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.
On March 31, 2020, we also entered into a new employment agreement with Mr. Sanders that provides for a term until March 31, 2023 and a minimum base salary of $1,000,000, which was reduced from his prior salary of $1,250,000. Mr. Sanders’ agreement also provides for an annual target bonus equal to 150% of his base salary, which was reduced from his prior annual target bonus of 175%. In connection with entering into the new employment agreement, Mr. Sanders was granted 35,400 RSUs as part of his 2020 annual equity grant.
On March 30, 2020, we also entered into a new employment with Mr. McManus that provides for a term until March 31, 2023 and a minimum base salary of $700,000, which was reduced from his prior salary of $850,000. Mr. McManus’ agreement also provides for an annual target bonus equal to 120% of his base salary, which was reduced from his prior annual target bonus of 125%. In connection with entering into the 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 agreement with Jonathan Halkyard, our new Chief Financial Officer and Treasurer. Mr. Halkyard’s employment agreement provides for a term until January 10, 2024 and minimum base salary of $900,000 and an annual target bonus equal to 150% of his base salary. In connection with entering into this employment agreement and as partial consideration for his annual equity award for the 2021 calendar year, in February 2021 Mr. Halkyard was granted a number of RSUs having a grant date fair value of $900,000. With respect to severance, Mr. Halkyard’s employment agreement incorporates the Severance Policy described below.
Employment Agreement with Mr. Murren, our Former Chief Executive Officer 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 serve 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
