Ynon Kreiz has joined Paramount and Warner Bros. as co-CEO, and the terms of his move are now public. The deal gives him a $31.5 million signing bonus in restricted stock units, plus an annual RSU grant worth $20.1 million and $5.1 million in RSUs tied to a long-term incentive plan. The arrangement was disclosed in an SEC filing from Paramount Skydance, which controls the soon-to-be-combined Paramount-Warner Bros. entity.
Kreiz left his role at Mattel to take the job. His new salary is $5 million, plus a $4.9 million annual target bonus, though both figures depend on the Warner Bros. Discovery merger closing. The RSU-heavy structure means his actual pay could rise substantially if the combined company’s stock performs well — or fall short if it does not.
The Numbers Behind Kreiz’s Pay
Kreiz’s base salary of $5 million would put him on the higher end of what media and entertainment CEOs typically earn. His total package includes the $31.5 million signing bonus, the $20.1 million annual RSU grant, and the $5.1 million in RSUs from the long-term plan. The bonuses are subject to performance conditions, so his actual take-home pay can vary widely from year to year.
The RSU structure means Kreiz’s compensation is tied directly to the stock price of the combined company. If the stock rises, so does his equity value. If it falls, his paper wealth shrinks. That is a large bet on the success of the merger.
How the Deal Was Agreed
David Ellison, who will serve as chairman and CEO of the combined entity, recruited Kreiz from Mattel. Kreiz will help Ellison manage the company’s day-to-day operations. Paramount Skydance’s board and Kreiz agreed to the deal on Sep. 27.
Kreiz will start on Monday Oct. 5, with the Warner Bros. Discovery merger expected to close the next day, Oct. 6. The timing means his employment begins almost immediately after the deal takes effect.
Comparing Kreiz’s Pay at Mattel
Kreiz’s compensation package at Mattel last year was about $15 million. The jump to Paramount and Warner Bros. is substantial, moving from roughly $15 million to a package that includes tens of millions in RSUs.
The comparison shows the scale of the move. Kreiz is leaving a well-paid position at Mattel for a role that comes with a much larger equity stake, even if that equity is not cash in hand.
What the RSUs Mean
RSUs are restricted stock units, a form of equity compensation. They vest over time, meaning Kreiz does not control or sell them until specified dates pass. The $31.5 million signing bonus is paid in RSUs, and the annual grants continue year by year.
The performance conditions attached to the bonuses mean Kreiz does not walk away with guaranteed cash. His pay is linked to the company’s financial results and stock performance, and those conditions apply to both the bonus and the RSUs.
The Risk in the Package
The RSU-heavy structure carries risk. If the combined company’s stock price falls, Kreiz’s equity value drops with it. There is no guarantee that the stock will appreciate, and the conditions attached to the bonuses mean his actual income can vary dramatically depending on how the company performs.
That is the nature of equity compensation in a newly merged company. The upside is potentially large, but so is the downside.
How the Deal Came Together
The deal was agreed on Sep. 27, and Kreiz’s start date is Oct. 5. The merger is expected to close the following day. The timeline shows the operation running at full speed, with the board approving the terms and Kreiz committing to join within days.
The agreement between Paramount Skydance’s board and Kreiz was reached quickly, and the start date follows immediately behind the approval. That suggests the negotiations were resolved without significant delay.
The Bottom Line on Kreiz’s Pay
Kreiz’s compensation package is generous, but it is not without strings. The RSUs mean his pay is tied to the stock price, and the performance conditions mean his income is not fixed. For a CEO joining a newly merged company, that is the trade-off.
The disclosure of the terms comes with a reminder that the actual money depends entirely on how the bet plays out. The combined company’s stock price will determine whether Kreiz’s equity pays off or loses value.
The Deal at a Glance
- Salary: $5 million
- Target bonus: $4.9 million annually
- Signing bonus: $31.5 million in RSUs
- Annual RSU grant: $20.1 million
- Long-term incentive RSUs: $5.1 million
- Start date: Oct. 5
- Merger close: Expected Oct. 6
- Mattel pay last year: About $15 million
The package is large, and it is structured to reward long-term success. Whether that structure pays off for Kreiz will depend on the combined company’s stock performance over the coming years.
For now, the terms are on the record, and the merger is on track to close by the end of next week. Kreiz’s tenure at Paramount and Warner Bros. begins with a bet on the future of the combined company — a bet measured in millions of dollars of equity.
“The RSU-heavy package means that if the company’s stock appreciates, so will his equity.”
See the a run of 29 images at The Hollywood Reporter.
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