SoFi CEO enters prepaid forward contract on 1.5 million shares
Warner Bros. Discovery, Inc. (NASDAQ:WBD) announced on Monday the signing of employment agreements with top executives as part of its strategic reorganization. The company, which is preparing to separate its Streaming & Studios division from its Global Networks division, has entered into new contracts with CEO David Zaslav and CFO Gunnar Wiedenfels to ensure leadership continuity.
The agreements, effective June 12, 2025, aim to secure the executives’ leadership through the initial stages of the two new publicly traded companies that will result from the planned separation. Zaslav’s agreement amends and restates his prior employment contract, with terms effective upon the separation, when he is anticipated to become CEO of the Streaming & Studios entity. Wiedenfels’ agreement is contingent upon the separation and outlines his role as CEO of the Global Networks division post-separation.
Zaslav’s new compensation package, designed to align with shareholder interests, includes a significant reduction in his target annual compensation, with a greater emphasis on long-term equity incentives. His agreement includes a one-time inducement of stock options awarded on June 12, 2026, a portion of which is subject to forfeiture if the separation or a qualifying transaction does not occur by December 31, 2026.
Wiedenfels’ compensation package, effective upon the successful completion of the separation, reflects his expanded responsibilities as CEO of Global Networks. His base salary is set at $2.5 million per annum, with eligibility for an annual cash bonus and equity awards under the Global Networks Plan.
The company’s strategic reorganization is aimed at enhancing focus and creating shareholder value, with the separation expected to result in two distinct, publicly traded companies. The new employment agreements are part of Warner Bros. Discovery’s efforts to maintain stability and drive growth during this transformative period. For deeper insights into WBD’s financial health and growth potential, including exclusive ProTips and comprehensive valuation metrics, investors can access the detailed Pro Research Report available on InvestingPro.
The information in this article is based on a press release statement.
In other recent news, Warner Bros. Discovery has initiated a substantial debt reduction effort, aiming to repurchase up to $14.6 billion of its outstanding notes. This buyback program is part of the company’s strategy to streamline its capital structure and reduce debt, following its merger. Additionally, Warner Bros. Discovery has announced an early settlement for its cash tender offers, expected to occur on June 30, 2025, contingent upon receiving necessary consents and meeting other conditions. The company has also updated stakeholders on its tender offers through a list of frequently asked questions, offering further clarity on the process.
Fitch Ratings has downgraded Warner Bros. Discovery to ’BB+’ from ’BBB-’ and placed it on Watch Negative, following the company’s announcement to split into two entities. This separation will result in Warner Bros. Discovery becoming smaller and less diversified, with Fitch expressing concerns over the future credit profile. UBS has maintained a Neutral rating on the company’s stock with a $9 target, acknowledging the reorganization into two publicly traded entities. The GN division will retain a 20% equity stake in the S&S segment, which it plans to monetize to reduce debt.
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