Vince McMahon is committed to a two-year contract while WWE looks for buyers

Vince McMahon signed a two-year contract World Wrestling Entertainment.

WWE’s boss agreement goes back to January 3rd. 9, when he returned to the company, according to the securities deposit. His deal comes as WWE is in active talks with suitors.

As part of his latest contract, which comes with an annual base salary of $1.2 million, which includes an incentive bonus target of 175% of that salary. If a deal closes, McMahon will receive $2.4 million in one payment, plus double his incentive bonus and pay it upfront.

CEO Nick Kahn told CNBC’s Morgan Brennan this week that it’s been a strong sell-off so far with several bidders attracted. Earlier in the week, CNBC’s David Faber reported, citing people familiar with the matter, that it was a “hot and heavy” process.

McMahon returned to the WWE board of directors in January to help with the sale negotiations. He stepped down as CEO last June under a cloud of accusations of sexual misconduct from former female WWE employees. Later, he announced his retirement.

At the time, his daughter, Stephanie McMahon, took over as co-CEO of WWE, the McMahons’ family business. She quit in January after the return of Vince McMahon.

Last month, Khan told CNBC that McMahon would be open to stepping down “if it’s the right deal.” CNBC previously reported that the potential future involvement of McMahon, the controlling shareholder in WWE, became an early sticking point in initial talks with some buyers.

“Vince has made it clear to me and the market that he does not need to be included in any show or any deal going forward, and he has kept his word on that as many of us expected he would,” Khan said on CNBC earlier. this week.

Khan added that since McMahon’s return in the past three months, he has been “completely complementary to myself, to being creative, to being an expert on the job here when we want to reach out and have conversations”.

In addition, his contract gives McMahon the rights to his “life story” and related intellectual property, according to the filing.

McMahon acquired the company from his father in 1982 and continued to run it until 2022. He has even entered the ring on numerous occasions. His contract agreement gives him the right to tell his life story with WWE, with the guarantee that he won’t face any lawsuits or punishment from the company in the future.

Shares of WWE are up about 34% so far this year, easily outperforming the broader market, amid heavy selling talk.