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Ari Emanuel can be rewarded if Endeavor's share price behaves well after its IPO, according to a profit sharing agreement filed Wednesday with the Securities and Exchange Commission.
Emanuel, the company's CEO, will receive $ 25 million of shares if the company's market capitalization exceeds $ 7.525 billion over the next nine years. It will then receive another stock of $ 12.5 million for every additional $ 1 billion of market capitalization capital thereafter. For the purposes of the agreement, the market capitalization will be determined as an average value over a month.
The equity objectives provide a rough idea of the company's expectations as it prepares to be listed on the New York Stock Exchange. A market capitalization of $ 7.5 billion would represent an improvement of approximately $ 1 billion over the Company's last valuation in private markets.
Endeavor requested to go public on May 23. In addition to owning the William Morris Endeavor art agency, the company controls the Ultimate Fighting Championship and also owns the Miss Universe contest.
On March 13, Emanuel renegotiated his contract, raising his base salary from $ 1 million to $ 4 million and his $ 3 million bonus to a $ 6 million goal. These figures were disclosed in the S-1 of the company filed in May. S-1 also revealed that Emanuel would be eligible for incentives if the company achieved certain values, even if it did not reveal them.
Emanuel has a similar arrangement with Zuffa Parent LLC, the Endeavor subsidiary to which the UFC belongs. According to a document filed on Wednesday, Emanuel would be entitled to $ 12.5 million in stock awards if the value of Zuffa met additional unspecified targets. The agreement provides that Zuffa could become public, in which case the awards would be increased to $ 14 million. Otherwise, the fair value could be determined by a partial or total sale of Zuffa's equity.
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