Bird Global, the electric scooter company, recently appointed Joseph Prodan as its CFO, as stated in a recent filing with the Securities and Exchange Commission. Prodan officially assumed his role as CFO on August 30th, succeeding Michael Washinushi, who was appointed as the company’s interim CEO, as announced in a press release on Monday.
Prodan’s appointment is the latest in a series of executive leadership changes for the Miami-based electric scooter company. Bird is currently facing financial difficulties, including liquidity issues, a declining stock price, and a high cash burn.
In his role as CFO at Bird Global, Prodan will receive an annual base salary of $350,000, pro-rated for any partial year of employment, according to the company filing. He is also eligible for annual and quarterly cash performance bonuses based on goals for net revenue, adjusted EBITDA, and free cash flow. The maximum bonus amount for a single calendar year is $168,735 for 2023 and $246,084 for 2024.
Prodan takes on the financial leadership of the company as it grapples with the possibility of bankruptcy. Bird has faced challenges in sustaining both growth and ridership since going public through a special purpose acquisition company (SPAC) deal in November 2021. The company implemented cost-cutting measures, exited unprofitable markets, discontinued its retail scooter offering, and laid off 23% of its staff.
Despite these efforts, Bird reported a net loss of $44.3 million for the first fiscal quarter ending March 31, with quarterly revenue of $29.5 million. The company issued a “going concern” warning about its ability to continue operations in its first quarter earnings report, citing recurring losses and negative cash flow. As of March 31, Bird had $12.8 million in unrestricted cash and cash equivalents.
In addition to cost-cutting measures, Bird has made changes to its board and C-suite lineup in recent months. Travis VanderZanden, the Chairperson of the Board, resigned from his position in June. Shortly before Prodan’s appointment as CFO, the company terminated Shane Torchiana as CEO and appointed Michael Washinushi as interim CEO. Torchiana, who joined the company in September, will receive a cash payment of $275,000, equivalent to six months of his annual base salary, as part of his separation agreement.
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