Luxury EV maker Lucid Group Inc LCID, attracted attention on Thursday with the announcement of a $6 million cash bonus for its CEO Peter Rawlinson. The decision was met with heavy criticism from Tesla CEO Elon Musk who boldly stated that the incentive was not in line with performance.
What Happened: In an 8-k filing with the U.S. Securities and Exchange Commission, Lucid said that the $6 million cash bonus is to recognize the CEO’s contributions to unveiling the Lucid Gravity SUV at the Los Angeles Auto Show in November. The Gravity is the second vehicle from Lucid after its Air sedan.
Musk’s reaction was blunt and disapproving. He responded to a Tesla enthusiast’s humorous remark about purchasing Lucid shares and suing the company due to the alleged overcompensation of the CEO. Musk emphasized his discontent with the CEO’s bonus, labelling it as inversely linked to the company’s performance.
Rawlinson And Musk: Musk’s reproach of Rawlinson’s remuneration is not a new development. In September, Musk had previously warned about the dangers of corporate leadership compensation that does not align with company performance.
Notably, data from the Equilar CEO Compensation Survey underscores the magnitude of Rawlinson’s pay in comparison to other industry leaders. His total compensation reached $379 million in 2022, dwarfing the packages of other prominent CEOs, including General Motors Co‘s CEO Mary Barra. This stark disparity places Rawlinson at the center of a heated debate about executive compensation.
Rawlinson, who previously served as the chief engineer for Tesla‘s Model S, remains a prominent figure in the auto industry.
Price Action: Lucid shares closed up 5.2% on Thursday at $3.63. However, shares have dropped 65.9% over the past year, according to data from Benzinga Pro.
Photo by Gage Skidmore on Flickr
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