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Henrik Fisker, CEO of electrical automotive maker, Fisker, cut his salary to $1 in an try to cowl chapter prices after submitting for Chapter 11 safety final month.
A submitting on Tuesday in chapter court docket on behalf of Fisker’s Chief Restructuring Officer John DiDonato acknowledged that Fisker and his spouse, Dr. Geeta Gupta-Fisker, (who serves as COO) had been voluntarily decreasing their wage to $1 yearly.
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The couple reportedly made the choice on July 8, following a July 3 listening to the place the pair was requested in the event that they had been nonetheless on the payroll by a lawyer for the workplace of the U.S. Trustee to verify all cost-cutting choices had been in place as chapter proceedings continued.
The submitting additionally acknowledged that Fisker would waive “sure severance funds, sure worker healthcare advantages, and automobile sale incentive bonuses” that weren’t but paid.
Fisker CEO Henrik Fisker speaks throughout their inaugural “Product Imaginative and prescient Day” (Frederic J. BROWN / AFP) (Photograph by FREDERIC J. BROWN/AFP through Getty Photos)
It’s not but clear how a lot the Fiskers had been paid earlier than lowering their salaries, although it was acknowledged in a separate SEC submitting in 2022 that they every obtained money bonuses of $710,000 and a minimal wage wage of $62,400.
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The electrical automobile firm, as soon as seen as a menace to Tesla and others, filed for chapter safety in Delaware court docket final month only one yr after delivering its first automobile, Ocean, and 6 years after its official founding.
“Like different firms within the electrical automobile trade, we’ve confronted varied market and macroeconomic headwinds which have impacted our capability to function effectively,” Fisker said in a statement on the time of its submitting. “After evaluating all choices for our enterprise, we decided that continuing with a sale of our property below Chapter 11 is essentially the most viable path ahead for the corporate.”
The corporate estimated that its property had been between $500 million and $1 billion, with liabilities between $100 million and $500 million.
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