Thread by @meckimac

A thread about $nkla Trevor's compensation package:

While only taking a $1 per year salary, he is awarded $6M/yr in stock plus 4.8 million shares (currently worth about $222M) if a pre-established SHARE PRICE is achieved.

No business milestones are relevant, only share price!

another interesting detail is the lock period:
"...subject to continued employment during a performance period that ends on the THIRD anniversary of the Closing Date."

-> he can cash out his entire package before their first FCEV is scheduled to go into production in 2023.

The same conditions apply to the CEO and CFO of $nkla only with smaller numbers so the entire senior management can cash out before any hydrogen trucks are coming off the production assembly line.

Can anybody with better legal knowledge than me explain if the $4.8M share package is a one-time bonus or paid annually? I couldn't really tell from how it is written.

I have some interesting news about the compensation package of Nikola's senior management.
The stock price milestones have 3 levels:
$25, $40 and $55.
Shares are earned if the if the stock price is trading at or above the milestone for at least 20 consecutive trading days...

...and guess what, they've already achieved it. The stock was trading above $55 between 6/8 and 7/6 which are exactly 20 trading days. Therefore, Trevor & Co. have already achieved their milestones to be granted their full compensation package if they stay employed for 3 years.

"These shares will be delivered, free of vesting restrictions, following certification by the Board within 30 days following the final day of the Performance Period."
That's early April 2023, before any hydrogen trucks are scheduled to be delivered.

Here is the list of $NKLA management as per SEC:
- Trevor Milton: 4,859,000 shares ~$223M
- Mark Russell: 4,859,000 shares ~$223M
- Joseph Pike: 1,619,000 shares ~$74M
- Britton Worthen: 2,428,000 shares ~$111M
- Kim Brady: 2,591,000 shares ~$119M

That's a total of $750,000,000!

To summarize, the performance award package for the entire $NKLA senior management has already reached all milestones for them to cash out approximately 750 Million Dollars in Nikola shares by April 2023.

All they need to at this time is stay employed.

This must be the best paid head of HR compensation package ever: $74,000,000. $NKLA

As a comparison, this is Apple Management's compensation overview.

In the past 3 years, Tim Cook earned less than half of what Nikola's HR manager will make in 3 years if he stays employed!

I'm not going to say more but if this is not a wakeup call for $NKLA investors,what is?

As a sidenote, Trevor tweeted this after they achieved the milestones that granted him and his team the full performance package of shares currently worth ~$750 Million.
They do NOT have to create value, they just need to stay employed untill 2023! $nkla

Looking a bit deeper into the intraday prices for $NKLA on that July 6 trading day (day #20) which triggered the stock awards, we can see that the stock was only trading for the first 10 minutes at or over that critical $55 mark. It never went back above $55 until 2 days later.