Revolut chief executive Nik Storonsky is in talks over a new incentive package that would hand him a fresh block of stock if the fintech reaches a valuation of around $500bn (€433bn), a milestone that sits far above the $115bn implied by its current secondary round.
Nik Storonsky, co-founder and chief executive of Revolut, is discussing a new pay deal with investors that would boost his ownership of the company should it hit a valuation of about $500bn, according to reports. If agreed, it would be the largest incentive package of its kind in Europe.
The structure follows the blueprint of Storonsky's existing scheme, which releases shares in stages as Revolut's valuation clears pre-agreed thresholds. He is already the company's largest shareholder, with a stake of roughly 29%. The negotiations put the cap table itself at the centre of the story: rather than raising primary capital, the deal would reshape founder ownership through valuation-linked equity awards.
The talks come alongside Revolut's secondary fundraising round, which values the company at $115bn. The company has previously signalled to investors that it is targeting a $200bn valuation at a potential initial public offering. Under his current package, Storonsky has said an earlier tier would entitle him to hold about 40% of the company at a $200bn valuation; reaching that mark would unlock a further tranche and value his stake at roughly $80bn.
For context, Europe's most valuable start-up has grown to 75 million customers across 40 countries in the eleven years since it was founded in 2015. Its most recent accounts showed pre-tax profits rising 57% to £1.7bn on revenue of £4.5bn, with growth spread across its expanding product range.
Revolut secured a full UK banking licence last year after a lengthy wait, a step widely seen as central to its international ambitions. It has since gained approval for an Australian banking licence and is pursuing a similar licence in the United States. Its shareholder base includes sovereign investor Mubadala and Jared Kushner's private equity fund Affinity, among others.
Valuation-linked founder awards of this scale remain rare in Europe, though common among large American technology companies, where they are used to tie founder wealth to aggressive long-term targets. One Revolut investor described the approach as combining "meaningful investment and risk-taking with very ambitious targets." Revolut declined to comment.
No terms have been finalised, and the award is contingent on Revolut clearing valuation hurdles it has not yet reached. But the discussions crystallise the gap between the fintech's present $115bn secondary valuation and the $500bn figure now being written into founder incentives, a spread that signals how much further Revolut believes it can climb before any public listing.
Original source: Sifted — https://sifted.eu/articles/nik-storonsky-share-deal-500bn