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Nik Storonsky, CEO of Revolut, lined up in a multi-billion dollar stairwell if he leads his fintech valuation to around $150 billion under the long-standing Elon Musk-style pay package.
Storonsky, which founded a $45 billion startup in 2015, has a major incentive agreement that will increase Revolut’s shares by a few percentage points if the valuation triples or more than current levels, according to those familiar with the issue.
The total amount of stock offered could be worth 10% of the company if all targets were hit, one of the people said.
However, the package is structured to pay in stages when the rating clears the setting threshold, people said.
Some likened Stoansky’s contract for the bumper pay deal that Musk negotiated with Tesla in 2018. The award has led to a long-standing legal battle for the largest award in US history.
The Storonsky deal was ahead of the company’s smash fundraising in 2021, passing a $33 billion valuation in an investment round led by SoftBank.
According to the company’s latest annual report, the direct and indirect holdings of Revolut stock exceeded 25% this April, following a restructuring of its ownership structure.
Prior to that, Storonsky was not held over 25% of the stock, but even so, Storonsky was considered a person with important control.
The Revolut scheme highlights how investors try to motivate top executives to achieve ambitious growth targets.
If Revolut reaches a $150 billion valuation, it will also offer extra-large returns to its early venture capital backers, including Index Ventures and Balderton Capital.
Storonsky led the company to a $45 billion valuation last year, when employees and early investors were allowed to cash some of their shares. He sold hundreds of millions of dollars worth of his own shares in trade, the Financial Times previously reported.
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The London-based startup has more than doubled its profits since last year, with over 550 million customers increasing the fees earned from the interest earned on card payments and deposits.
Revolut also benefited from the revival of crypto trading, earning almost four times its revenue in its asset business, consisting of stock and digital asset transactions.
Last year, FinTech received his banking license in the home market after years of process. The award from the Bank of England represents a company’s milestone, and management hopes it will help secure licenses in other markets.
The company has also started paying cash bonuses to its staff as part of its compensation policy overhaul. This is a transition from the previous system that only allowed stock bonuses. The move precedes the initial public offering for Revolut’s potential bumpers.
Revolut declined to comment.
