Six Flags appoints John Reilly as CEO

It's fun to speculate on who else they should have hired. But, senior hires are hard. You aren't just hiring that person, but if they have a partner/family, you are asking them to change their lives as well. It has to be the right time with respect to their current role. For example, if someone is in the middle of an initiative that they feel strongly about, it is much harder to get them to move, even for a "better" job. The also need to want the new challenge they are being offered, and "now" needs to feel like a good time to take on that challenge.

And that is even before you ask whether or not this is actually a "better" job.

Who wouldn't want to oversee the Six Flags bankruptcy proceedings?

hambone:

Who wouldn't want to oversee the Six Flags bankruptcy proceedings?

The tell will be how much equity he's given as a starting perk. Look for that insider reporting form, OR LACK THEREOF.

US Securities & Exchange Commission Form 3 is required 10 calendar days of becoming an insider. I guess from his effective date, but one would assume that it would be from the date of announcement (or start date, quibbling here, I know). So we should see a filing on 12/3 or 12/4 if he currently holds anything, even if as a private citizen prior to the announcement. SEC form 4 is required 2 days after a transaction, such as the awarding of options, so we would have expected to see that today/tomorrow (holiday ??) if measured from the announcement date. Again, I'll admit I don't know the start date, and don't know at what point options (if any at all) would be effective in the transition.

If he waltzes in with NO options on the table that's the clue that they didn't think options were an enticement (read into that what you should).

From the Company's recent 8-K:

In connection with Mr. Reilly’s appointment, on November 21, 2025, the Company entered into an employment agreement, effective December 8, 2025, with Mr. Reilly for a period of three years subject to automatic renewal for successive one-year periods thereafter. Under the terms of the employment agreement, Mr. Reilly will report directly to the full Board. The employment agreement provides for, among other things, an initial base salary of $1,100,000 per year, subject to annual review by the Board for possible increase. Mr. Reilly will participate in the Company’s annual bonus program with an initial target rate of 150% of his base salary and a maximum bonus of 300% of his base salary, with performance metrics established by the People, Culture & Compensation Committee of the Board (the “PCCC”). The employment agreement also provides that Mr. Reilly will receive an annual equity grant during each year of the term of the agreement (beginning in 2026) with a target value of $5,625,000 on the date of grant, to be the same as such goals approved by the PCCC for other senior executives of the Company. Mr. Reilly will also receive a day one equity grant with a target value of $7,500,000 (comprised of (i) $2,500,000 grant date value in the form of restricted stock units and (ii) $5,000,000 grant date value in the form of performance stock units) scheduled to vest on the third anniversary of the grant date subject to Mr. Reilly’s continued service with the Company and the achievement of applicable performance goals (in the case of the performance stock units) as to be set forth in the award agreement evidencing such award. Mr. Reilly will participate in benefit plans on the same basis as other senior executives, including medical, disability, life, 401(k) and deferred compensation plans.

https://d18rn0p25nwr6d.clou...245fcb.pdf

Copy of his employment agreement will be filed with Company's 10-K for 2025.

Filing also references amendments to certain existing employment agreements:

The Amendments provide for, among other things, the payment of a retention bonus to each Executive, less applicable tax withholdings, payable in a lump sum on July 1, 2026, subject to continued employment with the Company through such date. The individual retention amounts applicable to each Executive are as follows: (i) Tim Fisher - $750,000, (ii) Brian Witherow - $670,000, (iii) Brian Nurse - $600,000, (iv) Christian Dieckmann - $500,000 (v) Ty Tastepe - $460,000, and (vi) David Hoffman - $450,000. If the Executive’s employment terminates for any reason prior to July 1, 2026, the retention bonus will be forfeited.

That's pretty standard, though it would be helpful to know what the PCCC "performance metrics" are.

I guess my point is going from the COO of a $575 million company to President and CEO of a $3.5 billion company … is a massive jump, to say the least. How two companies with that size difference operate is just massively different.

If they were going to go with a pure park operator, they’ve got a plethora inside the company - who have a significantly larger portfolio/responsibility than Reilly in their individual roles.

The company is a mess due to the disaster of a merger. Just not sure it’s the right time for someone to cut their teeth at running a very large organization.

So a person who is at the company but who has never been a CEO is more qualified than a CEO who ran a smaller company?

In my view, yes. The COO, CFO, etc of a $3.5 billion company would be more qualified/have more relevant experience to be the CEO of said $3.5 billion company... than the COO of an outside $575 million company.

With Bassoul out of the picture, I just don't know what the company is getting with Reilly over Zimmerman - other than a guy who has never run a company this size, with no institutional knowledge and less experience than Zimmerman.

Again, not a knock on Reilly. From everything I've heard, he's an impressive leader. But probably more qualified for a Regional VP role at FUN, not the CEO spot.

This company is a mess post-merger. They need someone who can navigate a lot of landmines... competing priorities, noisy stakeholders and a potential fiscal crisis - while delivering a 180 on the guest experience and totally rebuilding the internal culture. Just not sure the COO of a $575 million company with a bunch of small amusement parks is equipped for that. Hoping I am wrong.

It’s entirely possible that the people behind this decision gained a little more insight into his background, experience, and qualifications by being in the room with him than you have gained by reading a few articles about him on a screen.

Just sharing my perspective (thought the point of a forum like this). Not saying I’m right - and as I’ve said, hoping I’m wrong.