Why Did Volta’s Stock (VLTA) Drop Today?
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Volta Inc.’s stock plummeted when the electric car charging startup revealed the unexpected retirement of two key executives, both of whom were co-founders.
The resignations of Chief Executive Officer Scott Mercer and President Chris Wendel came a week after the San Francisco-based company postponed disclosing its latest quarterly profits, but it was uncertain whether the two events were connected. Mercer will serve as CEO for a transition period while the board of directors hunts for a replacement.
A message left for a corporate spokesperson was not immediately returned.
Volta fell 18 percent to $3.37 on Monday after hitting an all-time low earlier in the day. In shop parking lots, the firm uses charging stations with enormous television screens to advertise. Last year, Volta went public after merging with a blank check company (SPAC).
According to a federal document, the board’s remuneration committee gave Mercer a $500,000 cash incentive for 2021 and authorized a basic salary of the same amount for 2022. Wendel was given a cash bonus of $450,000 for 2021 and a basic salary of $450,000 for 2022.
Volta has stated that it intends to keep the responsibilities of the CEO and board chair distinct in the future. Independent directors Vince Cubbage and Kathy Savitt were chosen as co-chairs of the board.
Volta’s board may have determined the firm needs new executives who can effectively sell investors on its potential, according to Craig Irwin, a senior analyst at Roth Capital Partners. Volta’s stock has been falling for months, underperforming rival charging businesses such as ChargePoint Holdings Inc. and EVgo Inc.