Faraday Future rewards CEO with raises despite delivering only 13 cars

Faraday Future has awarded significant raises and bonuses to its CEO Matthias Aydt and founder Jia Yueting, despite the company delivering only 13 cars in its decade-long existence. Aydt's salary will increase from $400,000 to $700,000, while Yueting's will rise from $450,000 to $680,000. Both executives will also receive substantial bonuses and stock grants, even as the company struggles financially, finishing the second quarter of 2022 with just $793,000 in unrestricted cash. The raises come at a time when Faraday Future has laid off or furloughed many employees and is under investigation by the Securities and Exchange Commission. The company has faced accusations of faking sales, which it disputes, but it has acknowledged whistleblower claims. The financial strain has led to drastic salary reductions for remaining employees, and the company nearly faced eviction from its Los Angeles headquarters earlier this year. Despite these challenges, the raises for Aydt and Yueting are conditional. They will initially receive prorated salaries and must invest a portion of their earnings into company shares. The full raises will only be granted if the company restores salaries for all employees. The one-time bonuses will be distributed in installments, with specific conditions tied to future funding rounds. This decision to reward top executives amidst financial turmoil raises questions about corporate governance and priorities, especially in a company that has struggled to establish a foothold in the electric vehicle market. The situation reflects broader issues within the company as it seeks to navigate its financial difficulties and regain stability.