In a recent filing with the Securities and Exchange Commission, Faraday Future Intelligent Electric Inc (NASDAQ:FFIE). announced significant changes in its executive team, including the appointment of a new Chief Financial Officer (CFO) and the resignation of the interim CFO.
On September 15, 2024, Jonathan Maroko resigned from his role as interim CFO, effective September 20. The company plans to enter into a consulting agreement with Maroko for continued services in a reduced capacity, alongside a customary separation agreement.
Subsequently, the company's Board of Directors appointed Koti Meka as the new CFO, effective September 23. Meka, 55, has been with Faraday Future since February 2016, holding various financial positions. His previous role was Acting Head of Finance Operations since November 2023.
Meka's employment agreement includes an initial annual base salary of $300,000, which will increase to $350,000 after a six-month probationary period. However, due to company-wide cost-cutting measures, he will initially receive a reduced salary of $200,000. His bonus eligibility starts at $150,000 annually, rising to $200,000 post-probation.
Furthermore, Meka is slated to receive equity incentives in the form of restricted stock units (RSUs) and performance stock units (PSUs) linked to company performance milestones. These include escalating RSU grants from $100,000 to $500,000 in grant date fair value over five years and PSUs with a target value of $1,000,000 based on achieving specific company milestones.
The company also announced that Hong Rao would no longer be designated as an "officer" under Section 16 of the Securities Exchange Act, though he continues as Vice President, I.A.I. of the company.
In other recent news, Faraday Future Intelligent Electric Inc. has reached a settlement in principle regarding multiple shareholder derivative lawsuits, pending approval by the United States District Court for the Central District of California. The settlement aims to resolve disputes without further litigation, which could potentially impact the company's financial condition and operations.
In parallel with the lawsuit settlement, Faraday Future has implemented a series of significant corporate changes, including a 1-for-40 reverse stock split and revisions to its executive compensation packages.
The company has also reported significant financial developments, including a revenue of $0.8 million and a net loss of $432 million for fiscal year 2023, marking a decrease from the previous year's loss of $602 million. Faraday Future managed to raise approximately $300 million through convertible notes and other financing methods. The company has also modified its debt agreements to ease cash obligations and expanded its authorized common stock from 463.3 million to 4.17 billion shares.
In addition to these developments, Faraday Future has resumed its Start of Delivery Second Phase with the delivery of the latest FF 91 2.0 model. There has also been a shift in the board of directors with the resignation of Li Han, who is expected to continue contributing in an advisory capacity.
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