Revolut chief executive Nik Storonsky is in discussions about a new pay deal that would boost his ownership of the fintech if it hits a valuation of about $500bn.
Europe’s most valuable start-up is in talks with investors about structuring a new incentive deal for Storonsky that would award him a stock windfall if Revolut hits the new target, according to people familiar with the matter.
The pay deal followed the blueprint of Storonsky’s previous incentive scheme at Revolut, which triggers share payouts in stages when the company’s valuation surpasses certain pre-agreed thresholds, the people added. Such incentive packages are commonplace among American technology companies but are rarer in Europe.
In November Elon Musk clinched an agreement with Tesla that would entitle him to a trillion-dollar pay package if he met a series of highly ambitious growth targets. If Storonsky strikes his deal, it will be the largest of its kind in Europe. He is already Revolut’s largest shareholder with a stake of about 29 per cent.
The billionaire, who co-founded the company in 2015, explained in a Russian-language interview in December that his current incentive package would entitle him to hold about 40 per cent of the company if it reached a $200bn valuation. One Revolut investor said that they backed a programme for combining “meaningful investment and risk-taking with very ambitious targets.”
The investor added that “more companies should apply incentive structures like these.” Revolut declined to comment. The discussions come as part of Revolut’s secondary fundraising round which values the company at $115bn. The FT previously reported that Revolut had signalled to investors that it was aiming for a $200bn valuation at a potential IPO.
That would unlock an extra 10 per cent of the company for Storonsky and value his stake at about $80bn, putting him in the ranks of the world’s richest people. Revolut is also backed by major investors including Index Ventures, Balderton, DST Global and Ribbit. The UAE sovereign investor Mubadala and Jared Kushner’s private equity fund Affinity have also invested in the group.
Over the past 11 years, Revolut has grown to 75mn customers and operates in 40 countries. Last year, its pre-tax profits rose 57 per cent to £1.7bn on £4.5bn of revenue, with the increase driven by revenues from its premium services, which offer travel insurance, lower fees on currency exchange and higher interest on savings.
The group cleared a milestone in March this year when it was awarded a full UK banking licence, seen as key to its international growth, after a years-long wait. Since then, Revolut has secured approval for an Australian banking licence and is applying for a similar licence in the US.