Revolut CEO ‘could get multibillion-dollar windfall if its value passes $150bn'
Revolut's chief executive and founder Nik Storonsky could be in line for a multibillion-dollar fortune after he reportedly negotiated an Elon Musk-style deal that hinges on him pushing the fintech company's valuation past $150bn (£112bn).
The former Lehman Brothers trader, who established Revolut in 2015, is said to have secured a lucrative deal that hinges on the company nearly tripling in value, having last been estimated at $45bn.
The deal, which would pay out in stages, would offer Storonsky additional shares in Revolut that could eventually be equal to a further 10% stake in the online banking and finance firm.
The Financial Times reported that the deal was arranged in the lead-up to Revolut's bumper funding round in 2021, which secured its position as the most valuable UK fintech company on record at $33bn. It is now the most valuable private fintech company in Europe.
Revolut's latest annual report revealed that Storonsky already owns more than 25% of the business through direct and indirect shareholdings, after a reorganisation of its ownership structure. Storonsky was previously listed as a person of significant control, but no individual was listed as owning more than a quarter of the company.
The arrangement is said to echo a pay deal set up for Tesla founder Musk in 2017, which offered Musk 12 different tranches of stock options if the electric car manufacturer hit certain financial and market targets. While the deal passed in shareholder vote in 2018, it faced opposition from prominent investors including Norway's sovereign wealth fund and the California state teachers' retirement system.
One Tesla investor has since taken Musk to court over the deal, claiming the board had been misled and the package was unfair. A judge ruled last December that Musk was not entitled to receive the $56bn compensation package.
Revolut declined to comment on Storonsky's pay arrangement.
The fintech company originally launched as a pre-paid card focused on free currency exchange for customers. It has since grown to more than 10,000 staff, serving customers in more than 36 countries, with more than 50 products and services. As well as money transfers, it offers home rentals, buy now, pay later credit, wage advance, e-sims for mobile data plans and crypto trading.
Its annual report in April showed Revolut more than doubled its annual profits in 2024, jumping nearly 150% to £1bn, thanks to a rise in subscriptions, and revenues from its wealth and crypto trading divisions.
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Investors are waiting for Revolut to launch its much-anticipated stock market flotation. UK politicians and City bankers are desperate to convince Storonsky that London should host Revolut's primary listing.
Revolut finally secured a UK banking licence, with restrictions, in 2024 after a rare three-year wait. The challenge, in part, was convincing regulators that Revolut had addressed a number of accounting issues and EU regulatory breaches, as well as reputational concerns, including an aggressive corporate culture.
The UK's Financial Conduct Authority also reportedly investigated the business in 2016 after a whistleblower claimed it was failing to conduct adequate money-laundering checks or to properly flag suspect payments. That investigation was closed in 2017.
The fintech company is hoping to gain full approval from UK regulators this year.
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