Faraday Future layoffs: Jia Yueting's salary significantly increased, with bonuses

09/13 2024 495

According to Quick Technology on September 13, Faraday Future, founded by Jia Yueting, has been in operation for ten years. However, during this period, it has only delivered a total of 13 FF91 vehicles, and recently laid off or temporarily dismissed most of its employees.

Yet, at this critical juncture, Faraday Future significantly increased the salaries of Jia Yueting and CEO Matthias Aydt, and also awarded bonuses.

According to Ifeng Technology, Faraday Future stated in a regulatory filing on Wednesday that the annual salary of the company's founder, Jia Yueting, has increased from $450,000 to $680,000, representing an increase of over 50%.

He also received a one-time recognition bonus of $500,000, an annual discretionary target bonus of $816,000, and two annual stock awards totaling over $4 million in value.

Faraday Future CEO Matthias Aydt's annual salary will increase from $400,000 to $700,000, representing an even higher increase of 75%. He will also receive a one-time recognition bonus of $500,000, an annual discretionary target bonus of $700,000, and two annual stock awards totaling over $4 million in value.

However, it is essential to note that the salary increases and bonuses for both individuals are subject to conditions. They will not receive their full salaries immediately but will instead receive a prorated amount, with Jia Yueting receiving $612,000 and Aydt receiving $550,000. Furthermore, they must agree to use at least $340,000 of their salaries to purchase company stock.

They will only receive the remaining salary increases once the company resumes full salaries for all other employees. Currently, both Jia Yueting and Aydt have already received pay cuts.

Moreover, the one-time bonuses will be paid in installments. Each recipient will receive 25% of their bonus on September 30th of this year, another 25% on October 31st, and the remaining amount on September 30th, 2025, or upon the completion of a financing round exceeding $30 million, whichever comes first.

It is understood that as of the end of the second quarter of this year, Faraday Future had only $793,000 in unrestricted funds on its books. Earlier this week, the company announced that it had secured $22.5 million in new financing commitments from the Middle East, the United States, and Asia. This new investment will be provided in the form of convertible notes and warrants.

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