▼ Summary
– Revolut cofounder and CEO Nik Storonsky is negotiating a new share award that would increase his stake if the fintech reaches a $500 billion valuation, per the Financial Times.
– Storonsky currently owns about 29% of Revolut, and the proposed package would unlock shares in stages as the valuation climbs, similar to Elon Musk’s Tesla structure.
– The $500 billion target is over four times Revolut’s current $115 billion secondary share sale valuation, which would rank it alongside Visa and ahead of most European public companies.
– The deal would be a first for Europe, as uncapped, valuation-linked pay awards are common in the US but rare elsewhere, with Musk’s package as the reference point.
– Revolut’s recent progress—full UK and Australian banking licences, a pending US charter, 75 million customers, and a 57% rise in pre-tax profit to £1.7 billion—supports the ambition, though questions remain on fairness and board approval.
Nik Storonsky is negotiating for a significantly larger ownership position in Revolut, and he has set a strikingly high benchmark for it. The cofounder and chief executive is in discussions regarding a new share award, according to the Financial Times, one that would expand his stake should the fintech achieve a $500 billion valuation.
Storonsky currently controls roughly 29% of Revolut. The proposed package would release shares incrementally as the company’s valuation rises, a structure modeled on Elon Musk’s arrangement at Tesla. Whether this new plan supplements his existing award or replaces it remains unresolved.
The current deal is already substantial. In December, Storonsky noted it would increase his ownership to approximately 40% once the company hit a $200 billion valuation.
The headline number here is the target itself. Revolut’s latest secondary share sale priced the company at $115 billion, or $2,017 per share, placing Storonsky’s holdings above $36 billion. A $500 billion figure would represent more than a fourfold increase.
At that level, Revolut would stand alongside Visa and surpass nearly every publicly traded European company except the largest energy conglomerates. Storonsky has previously pointed to a $200 billion valuation as the goal for a potential initial public offering, which he estimates is at least two years off. The $500 billion ambition extends far beyond even that milestone.
Performance-based pay with no upper limit is a staple in American boardrooms but a rarity elsewhere. Musk’s Tesla package serves as the benchmark, and it paved the way for his extraordinary fortune. Arm has followed suit, offering CEO Rene Haas $800 million if the chip designer reaches a $2 trillion valuation. A deal of this magnitude in Europe would be unprecedented.
The timing is notable, arriving as European venture capital circles debate founder compensation. Index Ventures, a Revolut backer, recently closed a $2 billion fund while its cofounder argued that some of the AI boom’s gains should be redistributed. Storonsky is moving in the opposite direction, constructing a framework to capture a much larger share of the upside.
Revolut’s recent momentum lends some credibility to the ambition. The company secured a full UK banking licence in March and an Australian one in July, with a US charter still pending. It now serves 75 million customers across 40 countries, and pre-tax profit climbed 57% to £1.7 billion on revenue of £4.5 billion.
The investor roster is equally formidable, including Index Ventures, Balderton, DST Global, Ribbit, Mubadala, and Jared Kushner’s Affinity Partners. Storonsky also runs a separate venture, the quantitative firm QuantumLight, which he founded in 2023.
Two open questions remain. The first is whether Revolut genuinely merits a valuation comparable to Visa’s. The second is whether Storonsky’s board believes he deserves Musk-level compensation. Both are the kind of judgment calls that only a public listing can truly settle.
For now, this is a negotiation rather than a signed agreement. But it establishes the marker Storonsky is aiming for. Revolut is valued at $115 billion today. He is negotiating as though it will be worth more than four times that.
(Source: The Next Web)
