The recent merger that resulted in Trump Media’s shares being publicly traded is proving to be advantageous for top executives and other insiders at the company, notably former President Donald Trump. Despite reporting a net loss of $58 million last year on revenue of $4.1 million, Trump Media’s corporate filings reveal detailed information on salaries, retention bonuses, and stock allocations for CEO Devin Nunes and other key figures.
With Trump himself holding the majority stake of nearly 58% in the company, owning 78.75 million shares, the financial rewards have been limited to a select few individuals closely associated with the former president. After going public on the Nasdaq under the ticker DJT following a merger with Digital World Acquisition Corp, Trump Media’s stock closed at $37.17 on Monday.
Notably, Trump could potentially receive an additional 36 million shares over the next three years if certain stock price benchmarks are met. The method of issuing promissory notes to convert into stock for executives, as disclosed in the SEC filing, has raised eyebrows among experts in the field.
Despite the high valuation of Trump Media’s stock, concerns linger regarding the company’s revenue and user base in comparison to other social media giants. Short sellers have expressed interest in betting against the stock, despite the hurdles of limited shares available for borrowing.
The compensation packages for top executives, including Nunes, Juhan, and Northwall, have raised questions about the allocation of stock and bonuses, particularly in relation to their original employment agreements. The company’s plan to negotiate new employment agreements with these executives further underscores the evolving dynamics within Trump Media.
Overall, the financial intricacies surrounding Trump Media’s stock and executive compensation remain a topic of interest and scrutiny, as the company navigates its path as a publicly traded entity.