Fat Brands, Inc 8-K

What Happened
Fat Brands, Inc. (FAT) filed an 8-K reporting that on December 31, 2025 it entered into letter agreements with three named executive officers — Kenneth Kuick (CFO), Thayer Wiederhorn (COO) and Taylor Wiederhorn (Chief Development Officer) — to resolve unpaid 2024 bonuses and increase base salaries. Each executive agreed to waive their previously granted but unpaid 2024 bonuses; the company paid 50% of those amounts as retention bonuses on January 2, 2026. The company also raised each executive’s base salary from $550,000 to $950,000 effective January 1, 2026. The form of the Letter Agreement is filed as Exhibit 10.1.

Key Details

• Retention bonuses paid on Jan 2, 2026: Kenneth Kuick $500,000; Thayer Wiederhorn $550,000; Taylor Wiederhorn $550,000.
• Base salary increases effective Jan 1, 2026: from $550,000 to $950,000 for each of the three NEOs.
• Retention and salary increases are conditional: executives must remain employed through the earlier of (i) June 30, 2026, or (ii) certain Chapter 11 bankruptcy milestones; otherwise they may be required to repay amounts received (except for death or disability), with repayment required if they voluntarily resign (other than death/disability) or are terminated for cause.
• Letter Agreements dated December 31, 2025 and described in the 8-K (filed Jan 7, 2026); full form of agreement attached as Exhibit 10.1.

Why It Matters
These actions increase near-term cash compensation (retention bonuses paid) and raise ongoing salary expense for three senior executives, which could affect Fat Brands’ operating costs. The retention structure and repayment/clawback provisions indicate the company’s intent to keep these executives through mid-2026, while tying recovery of paid amounts to voluntary departures, termination for cause, or bankruptcy outcomes. Investors should note the concrete dollar amounts and the conditional nature of the payments when assessing executive compensation and potential short-term cash impacts.