Why Indie Semiconductor stock is down nearly 9% today

Indie Semiconductor (IND -8.92%) stocks were stuck on the slow track as the shortened week of stock trading began on Tuesday. On news that top executives at the maker of driver-assistance chips were subject to severe pay restrictions, investors aggressively dumped the company. Its shares ended the day nearly 9% lower in price, a much steeper decline than the bell’s 2.1% slide. S&P 500 index.

Slimmer salaries for executives

Indie revealed in a regulatory filing that many of its C-suite residents and founders will accept new, microscopic base pay packages. CFO Thomas Schiller and two unnamed co-founders are now to receive a base salary of $1 a year, a move the company said was “at the initiation and request” of those individuals.

Base pay for Raja Bal, the chief accounting officer who is also listed as acting chief financial officer, and unnamed fellow top managers will take a less drastic cut. Their annual wages are to be cut by 20%, although this is temporary and only in effect from September 1 to March 31, 2025.

Base salaries are the bases of an executive’s salary. Almost always with publicly traded companies, such individuals are eligible for awards in the form of cash, stock, or both. These bonuses are usually tied to individual and/or company-wide performance.

Defense mode

The news didn’t come as a total surprise, as India battened down the hatches on a big slowdown in electric vehicles (EVs) from 2024. Late last month, it launched its workforce reduction plan that will try to “improve operational efficiency while investing in key growth areas of the business.” About 50 indie workers were affected by the move, the company said.