The merger that resulted in Trump Media shares becoming publicly traded has proven to be beneficial for top executives and insiders, including former President Donald Trump. With a reported net loss of $58 million and revenue of $4.1 million last year, the company detailed salaries, bonuses, and stock allocations for CEO Devin Nunes and other executives. Trump, the largest shareholder, received 78.75 million shares, giving him nearly 58% of the company’s common stock. Financial rewards have been limited so far, extending to only a few individuals, such as the CFO, COO, and those close to Trump.
Trading under the ticker symbol DJT on the Nasdaq Stock Market after the merger with Digital World Acquisition Corp, Trump Media has seen some fluctuations in share price. Trump himself can potentially acquire an additional 36 million earnout shares over the next three years if certain stock price benchmarks are met. Despite these thresholds being lower than current stock prices, concerns have been raised about the awarded shares and the setup of promissory notes for executives like Nunes, Juhan, and Northwall, which were later converted into company stock.
There is speculation about the overvaluation of Trump Media’s stock given its modest revenue and user base on the Truth Social app compared to other social media giants. While the share price initially spiked post-public trading, it has since come down significantly. Despite being the most expensive U.S. stock to sell short, there is strong demand for available shares for short sale, indicating skepticism about the company’s valuation and potential. The allocation of stock and bonuses to the executives has raised questions.
While the top executives received fewer shares than originally agreed upon in their employment contracts, they were given promissory notes that were eventually converted into stock after the merger with DWAC. These executives also received retention bonuses and have new employment agreements in place, entitling them to additional equity awards. Trump Media is setting aside $1.24 million for retention bonuses for other executives, although specific details about these arrangements remain unclear from the filing.
Apart from executive compensation, the legal battles surrounding Trump Media also shed light on the company’s governance and ownership. Trump is the largest shareholder, followed by corporate entities like ARC Global Investments II LLC and United Atlantic Ventures. Legal disputes between these entities and Trump Media have further complicated the situation, with allegations of incorrect share allocations and breach of fiduciary duties. Executives and insiders at Trump Media are navigating these challenges while also focusing on building out the company’s business and maintaining the share price. Despite the uncertainties and controversies, Trump Media continues its journey in the public markets.
