Tump Media Executives are receiving massive financial gains despite a continuously falling share price for the company’s stock.
The corporate Securities and Exchange Committee (SEC) filings posted this month show us how executives in the company are being compensated in salary and promissory notes.
What is a promissory note?
A promissory note is a halfway house between an IOU 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, the company’s executives have been given promissory notes to the tune of $6.25 million.
This is broken down into $1.15 million for Chief Executive Officer 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 shares in the company hit a high watermark at around $80.
Since that time the shares have been in a constant freefall with the Monday closing bell recording stock at $37.17 for the shares that have the initials of the former President, DJT.
So in the space of two weeks of trading the shares have been sliced down to 55% of the original $80 dollar watermark and have seen a fall of 12% on Friday and a further 10% this week.
This is a worrying trend for the hopeful Republican Presidential candidate as the company posted a net loss of $58 million last year on revenue of just $4.1 million. The company is also funded by a retail investor base according to Nunes, which he would mention was an integral part of the bedrock of Trump Media.
In a recent Fox News interview, which is part of the 8K filing on the company website, Nunes would say “The most amazing part about our company, the retail investors. So when we went out to get this merger, we had it. It took a while. One of the reasons, not just the regulation, but we had almost 400,000 people, retail shareholders who had invested in this company. Now guess what’s happened over the last couple of weeks, we think we’ve added over 200,000 new retail investors. I would say there’s not another company out there that has retail investors like this.”
The social media application Truth Social is tethered to Trump Media, in which the former President is the majority shareholder. He currently has a 58% in the company, which accounts for around 78 million shares.
Image: Ideogram.
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