Lucid Group CEO Peter Rawlinson earned more than $260 million in performance-based awards last year. Just before the EV startup’s shares plunged by two-thirds.
In March 2021, Lucid Group’s board awarded Rawlinson with about 13.8 million time-based units of stock. It will vest over four years beginning at the end of 2021, adding over 16 million performance-based stock units.
According to a filing on April 28, the entire award was valued at a whopping $556 million by the company. Peter Rawlinson’s $263 million paydays is one of the largest compensation packages paid to any executive officer in 2021. The performance-based stocks were based on the short-lived surge in the company’s share price last year. As the company increased the production of its Lucid Air EV, the shares of the automaker have plunged by more than two-thirds.
Lucid started trading publicly in July 2021. It reached a market cap of $91 billion by November. The company’s market value remained high enough over a six-month period for Rawlinson to collect four of the five tranches of performance-based units, according to the filing. Rawlinson’s newly vested performance stock was worth $263 million at April 28 closing.
Lucid CEO can still take his remaining $2.1 million performance-based units if the market cap reaches about $70.5 billion and stays there for six months. Lucid’s market cap was $29.89 billion at closing on April 29. According to Bloomberg, Lucid CEO stands to earn even more by staying in the Group in the next four years.
Lucid shares dropped almost 70 percent on Friday, closing at $18.08. Compared to their November high of $57.75. the massive decrease is due to the supply chain issue and a decrease in the production capacity for 2022.
As the company is planning to develop a second production facility in Saudi Arabia by 2025. Lucid needs more cash to fund the operations. The company raised $2 Billion in December, but according to some analytics reports, the company needs to sell more stock to raise the funds.
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