Henrik Fisker and his wife Geeta Gupta-Fisker, has taken drastic measures amidst its Chapter 11 bankruptcy filing earlier this summer, including a significant salary sacrifice by its co-founders.
In a court filing on Tuesday, Fisker’s Chief Restructuring Officer John C. Didonato disclosed that both Henrik Fisker and Geeta Gupta-Fisker would reduce their annual salaries to just $1 each, a move aimed at preserving cash as the company navigates financial restructuring efforts.
The decision, effective from July 8, underscores the Fiskers’ commitment to maintaining operations despite severe financial challenges. Previously, the couple received annual salaries of $62,400 in 2022, supplemented by substantial bonuses totaling $710,000 each. They also hold significant ownership stakes in Fisker, with 843,843 shares each, providing them majority voting control as of March.
Fisker Inc, once employing 1,300 personnel, has slashed its workforce drastically to around 130 employees, reducing its payroll obligations to $964,000 for the upcoming week. The company is actively seeking cash influx through asset sales, including a proposed deal to sell 3,312 units of its Ocean EVs to American Lease for $46 million, equivalent to approximately $14,000 per vehicle.
Despite these efforts, Fisker faces additional financial pressures, including recent expenditures related to a vehicle recall spanning the United States, Canada, and the EU due to a water pump issue. These challenges necessitate careful financial management as the company strives to stabilize its operations.