Canoo’s CEO Expenses Raise Eyebrows

Electric vehicle manufacturer Canoo faced scrutiny as it emerged that the company spent double its annual revenue on its CEO’s private jet trips in the previous year. Despite never achieving profitability since going public, Canoo allocated $1.7 million for “aircraft reimbursements” for its CEO, while reporting only $886,000 in revenue for the same period.

Lavish Spending Practices

According to Canoo’s full-year earnings report, the CEO, Tony Aquila, who also serves as the company’s chairman, was reimbursed for business expenses, including air travel, either with first-class airfare or the use of his private jet. Aquila, who holds approximately 14% ownership in Canoo, received $1.3 million for air travel in 2022 alone.

Financial Challenges Amid Expansion Efforts

Despite its ambitious projects, including manufacturing passenger vehicles, delivery vans for Walmart, and crew transport vehicles for NASA, Canoo reported a staggering annual loss of $302 million. The company, headquartered in Texas, struggles to generate sufficient cash flow to sustain its operations, necessitating the need for additional fundraising.

Investor Concerns and Stock Performance

Following the disclosure of its financials, Canoo’s stock faced a significant decline, dropping by 26% after the earnings report. The departure of several executives in 2022 further added to the company’s challenges, indicating potential internal instability amidst its financial struggles.

Lack of Comment Raises Further Questions

Canoo refrained from providing a response to inquiries from Business Insider regarding its spending practices, leaving investors and industry observers questioning the company’s financial management and allocation of resources.

Historical Precedents

The case of Canoo’s CEO expenses echoes similar instances in corporate history, where excessive spending on private jets by executives drew sharp criticism from investors and the public. Notable examples include WeWork’s luxury jet purchase and former General Electric CEO Jack Immelt’s undisclosed second plane for overseas trips, both of which contributed to concerns over corporate governance and financial prudence.