In a recent merger that led to Trump Media’s shares becoming publicly traded, top executives and insiders within the company, which owns the Truth Social app used by former President Donald Trump, are seeing big financial rewards. Despite reporting a net loss of $58 million last year on revenue of $4.1 million, CEO Devin Nunes and other executives are receiving lucrative salaries, retention bonuses, and stock allocations. Trump himself is the largest shareholder, with 78.75 million shares giving him nearly 58% of the company’s common stock. The group of financially rewarded individuals includes the CFO, COO, and others close to Trump.
After the merger with Digital World Acquisition Corp, Trump Media began trading on the Nasdaq Stock Market under the ticker DJT. Trump has the opportunity to receive an additional 36 million earnout shares over the next three years, subject to certain stock price benchmarks. These benchmarks are currently below the trading price, which closed at $37.17 per share on Monday. The details of the executives receiving stock through promissory notes were disclosed in an SEC filing, but the specific reasons behind issuing these notes remain unclear.
Despite the stock price rising after public trading commenced, some experts believe the valuation of Trump Media remains high considering its modest revenue and user numbers. The executives received fewer shares than the restricted stock units allocated to them in their original employment agreements. However, the original RSU grants were eliminated after the company issued promissory notes. The trio of named executives are also set to receive retention bonuses and are in the process of negotiating new employment agreements.
Board members and former Trump administration officials, such as Kash Patel and Dan Scavino, have also received compensation from Trump Media. Promissory notes were issued to certain individuals, with details of the arrangements disclosed in SEC filings. The filing also outlines plans to give retention bonuses to other unnamed executives, aside from those identified as named executive officers. The biggest shareholders in Trump Media, apart from Trump himself, are two corporate entities currently involved in legal battles with the company.
ARC Global Investments II LLC and United Atlantic Ventures are being sued by Trump Media over disputes regarding shares and ownership stakes. ARC Global, the former sponsor of DWAC, and UAV, a partnership involved in the inception of Trump Media, are at odds over ownership percentages. Legal battles are ongoing between these entities, with claims and counterclaims aimed at resolving ownership and stake disputes. These lawsuits add complexity to the financial and ownership structure of Trump Media as it navigates its new status as a publicly traded company.
