs within the two-year period following a “change in control,” Mr. McMahon will instead be eligible to receive a lump sum cash payment equal to two times his then-current base salary, a lump sum cash payment equal to two times Mr. McMahon’s annual bonus based on target performance, a prorated portion of the annual bonus based on target performance for the year in which the termination occurs, full accelerated vesting of Mr. McMahon’s unvested equity awards, and health and welfare continuation for the twenty-four month period following the termination.
