Written by Cláudio Afonso | LinkedIn | X
The co-founder of the electric vehicle (EV) maker Fisker Inc., Henrik Fisker, has cut its salary to $1 as the startup navigates bankruptcy proceedings. Additionally, his wife and Fisker’s CFO, Geeta Gupta-Fisker, has taken the same measure.
Earlier this week, the company’s subsidiary in the UK has filed for bankruptcy, according to an email sent to owners of the Ocean SUV who were seeking a service appointment.
The salary reduction was disclosed by the Fisker‘s restructuring officer, John DiDonato, in a court filing dated July 8.
The decision aims to fund the company’s bankruptcy process and facilitate the sale of its remaining inventory, according to a TechCrunch report.
On the July 3 hearing, Linda Richenderfer, a lawyer for the U.S. Trustee’s Office, questioned DiDonato about the salaries from the CEO and CFO. DiDonato admitted to the court that while he was uncertain about the exact figures, the Fiskers’ compensation was under modification, indicating potential deferrals.
According to the publication, that cites a regulatory filing from 2023, Fisker Inc. reported paying the couple a minimum-wage salary of $62,400 each in 2022, accompanied by cash bonuses of $710,000 each. However, the specific salaries during the company’s descent into bankruptcy remain undisclosed.
Additionally, DiDonato revealed plans to defer various payments, including severance, employee healthcare benefits, and vehicle sale incentive bonuses.
Last week, Fisker began seeking permission from the Bankruptcy Court to sell the remaining 3,321 Ocean SUVs to the New York-based leasing firm American Lease.
The deal is expected to bring Fisker a total of $46.25 million, indicating an average price per vehicle of approximately $13,900.
NEVER MISS AN UPDATE
In the UK, a technician revealed that the team has been informed, “they won’t be paid until the insolvency hearing on August 21st, at which point they will be able to claim £700 ($898) per week from the government”.
The employee added that it “won’t be paid any outstanding expenses.”
Last month, a group of Fisker owners announced the formation of a non-profit association aiming to ensure continued access to parts and services for owners, as the startup filed for bankruptcy protection in Delaware.
Earlier today, the company issued a recall for 7,545 of its Ocean electric SUVs following the discovery of a potentially serious issue with the vehicle’s water pump.
The National Highway Traffic Safety Administration (NHTSA) announced that the recall affects all 2023-2024 Ocean models.
Last month, the company has halted the sales globally due to a defect with the exterior door handles that can cause them to stick and not open.
Written by Cláudio Afonso | LinkedIn | X
