3 ms·

Nobody informed is claiming that it's illegal. Even if it's not financially the worst thing, it's a bad look. The CEO's image is important. Already the stock

Nobody informed is claiming that it's illegal. Even if it's not financially the worst thing, it's a bad look. The CEO's image is important. Already the stock price has tanked likely in part from these revelations. Obviously, too late for canoo, but if you're running a startup you can learn from his mistakes. Honestly at this point the reputational damage is enough, that the CEO should probably resign, if for no other reason to boost market confidence in the company and raise the value of his own shares.

throwawaymaths 3y ago
I guess the CEO could agree to suspend the contract with his other company until canoo is profitable, and offer to return the 3.4 million, that would be a very nice voluntary move to restore faith in his leadership.
randycupertino 3y ago
How he set it up some he's leasing the jet from his own private family trust LLC fund sounds so sketchy, it reminds me of the WeWork self-dealing by Adam Neumann. > Under a deal reached in November 2020, Canoo reimburses Aquila Family Ventures, an entity owned by the CEO, for use of an aircraft. In 2023, Canoo spent $1.7 million on this reimbursement — that’s double the amount of revenue it generated. Canoo paid Aquila Family Ventures $1.3 million in 2022 and $1.8 million in 2021 for use of the aircraft. > Separately, Canoo also paid Aquila Family Ventures $1.7 million in 2023, $1.1 million in 2022 and $500,000 in 2021 for shared services support in its Justin, Texas, corporate office facility, according to regulatory filings. sound familiar? > The 11-story office building at 88 University Place was leased to WeWork and co-owned by Neumann, the company's co-founder and CEO. It was one of many buildings that WeWork leased from Neumann. Critics called the leases a conflict of interest for WeWork and an example of self-dealing by its charismatic leader.

throwawaymaths 3y ago

I guess the CEO could agree to suspend the contract with his other company until canoo is profitable, and offer to return the 3.4 million, that would be a very nice voluntary move to restore faith in his leadership.

randycupertino 3y ago

How he set it up some he's leasing the jet from his own private family trust LLC fund sounds so sketchy, it reminds me of the WeWork self-dealing by Adam Neumann. > Under a deal reached in November 2020, Canoo reimburses Aquila Family Ventures, an entity owned by the CEO, for use of an aircraft. In 2023, Canoo spent $1.7 million on this reimbursement — that’s double the amount of revenue it generated. Canoo paid Aquila Family Ventures $1.3 million in 2022 and $1.8 million in 2021 for use of the aircraft. > Separately, Canoo also paid Aquila Family Ventures $1.7 million in 2023, $1.1 million in 2022 and $500,000 in 2021 for shared services support in its Justin, Texas, corporate office facility, according to regulatory filings. sound familiar? > The 11-story office building at 88 University Place was leased to WeWork and co-owned by Neumann, the company's co-founder and CEO. It was one of many buildings that WeWork leased from Neumann. Critics called the leases a conflict of interest for WeWork and an example of self-dealing by its charismatic leader.