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Revolut has begun paying cash bonuses to staff as part of an overhaul of its $45 billion FinTech compensation policy.
According to people familiar with the disclosure of the annual report and those familiar with the issue, London-based FinTech revised its annual performance bonus program last year with stock-based payments to staff in 2024.
The change means eligible Revolut employees will receive performance bonuses as a combination of fully fairness, or fully cash and fairness, depending on their role and seniority level, people said. Historically, all staff bonuses have been paid as share awards.
Policy changes ahead of the possibility of Revolut’s initial bumper recruitment in the coming years. Despite an overture from British officials, the company continues to support a potential list of the US NASDAQ market in place of London, the Financial Times previously reported.
Last year, Revolut solidified its position as Europe’s most valuable startup, securing a $45 billion valuation in secondary stock sales. The stock sales won roughly $500 million in pimples for more than 2,200 employees who offloaded their inventory.
The company said the new bonus scheme “reflected employee feedback,” and staff are calling for greater flexibility in FinTech’s variable compensation structure.
While senior employees are expected to receive a higher percentage of shares as part of the bonus award, lower employees will receive a higher cash component, said the person who explained the new policy.
The introduction of new cash bonuses has boosted the amount spent on wages, salaries and bonuses last year to £485 million, according to the annual report.
Meanwhile, the company distributed £179 million to employees over the same period, tripling the previous year.
“One increase in staff costs was recorded year-over-year, explaining the increase in stock-based payment fees driven by a higher company valuation, the impact of cash bonuses on timing was extended to a larger population of revolvers instead of stocks,” Revolut said in its annual report.
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This week, Revolut reported a record pre-tax profit of £1 billion, boosted by an increase in customer numbers and a surge in cryptocurrency trading.
After a long and sometimes plaguing three years of process with regulators, FinTech secured its UK banking license in July last year. This was considered a company milestone.
Revolut said: “We will continue to receive all previously equity-qualified roles as we believe employees need to own shares in the company and act like owners. The cash component aims to provide greater liquidity in response to feedback, especially to our more junior colleagues.”
