Struggling electric-vehicle startup Faraday Future has announced big salary and bonus increases for its CEO and founders, despite the company's poor performance and ongoing financial woes after shipping just 13 electric vehicles in the past decade.
TechCrunch Reports Faraday Future has decided to give big raises and bonuses to its top executives despite facing severe financial difficulties and having delivered just 13 cars in its 10-year history. The decision, revealed in a regulatory filing on Wednesday, comes as attention given recent layoffs and furloughs affecting the majority of the company's workforce.
According to the filing, CEO Matthias Eitt's salary will increase from $400,000 to $700,000, with a “one-time recognition bonus” of $500,000, an “annual discretionary target bonus” of $700,000, and two annual stock grants valued at more than $4 million. Similarly, founder Jia Yueting's salary will increase from $450,000 to $680,000, with a $500,000 recognition bonus, an annual discretionary target bonus of $816,000, and two annual stock grants also valued at more than $4 million.
The timing of these generous compensation packages is especially impressive given Faraday Future's ongoing financial woes: The company finished the second quarter with just $793,000 in unrestricted cash and recently announced $22.5 million in new financing through convertible notes and warrants. This comes after the company laid off or furloughed hundreds of employees and faced eviction from its Los Angeles headquarters in February 2024.
Faraday Future's past is also marked by controversy, with the company facing accusations in two whistleblower lawsuits that it falsified some of its limited sales figures. The company disputes these allegations, but in regulatory filings acknowledged that a third employee made similar allegations. Additionally, the company is under active investigation by the Securities and Exchange Commission, with two additional subpoenas issued earlier this year.
Ait and Zia's raises and bonuses are subject to certain conditions. Initially, they will receive prorated base salaries of $550,000 and $612,000, respectively, of which they must agree to use at least $340,000 to buy company stock. The remaining raises will only be paid if the company restores full salaries to all other employees who are working on reduced salaries. The lump sums will be paid in installments, with 25% to be paid on Sept. 30, the remaining 25% on Oct. 31, and the remainder on Sept. 30, 2025 or the closing of a funding round in excess of $30 million, whichever comes first.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
