Tempe-based Carvana to hand out $35M in stocks to employees
PHOENIX — Wall Street success for Tempe-based online auto seller Carvana will be paying off for employees. CEO Ernie Garcia II said he would give $35 million in stocks to workers once they pass the one-year mark with the company.
A letter posted online at the company investors section this week laid out the plan, saying that Ernie Garcia III committed to “recognize and reward all Carvana employees who have contributed time, dedication and effort” helping Carvana reach a milestone 100,000th sale this year.
Carvana’s stock has more than tripled in the past year. Based on Monday’s stock price, the planned bonuses of 165 restricted stock units for qualifying employees would be worth more than $10,000 apiece.
“We expect the Company and investors (not just our employees) to benefit from the combination of Mr. Garcia’s contributions and the 100k Milestone Awards,” the post read, also pointing out that “Because Mr. Garcia will contribute a share for every one granted to employees as a 100k Milestone Award, the net effect is that shares outstanding will not change.”
Carvana has become known for selling used cars from enormous vending-like structures and delivering purchased vehicles to the new owners’ door.
The nine-story structure is near Loop 202 and Scottsdale Road and is one of 12 around the United States, although Tempe’s is the tallest. Other sites include Nashville, Tennessee; four cities in Texas; Washington; and Orlando, Florida.
Last year, weekly business magazine Inc. rated the car seller 34th on its annual list of the 50 fastest-growing firms in the United States.