LORDSTOWN — Lordstown Motors Corp. has replaced its president and brought on another senior executive in a leadership shakeup, that, according to the electric-vehicle startup, was done with narrow focus to bring its flagship truck to market and further develop its partnership with Taiwanese tech giant Foxconn.

Out as president is Rich Schmidt, who was among the first top-level executives with the company, and appointed to the job is veteran automotive executive, Edward T. Hightower, effective Nov. 29.

Wednesday’s announcement before the market opened also included the appointments of Shea Burns as senior vice president of operations and Jane Ritson-Parsons, who has been serving as chief operating officer since mid-June following the departure of the company’s founder and former CEO, to the newly created position of executive vice president, chief commercial officer.

Following the news, shares of Lordstown Motors stock pushed up slightly in trading. The stock closed Wednesday down about 2.2 percent at $5.56 per share but shot up in after-hours trading following the announcement the company had come to terms on a definitive agreement to sell its auto factory to Foxconn for $230 million.

According to the company, Burns will continue to support the launch of the Lordstown Motors’ first offering, the Endurance truck, and the implementation of an agreement in principle with Foxconn for the factory.

Burns, who previously had been advising the company as a consultant, will serve in the new role under a consulting arrangement.

Ritson-Parsons will build the company’s commercial strategy and continue to oversee several corporate functions, including sales, customer service and support, human resources, brand marketing and communications, according to Lordstown Motors.

Another reason for the moves is to strengthen the company’s engineering capabilities to develop future electric vehicles.

Hightower and Burns “bring deep automotive experience” and have “strong backgrounds in engineering, new product development, manufacturing, and launch readiness,” Lordstown Motors CEO Dan Ninivaggi said in a news release.

“These skill sets are especially important as we not only pursue the launch of the Endurance, but as we also pursue future vehicle development opportunities with Foxconn,” he said.

Lordstown Motors and Foxconn, also known as Hon Hai Precision Industries, jointly announced the definitive deal for the 6.2 million-square-foot plant and other items after the market closed Wednesday.

Already, it has been announced that California-based Fisker’s PEAR (Personal Electric Automotive Revolution) electric vehicle is intended to be made in Lordstown.

Fisker and Foxconn finalized an agreement in May to assemble the vehicle. Fisker’s CEO, Henrik Fisker, said if Foxconn and Lordstown Motors finalize the deal, it’s his intent to make the PEAR with Foxconn in Lordstown.

CONTRACT DETAILS

According to documents filed with the U.S. Securities and Exchange Commission, Hightower, 65, will be paid $625,000 per year and a yearly bonus with a target equal to 100 percent of his annual salary.

He also received an equity award of 500,000 stock options with an exercise price of $5.69 per share, 500,000 restricted stock units that will vest over three years and a $50,000 signing bonus he must repay if he is let go before Nov. 29, 2022.

In connection to Hightower’s appointment, Ninivaggi, appointed chief executive in late August, has agreed to take a cut in pay, from $750,000 per year to $675,000 per year, effective Nov. 29.

Schmidt, whose Nov. 4 resignation is effective Dec. 4, was given a raise in June to $400,000 per year. He previously earned $250,000, according to regulatory documents.

The company had no comment on his resignation.

BACKGROUNDS

Hightower has 30 years of experience in product development, engineering, manufacturing, commercial and senior executive roles between Ford, BMW and General Motors. He led GM’s $15 billion global crossovers business as the executive chief engineer and vehicle line executive. At BMW, he helped drive 5 Series sales, market share and profitability in the U.S. to record levels, according to Lordstown Motors.

He serves as managing director of Motoring Ventures LLC and has been advising Lordstown Motors in a consulting capacity.

Burns has more than 25 years of experience in the automotive industry, including previously serving as vehicle launch leader at Ford and senior director of quality and director of engineering operations at Meritor, a Michigan-based supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets.

He also led numerous launches while at Ford.

Ritson-Parsons was made Lordstown Motors’ brand officer in April and then was appointed COO with the resignations of former chief executive and founder Steve Burns and Julio Rodriguez, chief financial officer. Before coming to Lordstown Motors, she served as group executive, global brand marketing at Hasbro Inc. from 2008 to 2018, according to an SEC filing.

Investor news

Lordstown Motors Corp. will release its third quarter 2021 financial results after the market closes 4:30 p.m. today. A conference call then can be accessed via live webcast on the events page of the Lordstown Motors investors website.