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Column: Vince McMahon's 2003 Salary; Dividends; & WWE Stock Tidbit
By Anthony DeBlasi
Nov 14, 2003, 19:05 <<BACK TO NEWSBOARD

Earlier today I posted WWE's announcement of issuing a 4 cent dividend once again this year. I made a comment asking if this dividend is really a "bonus" for the stockholders who are not part of WWE management, or another way for Vince to pad his wallet.

I received a ton of emails since that post, asking for information as to how much stock Vince owns (percentage), how much he made earlier this year, etc. A few emails asked me if what Vince is doing, legal.

First, let me say that everything Vince McMahon is doing with these dividends are legal. However, with the financial state of WWE; is this appropriate? If anyone believes a post like this is another excuse to trash WWE, you're wrong. As I stated earlier; I own 500 shares, so I receive the dividend as well. But when this public company loses over $400 million in a matter of 3 years, cuts wrestler's salaries, raises prices on merchandise, tickets, PPV, etc, do you think Vince should be taking a $13 Million dollar bonus?

As a business man, Vince has every right to have the money, as it's his company. A few people emailed me and used Bill Gates as an example; as he's done the very same thing with dividends. However, you do not see Bill Gates raising the price of software, cutting employees, and lowering salaries of the ones he keeps, when he takes these dividends. USA Today, Forbes Magazine, The Wall Street Journal, and others absolutely criticized Vince taking a double salary and increase this year, while his company is taking a bath financially. Now this dividend. Here's a look at the dividend, Vince's earning from it, and his 2003 Projected salary:

Total WWE shares are 68,389,739. Vince McMahon owns approximately 83% of these shares, which would calculate to around 56 Million shares. At 4 cents per share for this dividend, Vince McMahon will receive approximately $2.2 Million Dollars.

Keep in mind that already this year, Vince's salary rose to $1.1 Million, received an additional $850,000 for "talent fees" (being an on air character), and has already received $8,764,833 in stock dividends.

Here is what Vince McMahon will make in 2003:

$10,964,833 - Stock Dividends
$ 1,100,000 - Base Salary
$ 850,000 - Talent Fees
_______________________
$12,924,833 - Approximate 2003 Salary

So again, everything Vince is doing with these dividends are legal. However, when he owns 83% of these shares, the reaction overwhelmingly is negative.

Here's one more point some may find interesting with this. Right before WWE announced their dive into the cell phone business, the stock traded at $11.75. Since then, it started to drop approximately 80 cents per share over the last week. This morning when word started to circulate about the dividend, the stock dropped an additional 28 cents today alone. In one week, the WWE lost close to $69 million dollars. Smart business from a few years ago, seems to have turned into selfish business. Sometime next week, I will get into the "double salaries" that many McMahons are making this year.

Thanks for reading.
Anthony DeBlasi
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