Fisker founder cuts salary to $1 to cover bankruptcy costs

• Fisker CEO Henrik Fisker and his wife have cut their company salaries to $1.
• Fisker was once valued at $8 billion and planned to challenge Tesla.

The founder of embattled EV startup Fisker has cut his salary to $1 to help cover the company's bankruptcy costs.

In a filing submitted to bankruptcy court on Tuesday, Fisker's chief restructuring officer, John DiDonato, said Fisker CEO Henrik Fisker and his wife Dr. Geeta Gupta-Fisker — CFO and COO of the company — had "voluntarily" reduced their annual salary to $1 to continue covering "vital business expenses" as Fisker scrambles to sell off its remaining inventory.

DiDonato also said that Fisker had decided to defer certain severance payments and employee healthcare benefits.

A 2022 SEC filing stated that Fisker and Gupta-Fisker were each paid $62,400 a year, the minimum base salary under applicable law at that time — although both also received cash bonuses of $710,000.

Fisker, once valued as much as $8 billion, filed for bankruptcy last month after efforts to find a buyer for the company failed.

Founded by automotive legend Henrik Fisker, who helped design the Tesla Model S, the EV startup had ambitious plans to take on Tesla with its flagship electric SUV, the Ocean.

However, its plan to build an affordable EV by outsourcing production quickly ran into choppy waters.

Current and former workers told Business Insider that Fisker struggled with parts shortages and even had to strip parts from the CEO and CFO's cars to repair the first batch of Oceans delivered to customers.

Fisker is now attempting to sell its 3,300 unsold Oceans to Uber and Lyft vehicle provider American Leasing at an 80% discount.

Fisker did not immediately respond to a request for comment from Business Insider, made outside normal working hours.

Do you work at Fisker or own an Ocean? Get in touch with this reporter via email at tcarter@businessinsider.com.