[Trump Media & Technology Group this week granted its directors blocks of shares currently worth just over $825,000, including to Kash Patel and Linda McMahon, two of President Donald Trump’s key nominees to serve in his administration. As part of a stock grant to members of its board, the Truth Social owner issued nearly 26,000 shares each to its six directors: Patel, McMahon, former US Trade Representative Robert Lighthizer, Eric Swider, Kyle Green and Donald Trump Jr.
Patel has been tapped for FBI director and McMahon for Department of Education secretary; both are awaiting formal confirmation. Many critics of President Trump say that his complex web of financial stakes in various properties, cryptocurrencies and his social media company could allow him to profit off his presidency and improperly curry favor with business partners who also serve his government.
Trump has taken at least one step to avoid a conflict of interest: He announced in December that he transferred his dominant stake in Trump Media to a revocable trust of which the president’s eldest son is the sole beneficiary and Trump Jr. is the sole trustee. He does not vote on company or board decisions. However, the financial relationships that potential high-profile Trump government leaders have with Trump Media – a company built on the president’s brand and a business in which the president is the effectively dominant shareholder – could add to conflict of interest concerns that have already surrounded the company and the second Trump administration.
The shares issued are restricted stock units, where 25% of the total shares they receive – about 6,500 shares each worth over $200,000 at Friday’s closing levels – could be immediately sold. The remaining 75% of shares are set to vest in quarterly installments between March 2025 and March 2027. Disclosure of the gifts came the same day that Patel was grilled in a combative Senate confirmation hearing, including about his past comments praising the rioters who attacked the US Capitol on January 6, 2021.
The company also announced this week plans to expand into financial services and potentially buy bitcoin and other cryptocurrencies. Trump Media said it plans to launch a fintech brand called Truth.Fi and to introduce investment vehicles that will focus on American growth, manufacturing, energy and the “Patriot Economy.”
Source link
