Nikola (NASDAQ:NKLA) founder Trevor Milton agreed to forfeit up to roughly $166 million of equity as well as a two-year, $20-million consulting contract as part of his abrupt departure from the company he started. However, the EV executive gets to walk away with more than $3.1 billion in stock as part of a separation agreement reached over the weekend.
Milton, under scrutiny in recent days, agreed to give up his position and duties as executive chairman of the board as well as all other board seats on the company’s subsidiaries, according to the agreement dated Sunday. The deal strips the 39-year-old entrepreneur of any say in the company’s operations and blocks him from attempting to influence any decisions for at least three years, according to a company filing with the Securities and Exchange Commission on Monday.
Milton agreed to advise the company as an unpaid consultant on an ad hoc basis through the end of the year, but he cannot comment about the company on social media, blogs or other online platforms without legal approval from Nikola, according to the deal.
The agreement requires Milton to give up roughly 4.9 million in restricted, performance-based shares valued at $166 million as of Friday’s closing price of $34.19 a share while allowing him to walk away with more than 91.6 million shares that appear to be free of any restrictions and were worth over $3.1 billion.
NKLA shares descended 76 cents, or 2.8%, to $26.82
