Faraday Future CEO and Founder Receive Massive Raises and Bonuses Amid Financial Struggles
Faraday Future, despite its history of delivering only 13 cars in 10 years and recent layoffs, has announced significant salary increases and bonuses for CEO Matthias Aydt and founder Jia Yueting. The company's regulatory filing revealed Aydt's salary jumping from $400,000 to $700,000, along with a $500,000 recognition bonus and stock grants. Jia's salary is increasing to $680,000, with similar bonuses and stock grants.
This move comes as Faraday Future faces financial challenges, with just $793,000 in unrestricted cash at the end of the second quarter of 2022. The company secured $22.5 million in new financing commitments but has faced scrutiny for its sales practices and employee lawsuits. Additionally, Faraday Future is under investigation by the SEC.
The raises and bonuses for Aydt and Jia come with conditions, including a requirement to purchase company shares and a commitment to restore full salaries for all employees. The bonuses will be paid out in installments over time.
In conclusion, Faraday Future's decision to reward its top executives with lavish raises and bonuses raises questions about the company's financial stability and priorities. Investors and employees should monitor the situation closely to understand the potential impact on their investments and careers.