Trump Media has awarded 25,946 stock shares each to six directors, including Kash Patel, Donald Trump Jr., and Linda McMahon. The shares have a paper value of nearly $195,000 as of Tuesday's closing trade, with the DJT stock closing at $30.04 per share. The award was granted as consideration for services provided from late March to December 25. Although Trump Media did not respond to CNBC’s request for comment, these stock awards mark a significant move in the company's strategic operations.
The awarded shares are restricted stock units (RSUs) that will vest in installments over time. Twenty-five percent of the RSUs vested immediately, allowing recipients to sell them at any time. The remaining 75% will vest in nine quarterly installments over the next two years, beginning March 25. This structure ensures a gradual release of shares to directors, aligning with long-term company goals.
Trump Media, known for operating the Truth Social app, is expanding into financial services. The company is navigating strategic growth while managing shareholder interests. The paper value of the gifted DJT shares amounts to more than $779,400, reflecting a significant financial commitment by the company.
Following the presidential election, former President Donald Trump transferred his majority stake in Trump Media to his revocable trust. He remains the sole beneficiary of this trust with Donald Trump Jr. as its only trustee. This transfer reflects the ongoing restructuring of Trump's financial interests post-presidency.
The shares awarded come with restrictions on when they can be sold, ensuring that directors maintain alignment with the company's long-term vision. The move underscores a strategic approach to compensating board members while safeguarding company interests.