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Volta Plunges After Founders of EV-Charging Company Resign

Volta Stock Plunges After Founders of EV Charging Company Resign

Volta Inc. dropped sharply after the electric-vehicle charging company announced the abrupt departures of two top executives, both of them founders of the firm.

The resignations of Chief Executive Officer Scott Mercer and President Chris Wendel came a week after the San Francisco-based firm postponed reporting its latest quarterly earnings, although it was unclear if there was any connection between the events. Mercer will continue in the CEO role for a transition period as the company’s board searches for a replacement.

A company spokeswoman didn’t immediately return a message seeking comment.

Volta fell 18% to $3.37 on Monday, after hitting an all-time low earlier in the day. The company deploys charging stations equipped with large video displays for advertising in store parking lots. Volta went public last year through a merger with a special purpose acquisition company.

Just last month, the board’s compensation committee awarded Mercer a $500,000 cash bonus for 2021 and approved a 2022 base salary of equal size for him, according to a government filing. Wendel was awarded a $450,000 cash bonus for 2021 and a $450,000 base salary for 2022.

Volta said it’s committed to keeping the CEO and board chair roles separate going forward. The board also named independent directors Vince Cubbage and Kathy Savitt as its co-chairs.

Craig Irwin, a senior analyst with Roth Capital Partners, said Volta’s board may have decided the company needs new leaders who can better sell investors on its potential. Volta’s stock has been sliding for months and has recently under-performed other charging companies including ChargePoint Holdings Inc. and EVgo Inc.

“With the lack of success on this investor-relations front, I’m not surprised the board is saying ‘Hey guys, it’s time for a new team,’” Irwin said. 

©2022 Bloomberg L.P.