Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 48

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 48
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. Since REE’s initial public listing in July 2021, neither Mr. Barel or Mr. Sardes have received a compensation package with respect to the services that each provides to the Company, aside from annual grants of Class A Ordinary Shares received in connection with service on our board of directors. If either Mr. Barel or Mr. Sardes were to discontinue his service to REE for any reason, including due to a lack of compensation for services rendered to REE, or if the reputation of Mr. Barel or Mr. Sardes is adversely impacted by personal actions or omissions or other events within or outside either’s control, it would have a significant material adverse effect on our business, product development, and technology.

REE’s success depends, in part, on its ability to attract and recruit key employees and hire qualified employees and management.

REE’s success depends, in part, on its ability to retain its key personnel. The unexpected loss of or failure to retain one or more of its key employees could affect its business. REE’s success also depends, in part, on its continuing ability to identify, hire, attract, train and develop other highly qualified personnel. Because REE’s products are based on different technology than traditional internal combustion engine vehicles, including through the use of proprietary software driving control, individuals with sufficient training in technology, engineering, coding, or EVs (if applicable) may not be available, and as a result, REE will need to expend significant time and expense training the employees it hires. Competition for individuals with experience designing, manufacturing and/or servicing this technology and vehicles incorporating this technology, including EVs or their related technology, parts and products is intense, and REE may not be able to attract, integrate, train, motivate or retain additional highly qualified personnel in the future. In addition, sustained declines in our share price or lower share performance relative to competitors could negatively impact REE’s appeal as an employer, harm employee morale, increase employee turnover and/or reduce the retention value of REE’s share-based compensation. The

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failure to attract, integrate, train, motivate and retain these additional employees could materially adversely harm its business and prospects.

REE’s business may be adversely impacted by the labor and union activities of its own employees, as well of those of any of its potential affiliates, business partners, suppliers, or otherwise related entities.

Although none of REE’s employees are currently represented by a labor union, it is common throughout the automobile industry