Skydance extends employment contracts with salary increases for CEO and senior management

Newly formed Skydance has extended and expanded the employment contracts of some key company executives, including CEO David Ellison, President Andrew Brandon-Gordon, CFO Dennis Cinelli and General Counsel Makan Delrahim.

Also Tuesday, Warner Bros. Discovery noted transaction bonuses for several executives as part of the gravy train triggered by the mega-merger of Paramount and WBD.

At Skydance, Ellison and Brandon-Gordon’s employment contracts will last until August 7, 2031. For Cinelli and Delrahim, the dates are January 15, 2032 and October 6, 2031, respectively, according to an SEC filing today.

The four’s annual base salaries increased to $5 million for Ellison, $4 million for Brandon-Gordon and Delrahim and $3.4 million for Cinelli. Target annual bonuses reached $5 million for Ellison and $2.6 million for the other three executives.

Beginning in 2027, Ellison, Brandon-Gordon, Delrahim and Cinelli will be eligible for annual equity awards with an aggregate grant date value of $5 million, $1.4 million, $1.25 million and $4.4 million, respectively. This increases in 2031 to annual awards valued at $20 million for Ellison, $13.4 million for Gordon and Delrahim and $12.5 million for Cinelli.

The new agreements also grant Ellison, Brandon-Gordon, Cinelli and Delrahim grants of restricted stock units covering 104,167, 29,167, 26,042 and 91,667 shares of Class B common stock, respectively.

As reported in May, Ellison will receive a $50 million cash award and restricted stock units, or RSUs, valued at $100 million, set after the merger closes. Brandon-Gordon will receive a $15 million cash bonus and RSUs valued at $23 million, and Delrahim $12.5 million each in cash and RSUs.

The money will be paid in one lump sum within 30 days of closing, whichever is earlier today. The RSUs will vest in equal quarterly installments over a period of five years following closing.

As for Warner Bros. Discovery, it revealed separate bonuses for several departing executives that are not part of their overall separation agreements, revealed earlier this year when the deal was announced. Specifically, Chief Financial Officer Gunnar Widenfels and Chief Revenue and Strategy Officer Bruce Campbell will receive $2.14 million and $2.94 million, respectively, in cash transaction bonuses from a pot created in late 2025 “to recognize and encourage the contributions of selected key employees” other than CEO David Zaslav during the merger process. The payments were noted in what could be one of WBD’s final SEC filings as it disappears as a corporate entity.

The CEO has his own, bigger pot. More on this below.

JB Perette, one of Zaslav’s few high-level lieutenants who opted for the new Skydance, will also receive a $2.85 million deal bonus. All of these allocations became vested upon closing and will be paid out no later than the following 60 days.

Zaslav’s last day is today. Wiedenfels and Campbell depart on October 16.

RELATED: David Zaslav Farewell: Warner Bros. CEO Discovery signs its message to staff

As noted, Zaslav’s minimum payout of approximately $550 million is comprised of $34.2 million in cash severance and equity valued at $517.2 million, reflecting the aggregate cash value of unvested WBD options, unvested WBD RSUs and unvested WBD PRSUs (performance restricted stock units). The tranche also includes $44.2 million in perquisites as well as a tax refund of up to $334 million. The latter item will likely be significantly lower given the timing of the closing.

With WBD completed, it is unclear if and where Zaslav’s final golden parachute number or his compensation for 2026 will be revealed. He has consistently been among the highest-paid entertainment executives over the past several decades.