According to recent regulatory filings, Trump Media (Nasdaq DJT) awarded thousands of shares to Kash Patel, the former FBI Director nominee for Donald Trump, Donald Trump Jr., and several members of its board.
Stock grants disclosed by the Securities and Exchange Commission on Thursday raise new concerns over financial involvements within the Trump Administration as the firm expands its ventures.
Who has received Trump Media shares and why?
According to the filings, Patel, Trump Jr. and Trump’s nominee as Education Secretary Linda McMahon each received 25,946 Trump Media & Technology Group shares (DJT).
The same number of free shares was also granted to three other members, former US Trade Representative Robert Lighthizer and Eric Swider.
The SEC document states that the shares were granted as “consideration for services” between late March, when Trump Media became public via a merger of a blank check company and Trump Media, through December 25, 2018.
Stock value of DJT and its restrictions
Trump Media closed its stock at $30.04 on the date of the award, which valued each member’s prize at $779.400.
Most of the stock awarded is subject to restrictions.
While 25% of the restricted stock units (RSUs)–approximately 6,487 shares per recipient–are vested immediately and can be sold at any time, the remaining 75% will vest in nine quarterly installments over the next two years, beginning March 25.
Timing raises conflict-of-interest concerns
Stock awards were made public only hours after Patel’s confirmation hearing before the Senate as FBI Director.
Some critics claim that Trump’s business dealings, including his ownership of Trump Media, could create conflicts of interests for his government.
Trump Media (which operates Truth Social) announced last week it was expanding its financial services division, further integrating business with politics.
Trump transferred the majority of his stake in Trump Media, which is owned by him, to a trust that he controls. Trump Jr. is the sole trustee of the trust, allowing him to maintain close control of the business.
On Friday afternoon, DJT shares were trading at around $31.50, reflecting the continued interest of investors in Trump’s business and social media empire.
The volatility of the stock and the ongoing concern about corporate governance may influence the way the market responds to the coming months.
The list below may change as new information becomes available.
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