Jet.AI Inc. (JTAI) is having quite a day. Shares rocketed 37.50% higher Thursday morning to 76 cents as the stock started trending across social media, following a Wednesday SEC filing that laid out some eye-catching details about executive compensation.
The Executive Pay Package
Here's what caught investors' attention: The company disclosed new employment agreements for Executive Chairman and interim CEO Michael Winston and interim CFO George Murnane in a Form 8-K filed late Wednesday.
Effective January 1, Winston's base salary jumps to $425,000 while Murnane's rises to $300,000. Both deals include annual increases that at least match inflation, with potential merit raises and bonuses up to 100% of their salaries.
But the real kicker? Change-of-control provisions linked to a proposed combination with flyExclusive. If that deal closes, or if either executive gets terminated without cause or resigns for good reason, they each pocket a $1.5 million cash bonus and get full vesting of their equity awards. That's the kind of downside protection that gets people talking.
The AI Infrastructure Pivot
Investors are also digesting December updates as Jet.AI shifts its focus toward AI infrastructure. Last month, the company announced plans for a joint venture with Choo Choo Express LLC to develop a 50-megawatt data-center campus in Moapa, Nevada. Management sees potential enterprise value around $500 million for that project.
Meanwhile, the company pulled a planned public offering of common stock on December 30, citing unfavorable market conditions. Translation: Nobody wanted to buy at the price they were hoping for.