Lucid CEO Got Half of $566 Million Award Before Shares Fell 67%

A short-lived surge in Lucid Group Inc.’s share price last year allowed Chief Executive Officer Peter Rawlinson to collect more than $260 million in performance-based awards.

Shares of the electric carmarker, founded in 2007, have since plunged by two-thirds as it wrestles with supply chain issues while attempting to scale up production.

Peter Rawlinson

Photographer: David Paul Morris/Bloomberg

The early payout to Rawlinson, a former top designer of Tesla Inc.’s Model S, illustrates a challenge that many corporate boards face in an era of volatile stock prices: How to incentivize executives to deliver long-term gains while not rewarding them for unsustained spurts in market value. ...