Vince McMahon's WWE Chairman Employment Agreement Length Revealed
Vince McMahon returned to WWE this past January in an effort to help with a sale of the company. This comeback ended Vince's six-month retirement, as he stepped away from the global leader in sports-entertainment in Summer 2022 due to a series of various sexual misconduct allegations. Vince's initial departure led to significant company-wide shake-ups, as daughter Stephanie McMahon stepped into WWE Chairwoman and co-CEO responsibilities while Paul "Triple H" Levesque assumed creative control of the promotion. Upon Vince's return, Stephanie resigned from her positions and departed WWE completely, leading to Nick Khan taking on sole CEO responsibilities. Creative control still rests in Triple H's hands.
The emphasis that Vince is only back to his post to assist with a sale has led to questions about what the WWE Chairman will do after a hypothetical purchase is made. While it's unclear as to if this business transaction will go down in the coming months or the coming years, Vince will be sticking around until at least 2025.
According to a new SEC filing, Vince began an employment agreement with WWE that was effective as of this past Wednesday, March 29th. The agreement is retroactive to January 9th, as that was the date that Vince was elected as WWE Chairman. The filing states that Vince will serve as WWE Chairman for a two-year term.
The filing states the following...
"Mr. McMahon entered into an employment agreement with the Company, effective as of March 29, 2023 (the "McMahon Employment Agreement"), pursuant to which, retroactive to January 9, 2023 (the date Mr. McMahon was appointed Executive Chairman of the Company), 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. The McMahon Employment Agreement provides that Mr. McMahon will receive (i) an annual base salary of $1.2 million, (ii) an annual target bonus opportunity (as a percentage of annual base salary) of 175% and (iii) an annual equity grant date target value set at $4.3 million, subject to performance metrics and vesting periods (as determined by the Committee). In the event the Company terminates his employment without "cause" (as defined in McMahon Employment Agreement) or he terminates his employment for "good reason" (as defined in the McMahon Employment Agreement), Mr. McMahon will be eligible to receive as severance (a) base salary continuation through the end of the term (or, if longer, for one year), (b) a prorated portion of the annual bonus based on target performance for the year in which the termination occurs and (c) 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" (as defined in the McMahon Employment Agreement), Mr. McMahon will instead be eligible to receive (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."
Vince will also be in attendance for WWE WrestleMania 39 this weekend.