Vince McMahon signs WWE employee agreement, gains full rights to his likeness & story

Vince McMahon is officially a WWE employee once again, according to a new SEC filing, and also has full rights to his life story and likeness.

Announced Friday morning, McMahon entered into an employment agreement on Thursday, March 29th and will continue serve as Executive Chairman of the Board for two years, retroactive to January 9, 2023.

The agreement and Board seat will automatically renew for one year unless either WWE or McMahon himself provides at least 180 days notice.

After resigning last summer following the scandal surrounding him, McMahon returned to the company’s Board in January with a focus on helping to sell the company, leading to speculation as to how much he is involved in other areas.

McMahon and WWE also came to the agreement that he both owns his legal name and variants (ex. “Mr. McMahon) in addition to his image, voice, likeness “and other distinguishing characteristics.”

Additionally, he owns his “personal experiences, biography and life story, and all other rights of publicity and persona relating to McMahon (collectively, the “McMahon Intellectual Property”) in perpetuity. He has granted WWE “the non-exclusive right” to use that IP.

McMahon “will have the exclusive right to communicate, convey, commercialize, license, or otherwise exploit his life story, including to create, develop, publish, perform, display, use, license, and otherwise exploit any content and works relating to the same, in any form or medium, whether now known or hereafter created, including without limitation any books (memoir, biography, autobiography, etc.), articles or essays, audio recordings, audiovisual works (documentary, biopic, scripted program, dramatization, fictionalization, etc.).”

As part of the employment agreement, McMahon will earn $1.2 million annually with a target bonus opportunity of 175% and an annual stock grant value of $4.3 million, subject to performance metrics. If WWE terminates his position without cause or if he terminates it for “good reason,” he is eligible to receive severance.

If that termination was to occur due to a “change in control,” McMahon “is 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.”

Also announced in the filing, WWE CEO Nick Khan was given a raise with his annual base salary increasing from $1.35 million to $1.5 million, his annual target bonus opportunity increased from 160% to 175%, and his annual stock grant increased from $3.575 million to $5.375 million, subject to performance.