General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDonald Trump nabs additional $1.2 billion 'earnout' bonus from DJT stock
Donald Trump nabs additional $1.2 billion 'earnout' bonus from DJT stock (Yahoo! Finance)According to a regulatory filing, Trump is entitled to an additional 36 million shares if the company's share price trades above $17.50 "for twenty out of any thirty trading days" over the next three years.
Trump secured his "earnout" bonus at the end of Tuesday's trading session, with the stock trading around $33 a share at the close.
https://finance.yahoo.com/news/donald-trump-nabs-additional-12-billion-earnout-bonus-from-djt-stock-191638928.html
apnu
(8,759 posts)The stock has to be over $17.50 for any 20 days out of any 30 days over the next 3 years???
Who thinks this weak stuff up? This is like the rich slapping themselves on the back for managing to breathe?
Irish_Dem
(47,567 posts)FBaggins
(26,778 posts)Earnouts are added to deals when theres a disagreement over the value of a company. The deal can still get done by setting the transaction at the lower price and committing to an additional payment if market action proves that the higher value was the correct one.
In this case, however, it probably wont have much impact on Trump himself. Hell own a larger percentage of the company, but the earnout will increase the number of shares without changing the value of the company (thus diluting the value of each share)
Johonny
(20,924 posts)Issued 😀
keithbvadu2
(36,988 posts)Rigged game!
former9thward
(32,110 posts)All this was known before TS went public. No one forced anyone to buy shares.
Blue Owl
(50,535 posts)And tRump is the expert at failing upwards