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Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On February 1, 2022, Faraday Future Intelligent Electric Inc. (the “Company”) filed a Current Report on Form 8-K disclosing that a special committee of independent directors of the Company (the “Special Committee”) had completed a previously announced independent investigation into allegations of inaccurate Company disclosures. The Special Committee recommended that, among other things, the Company continue certain additional investigative and remedial work under the direction of the Executive Chairperson and report to the Audit Committee of the Company’s Board of Directors (the “Board”), including regarding the Company’s disclosures with respect to related party transactions. The additional investigative and remedial work in connection with the independent investigation has now been completed and on April 12, 2022, the Board approved certain additional remedial actions, effective immediately:
•Yueting (YT) Jia, the Company’s founder, will continue in his position as Chief Product & User Ecosystem Officer of the Company and will continue to report to the Executive Chairperson. Mr. Jia’s role will be limited to focusing on (a) Product and Mobility Ecosystem and (b) Internet, Artificial Intelligence, and Advanced R&D technology, and he will no longer be an executive officer;
•Matthias Aydt, Senior Vice President, Business Development and Product Definition and a member of the Board, has been placed on probation as an executive officer for a six-month period effective immediately. During his period, he will remain as a non-independent member of the Board; and
•Certain other disciplinary actions and terminations of employment with respect to other Company employees (none of whom is an executive officer).
The foregoing remedial actions were taken for multiple reasons including but not limited to such persons’ (1) failure to fully disclose to the Company their relationships with certain related parties and affiliated entities in connection with the Company’s July 2021 business combination with Property Solutions Acquisition Corp.; (2) failure to fully disclose similar, potentially relevant information to individuals involved in the preparation of the Company’s periodic SEC filings; and (3) lack of cooperation and withholding of potentially relevant information in connection with the Special Committee investigation.
On April 10, 2022, Jiawei (Jerry) Wang, the Company’s Vice President, Global Capital Markets, who had been suspended without pay since January 31, 2022, notified the Board of his decision to resign from the Company.