Wheels Up CFO/Interim CEO Gets Salary And Bonus Increases

Just as financial markets closed yesterday (July 3), Wheels Up filed an amendment to its recent 8-K filing with the U.S. Securities and Exchange Commission. Yesterday’s 8-K/A filing revealed that Chief Financial Officer and interim CEO Todd Smith will receive a $150,000 raise in his annual salary. According to the text of the amended filing: “This Amendment to the Initial Form 8-K is being filed to report that on July 3, 2023, the Compensation Committee approved changes to Mr. Smith’s compensation package in recognition of his expanded duties as Interim Chief Executive Officer and principal executive officer.” Smith took on the role of interim CEO in May, replacing Wheels Up founder and chairman Kenny Dichter, who retains a seat on the board of directors.

In addition to his increased salary, Smith’s annual bonus target increased during his tenure as interim CEO to 150 percent of his annual salary from 100 percent “to be paid in a lump sum at the same time and in the same manner as regular annual bonuses are distributed to other similarly situated senior executives of the Company.”

This amended filing comes a week after Wheels Up board member Ravi Thakran was awarded $648,000 annual compensation, plus 50 hours’ flight time in Wheels Up Beech King Air turboprops, according to the website Private Jet Card Comparisons. The website earlier reported that, according to Wheels Up’s 2023 first-quarter financial report last May, though revenue increased $26 million year-over-year to $352 million, net losses increased $12 million year-over-year to $101 million; adjusted EBITDA (earnings before interest taxes, depreciation and amortization) was flat year-over-year with a loss of $49 million; and cash and cash equivalents fell from $586 million to $363 million.

The company, which has been plagued by falling stock prices, rumors of bankruptcy and a series of lawsuits filed by shareowners, is expected to file its second-quarter financial report in late July or early August.