Trump Media has granted stock shares to six board members, including notable figures tied to former President Donald Trump, as revealed in recent Securities and Exchange Commission (SEC) filings. This stock award, which was granted as compensation for services rendered from late March through December 25, includes significant recipients such as Kash Patel, Trump's nominee for FBI director, and Donald Trump Jr.
The stock awards were publicly disclosed shortly after Patel's Senate hearing regarding his nomination to lead the FBI. Each of the six board members received 25,946 restricted stock units (RSUs), with Patel, Donald Trump Jr., and Linda McMahon—who is also nominated for the position of Education Secretary—being prominent figures among them. The announcement has raised eyebrows in political and financial circles, particularly given the timing of the award.
According to the filings, 25% of the awarded RSUs, amounting to approximately 6,487 shares per director, immediately vested. This vesting allows them to sell their shares at any time. The shares were valued at $31.50 each at the time of the award, equating to a total paper value of over $779,400 for the shares awarded to each director. Trump Media closed trading at $30.04 per share on that day.
The remaining 75% of the RSUs will vest in three quarterly installments over two years starting March 25, which may create further financial opportunities for these board members. In addition to Patel and Trump Jr., other directors including former U.S. trade representative Robert Lighthizer and board members Eric Swider and Kyle Green also received the same number of shares at no cost.
It is noteworthy that Donald Trump is the sole beneficiary of the trust associated with Trump Media, with his son serving as its only trustee. This structure raises questions about potential conflicts of interest and the intertwining of business and political aspirations within Trump's circle.
Trump Media did not respond to CNBC's request for comment regarding the stock awards. However, this move has sparked discussions about the implications for both corporate governance and political ethics, especially in light of ongoing scrutiny surrounding Trump's business dealings.
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