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The
company said Chief Executive Officer Lyndon Rive and his
brother, Chief Technology Officer Peter Rive, had asked to have
their annual salaries reduced to $1 from $275,000, as part of
the company's cost-cutting plans.
Earlier this month, San Mateo, California-based Solar City said
it accepted Tesla Motors Inc's $2.6 billion buyout offer.
The compensation committee of the company's board of directors
agreed to reduce the salaries, SolarCity said in a regulatory
filing.
"It's a symbolic gesture, but it's appropriate," Raymond James
analyst Pavel Molchanov said.
The Rives' move comes a week after Chief Executive Officer Tom
Werner of rival solar company SunPower Corp, said he would
reduce his salary and bonus to $1 for the rest of the year as
part of a broader restructuring.
SolarCity will incur restructuring charges of about $3 million
to $5 million, mostly in the second half of this year. Most of
the spending will be on severance benefits.(http://bit.ly/2bImyom)
SolarCity did not immediately respond to requests for further
details on the restructuring plan.
Earlier this month, SolarCity cut its 2016 installation forecast
for the second time, citing lower residential bookings in the
first half. The company said late last year that it would slow
its pace of growth to focus on generating cash. Investors have
punished the company's stock, sending it down 60 percent since
December.
In a separate filing, SolarCity said it planned to issue $124
million in bonds. The bonds carry a 6.5 percent interest rate,
higher than any of SolarCity's previous offerings, and also have
a longer maturity rate of 18 months.
(Additional reporting by Sai Sachin R in Bengaluru; Editing by
David Gregorio)
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