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Revolut’s chief executive Nik Storonsky is in line for a multibillion-dollar windfall if he steers the fintech’s valuation to about $150bn, under a long-standing Elon Musk-style pay package.
Storonsky, who founded the $45bn start-up in 2015, has an outsized incentive deal that would increase his stake in Revolut by several percentage points if the valuation more than triples from its current level, according to people familiar with the matter.
The total amount of shares on offer could be worth as much as 10 per cent of the company if all the targets are hit, one of the people said.
However, the package was structured such that it would pay out in stages when the valuation cleared set thresholds, the person said.
Some of the people likened Storonsky’s deal to the bumper pay deal that Musk negotiated with Tesla in 2018. That award, which was the largest in US history, has led to a years-long legal battle.
Storonsky’s deal predates the company’s blockbuster fundraising in 2021, in which an investment round led by SoftBank handed the company a valuation of $33bn.
The chief executive’s direct and indirect holdings in Revolut shares topped 25 per cent in April this year after a reorganisation of its ownership structure, according to the company’s latest annual report.
Before that, no one had more than 25 per cent of the shares in issue, although Storonsky was nonetheless deemed a person with significant control.
The Revolut scheme underscores how investors seek to motivate top executives to reach ambitious growth targets.
If Revolut reaches a $150bn valuation, it would also deliver outsized returns for the company’s early venture capital backers including Index Ventures and Balderton Capital.
Storonsky guided the company to its $45bn valuation last year, when employees and early investors were allowed to cash in some of their shares. He sold hundreds of millions of dollars’ worth of his own stock in the transaction, the Financial Times previously reported.
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The London-based start-up’s profits more than doubled to £1bn last year as it surpassed 50mn customers, which boosted the fees it makes from card payments and the interest it earns on deposit.
Revolut also benefited from a resurgence of crypto trading, which increased revenues nearly fourfold at its wealth business comprising stock and digital assets trading.
Last year, the fintech received a banking licence in its home market after a years-long process. The award from the Bank of England represented a milestone for the company, with executives now hoping it will help it secure licences in other markets.
The company has also begun to pay out cash bonuses to staff as part of an overhaul of its remuneration policy, a shift from a previous system that only granted bonuses in equity. The move comes ahead of a potential bumper initial public offering for Revolut.
Revolut declined to comment.
