Fisker Stock Alert: CEO Slashes Salary to Cover Bankruptcy Costs

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  • Fisker (FSRNQ) CEO Henrik Fisker and COO and CFO Dr. Geeta Gupta-Fisker, each opted to receive a salary of $1 as a means of paying off the company’s business expenses.
  • The EV startup filed for bankruptcy last month after failing to find a buyer.
  • Fisker stock has been sliding this week on news of a major Fisker Ocean recall that affects about 11,000 vehicles.
Fisker stock - Fisker Stock Alert: CEO Slashes Salary to Cover Bankruptcy Costs

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Fisker (OTCMKTS:FSRNQ) CEO Henrik Fisker has cut his salary to $1 in an effort to pay off the company’s bankruptcy expenses. Fisker stock, which is traded on the over-the-counter exchange or “pink sheets,” is down more than 8% today.

In a filing submitted Tuesday, John DiDonato, Fisker’s chief restructuring officer, told the bankruptcy court that Henrik Fisker and his wife, who serves as Fisker’s CFO and COO, Dr. Geeta Gupta-Fisker, have chosen to accept a salary of $1 to continue paying off “vital business expenses” as the business liquidates its stock of vehicles.

According to DiDonato, the Fiskers had also decided to abstain from receiving severance payments and healthcare benefits.

Per a 2022 SEC filing, Fisker and Gupta-Fisker were each paid $62,400 per year, the minimum base salary for their positions. They did each receive bonuses of $710,000.

Fisker Stock Slides Following Massive Recall

While Fisker was once valued as high as $8 billion and considered a potential rival to Tesla (NASDAQ:TSLA), the company filed for Ch. 11 bankruptcy protections just last month after failing to find a buyer for the business.

Just yesterday, news broke that Fisker will recall more than 11,000 SUVs all over the world due to a faulty water pump that could result in power loss. Indeed, 11,308 Oceans were numbered in the company’s fourth recall, about 7,500 of which are located in the U.S.

“A communication failure with the cabin electric water pump can cause the high voltage battery management system (BMS) to enter limp mode, causing a loss of drive power,” said the National Highway Traffic Safety Administration (NHTSA).

This has only added to the mountain of losses for Fisker stock this year. Indeed, the stock is down 99% this year, trading at less than about 1 cent per share.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.


Article printed from InvestorPlace Media, https://investorplace.com/2024/07/fisker-stock-alert-ceo-slashes-salary-to-cover-bankruptcy-costs/.

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