Tump Media executives are receiving huge financial gains despite the company’s ever-declining stock price.
Securities and Exchange Committee (SEC) filings released this month show us how company executives are compensated in salaries and bills.
What is a promissory note?
A promissory note is a cross between a promissory note and a loan agreement. It is a legally binding financial instrument that guarantees the holder a sum based on an agreement between two parties.
In the case of Trump Media, company executives were issued promissory notes in the amount of $6.25 million.
This is broken down into $1.15 million for CEO Devin Nunes, $4.9 million for Chief Financial Officer Phillip Juhan and $200,000 for Chief Operating Officer Andrew Northwall.
Trump Media shares continue to fall
Trump Media merged with Digital World Acquisition Corp on March 26 this year and saw the company’s shares hit a high of around $80.
Since then stocks have been in a steady free fall with Monday’s closing bell seeing shares at $37.17 for the stock that bears the former president’s initials, DJT.
Thus, in the span of two weeks of trading, the shares were reduced to 55% of the original limit of $80 and fell 12% on Friday and a further 10% this week.
This is a worrying trend for the Republican presidential hopeful as the company reported a net loss of $58 million last year on revenue of just $4.1 million. According to Nunes, the company is also funded by a base of retail investors, who he says are integral to the foundation of Trump Media.
In a recent interview with Fox News, which is part of the 8K archive on the company’s website, Nunes said: “The most amazing part of our company is the retail investors. So when we set out to do this merger, we did it. It took a while. One of the reasons is not just regulation, but we had almost 400,000 people, retail shareholders, who had invested in this company. Now guess what happened in the last two weeks, we think we added over 200,000 new retail investors. I would say there isn’t another company out there that has retail investors like these.”
The social media application Truth Social is tied to Trump Media, of which the former president is the majority shareholder. He currently holds a 58% stake in the company, which has approximately 78 million shares.
Image: ideogram.
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