On April 2, 2021, FTX Financial Inc, a Canadian-based financial services company, filed a statement of executive compensation for former Co-CEO Sam Trabucco. The filing revealed that in December 2020, the company provided Trabucco with the purchase of a yacht valued at $5 million.
The filing provided additional details about the yacht purchase, such as Trabucco’s reception of ownership of the vessel and various expenses related to the purchase, including insurance, maintenance costs, and docking fees. The filing noted that the purchase of the yacht was made in order to “maintain the professional image of Mr. Trabucco and the company.”
The purchase was approved by the board of directors prior to Trabucco’s resignation as Co-CEO in February 2021. While Trabucco will remain an advisor to the company under a part-time consulting role, he will no longer be eligible for annual compensation or benefits. However, this new filing states that Trabucco will retain ownership of the yacht.
The company has yet to make a statement regarding the yacht purchase. However, the filing has sparked controversy among shareholders, who believe the purchase of such an extravagant item is an unnecessary expense that could have been avoided. Shareholders have argued that the money could have been used to fund social initiatives, benefit employees, or bolster the company’s financial standing.