and (B) the number that results from dividing the number of days remaining through the end of his term (following the date of termination) by 365, times (i) his annual base salary as in effect on January 1, 2021 (regardless of when such termination occurs) and (ii) his target bonus, in each case, payable in 12 monthly installments.
Any such severance payments will be subject to applicable taxes and Mr. Hornbuckle’s execution and non-revocation of a general release of claims.On March 31, 2020,August 18, 2022, we also entered into a new employment agreement with Mr. Sanders that provides for a term until MarchAugust 31, 20232025 and a minimum base salary of $1,000,000,$1,250,000, commencing on September 1, 2022. Mr. Sanders’ agreement also provides for an annual target bonus equal to 175% of his base salary, which was reduced fromwill be prorated for his priorbonus for the year ended December 31, 2022. The agreement provides that Mr. Sanders is eligible, at the discretion of the Human Capital and Compensation Committee, to receive annual equity grants of $3,750,000, starting in 2022, which are expected to be provided 40% in RSUs and 60% in performance-based stock units. Mr. Sanders’ employment agreement incorporates the Severance Policy described below.
On August 18, 2022, we also entered into a new employment agreement with Mr. Halkyard that provides for a term until February 1, 2026 and a minimum base salary of $1,250,000.$1,100,000, commencing on September 1, 2022. Mr. Sanders’Halkyard’s agreement also provides for an annual target bonus equal to 150% of his base salary, which was reduced fromwill be prorated for his priorbonus for the year ended December 31, 2022. The agreement provides that Mr. Halkyard is eligible, at the discretion of the Human Capital and Compensation Committee, to receive annual target bonusequity grants of 175%. In connection with entering into the new$2,750,000, starting in 2022, which are expected to be provided 40% in RSUs and 60% in performance-based stock units. Mr. Halkyard’s employment agreement Mr. Sanders was granted 35,400 RSUs as part of his 2020 annual equity grant.
incorporates the Severance Policy described below.On March 30, 2020,August 18, 2022, we also entered into a new employment with Mr. McManus that provides for a term until MarchAugust 31, 20232026 and a minimum base salary of $700,000, which was reduced from his prior salary of $850,000.$900,000, commencing on September 1, 2022. Mr. McManus’ agreement also provides for an annual target bonus equal to 120%125% of his base salary, which was reduced fromwill be prorated for his priorbonus for the year ended December 31, 2022. The agreement provides that Mr. McManus is eligible, at the discretion of the Human Capital and Compensation Committee, to receive annual target bonusequity grants of 125%. In connection with entering$2,250,000, starting in 2022, which are expected to be provided 40% in RSUs and 60% in performance-based stock units. With respect to severance, Mr. McManus’ employment agreement incorporates the Severance Policy described below.
On October 10, 2022, we entered into thea new employment agreement, Mr. McManus was granted 26,100 RSUs as part of his 2020 annual equity grant.
On January 11, 2021, we entered into an employment agreementdated October 4, 2022, with Jonathan Halkyard,Gary Fritz, our new Chief Financial Officer and Treasurer.President, Interactive. Mr. Halkyard’sFritz’s employment agreement provides for a term until January 10, 2024September 30, 2026 and minimum base salary of $900,000$1,250,000 and an annual target bonus equal to 150%100% of his base salary. In connection with entering intosalary; provided, that, for the year ended December 31, 2022, Mr. Fritz shall only be entitled to a prorated portion of this employmentbonus. The agreement provides that Mr. Fritz is eligible, at the discretion of the Human Capital and as partial consideration for hisCompensation Committee, to receive annual equity awardgrants of $3,750,000, starting in 2022, which are expected to be provided 40% in RSUs and 60% in performance-based stock units. In addition, the agreement provides Mr. Fritz with two potential special bonus opportunities for the 2021 calendar year,$2,000,000 each, paid 50% as a lump sum cash amount and 50% in February 2021 Mr. Halkyard was grantedRSUs for (1) achievement of a number of RSUs havingtrailing twelve month Adjusted EBITDA at BetMGM, LLC and (2) successfully launching a grant date fair value of $900,000.defined digital offering on an MGM property. With respect to severance, Mr.��Halkyard’s Fritz’s employment agreement incorporates the Severance Policy described below.
Employment Agreement with Mr. Murren, our Former Chief Executive Officerbelow and Subsequent Transition Agreement
On October 3, 2016, we negotiated a new employment agreement with Mr. Murren (the “Murren Employment Agreement”), our former Chairman and Chief Executive Officer, which provided for a term until December 31, 2021 and a minimum base salary of $2,000,000 per year. The Murren Employment Agreement also provided for a target bonus for each of fiscal years 2017-2021 equal to 200% of Mr. Murren’s base salary, up to a maximum bonus of 175% of the target bonus.
On February 11, 2020, Mr. Murren and the Company entered into the Transition Agreement in connection with the transition of Mr. Murren’s role with the Company. The Transition Agreement provided that Mr. Murren would continue to serveprovides certain additional severance provisions as Chief Executive Officer and Chairman until a successor was appointed. Pursuant to the terms of the Transition Agreement, during the period between Mr. Murren’s resignation as CEO and through December 31, 2020 (the “Transition Period”), Mr. Murren would continue to be employed by the Company as a Senior Advisor, subject to earlier termination of employment by the Company or Mr. Murren, and be entitled to the following compensation and benefits: (a) continuation of his current annual base salary of $2,000,000; (b) payment of a fixed bonus of $4,000,000 in cash at the end of 2020, consistent with the target bonus amount under his Employment Agreement; and (c) an equity award of time-based restricted stock units that vest ratably on a monthly basis from the date of grant until December 31, 2021 having an aggregate grant date fair market value of $7,000,000 (the “2020 Equity Award”), consistent with the value of the annual equity award granted to Mr. Murren in prior fiscal years, with the 2020 Equity Award to be granted at the same time as equity awards are granted to senior executives of the Company generally during fiscal year 2020.
On March 22, 2020, Mr. Murren’s employment ended and he received the compensation and benefits provided for pursuant to a termination by the Company without “good cause” during the Transition Period under the Transition Agreement, which was subject to his execution of an effective release of claims against the Company.
The Transition Agreement superseded the terms of Mr. Murren’s Employment Agreement in certain respects, particularly with respect to severance entitlements. The Transition Agreement provided that if Mr. Murren’s employment were terminated prior to the end of the Transition Period by the Company for any reason other than for the Company’s “good cause,” Mr. Murren would be entitled to receive, subject to his execution of a release of claims against the Company and honoring the terms of his restrictive covenants, a lump sum cash severance payment of $12,000,000, which represents two times the sum of Mr. Murren’s annual base salary