Luxury electric vehicle manufacturer Lucid Group Inc LCID, announced the approval of a $6 million cash bonus for its CEO, Peter Rawlinson, igniting a firestorm of criticism from none other than renowned entrepreneur Elon Musk.
What’s the Buzz: In a filing with the U.S. Securities and Exchange Commission, Lucid justified the bonus, attributing it to the CEO’s role in unveiling the Lucid Gravity SUV at the Los Angeles Auto Show in November. This SUV, the company’s second vehicle after its Air sedan, was hailed to be a significant milestone by the Lucid board, deserving of substantial recognition.
Musk was quick to react, venting his disapproval on X, stating, “His comp is inversely proportionate to performance!” This succinctly captured Musk’s derision for what he perceived as an exorbitant reward for what he views as lackluster performance.
Rawlinson vs. Musk: This is not the first time that Musk has taken aim at Rawlinson’s compensation. Back in September, he cautioned, “Beware any company where leadership compensation is not linked to performance,” with regards to Rawlinson’s 2022 pay package.
It’s worth noting that according to the Equilar CEO Compensation Survey, Rawlinson’s total compensation hit $379 million in 2022, dwarfing the packages of other industry titans such as Mary Barra, CEO of General Motors Co, and James Farley, CEO of Ford Motor Co.
Prior to leading Lucid, Rawlinson served as the chief engineer for Tesla‘s Model S, showcasing a deep-rooted connection to both Musk and the electric vehicle industry.
Stock Movement: Despite the bonus controversy, Lucid shares closed up 5.2% on Thursday, but have witnessed a notable 65.9% decline over the past year, as reported by data from Benzinga Pro.
Photo by Gage Skidmore on Flickr
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