General Motors’ autonomous subsidiary Cruise has suspended its internal employee share program.
The firm plans to revaluate the business after a pedestrian accident, which led it to pause robotaxi services last month.
CEO Kyle Vogt conveyed this decision to employees in an email.
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The company launched the employee share program in March 2022 as a competitive alternative to stock options for attracting top tech talent.
It involves quarterly offers to sell shares based on an external valuation.
However, Cruise faced recent troubles, including removing hundreds of robot taxis from service and delays in commercialization plans.
These have prompted the company to reevaluate its compensation strategies.
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GM, Cruise’s parent, said it’s committed to Cruise and the advancement of autonomous driving technology.
Cruise said it’s is collaborating with GM to explore alternative ways of providing competitive compensation packages for employees.
The company is considering financial incentives to retain key technical talent in the face of evolving industry dynamics and recent operational setbacks.
CEO Mary Barra has emphasized Cruise’s integral role in GM’s advanced technology strategy, setting ambitious revenue targets for the subsidiary.
