INSUBCONTINENT EXCLUSIVE:
In what will be seen as a big recruiting and retention win for Cruise, employees will be offered equity in GM self-driving technology
subsidiary rather than shares of GM
The securities offering was disclosed in a recent SEC filing for GM Cruise Holdings LLC.
The filing, which also lists the initial officers
of GM Cruise Holdings LLC, is a result of SoftBank investment in Cruise earlier this year
SoftBank Vision Fund announced in May plans to invest $2.25 billion in Cruise
Once that deal closes, GM will invest another $1.1 billion.
GM Cruise Holdings LLC board of directors includes Cruise CEO and co-founder
Kyle Vogt, GM chairman and CEO Mary Barra, GM president Dan Ammann, GM general counsel Craig Glidden and GM VP of autonomous technology
Vogt, Cruise CFO Geoff Richardson and Cruise general counsel Matt Gipple are executive officers of GM Cruise Holdings.
The equity structure
gives all Cruise employees the chance to own actual shares of Cruise, not in GM
It a critical development for a company, even one flush with new capital like Cruise, that is working to deploy autonomous vehicles on a
commercial scale.
The goal was primarily to create a new equity structure so that we could recruit and retain the best talent by giving them
direct participation in potential upside in Cruise through owning actual shares in Cruise, which we didn''t have before,& Cruise CEO and
co-founder Vogt told TechCrunch.
It similar to the idea that went behind the acquisition of Argo.ai, Gartner analyst Mike Ramsey noted to
TechCrunch.
The compensation structure at companies like GM and Ford make it difficult for them to compete with the Google of the world,&
&The potential for a giant, strike-it-rich pay out from an IPO is a carrot that will attract and keep talent that is in high demand.
