Devin Nunes, CEO of Trump Media, received a stock award worth $5.9 million, despite the company experiencing a $20 million loss.
In a move that aligns executive compensation with long-term company performance, Trump Media, the parent company of Truth Social and Truth+, has implemented an equity incentive plan with a staggering 33 different performance metrics. These metrics are used by the board's compensation committee to determine executives' stock awards.
The plan, which has garnered attention for its opaqueness, incorporates various factors such as stock price, merger achievements, project completions, and potentially other performance and strategic milestones. However, the specific criteria and detailed thresholds have not been publicly disclosed, making these metrics quite enigmatic.
One of the key beneficiaries of this plan is CEO Devin Nunes, who joined Trump Media from his 10-term tenure as a Republican congressman in December 2021. Nunes was awarded 348,000 restricted stock units under this plan, with his stock worth approximately $5.9 million based on Friday's closing price of $17. The stock will vest in equal annual installments through May 2028, contingent on Nunes remaining with the company.
Nunes is not the only executive to receive such awards. Trump Media issued 142,000 restricted stock units each to CFO Phillip Juhan, CTO Vladimir Novachki, and General Counsel Scott Glabe. Meanwhile, Donald Trump Jr. received 2 million founder shares in New America Acquisition I Corp., while Eric Trump received 3 million.
Trump Media, listed on NASDAQ under the symbol DJT, has experienced a mix of successes and challenges. The company went public via a SPAC merger with Digital World Acquisition Corp. and has since launched an iPad app for Truth Social, entered public beta for an AI search engine, raised $2.3 billion from a private placement to fund a bitcoin treasury, filed to launch a crypto ETF, and rolled out its Truth+ streaming platform globally.
However, Trump Media has also faced financial losses. The company reported a second-quarter net loss of $20 million on $883,300 in revenue. It has also faced legal challenges, including a lawsuit against 20 media outlets, including Forbes, for reporting on its financial results while still a private company. The case is ongoing.
Moreover, Eric Swider, another Trump Media board member, launched another SPAC in March, aiming to acquire a firm in the cryptocurrency and blockchain, data security, and dual-use technology sectors.
The equity incentive plan has faced scrutiny for its lack of transparency and accountability, particularly given Trump Media’s financial losses and investments in high-risk assets like crypto. As the company continues to navigate this complex landscape, the specifics of its equity incentive plan remain a topic of interest for investors and observers alike.
[1] Forbes, "The Tech Mogul Behind Trump's Truth Social Used To Own Porn Domains" [2] Forbes, "Trump Media Board Member Who Led SPAC Merger Sells Nearly All His Shares" [3] Forbes, "When It Comes To Truth Social, Republicans In Congress Aren't Buying What Trump's Selling"
- The intricate equity incentive plan at Trump Media, a business entity known for its involvement in tech, finance, and media, includes metrics such as stock price, mergers, projects, and strategic milestones. However, the precise criteria and thresholds remain undisclosed, fostering a sense of mystery.
- Executives like Devin Nunes, CEO of Trump Media, have been awarded stock under this plan, with Nunes holding approximately $5.9 million worth of stock based on the current market price. As Nunes remains with the company, his stock continues to vest on an annual basis, highlighting the integration of business, technology, and finance in Trump Media's operations.
