Fintech giant Revolut ties CEO compensation to aggressive growth targets as global user base reaches 52 million customers
Three Key Facts
- $150 billion valuation target – Revolut CEO Nik Storonsky secures performance-based compensation deal that could award him billions in additional shares if company value surpasses $150 billion, potentially increasing his stake by 10%
- Annual profits more than doubled – Revolut’s pre-tax profit surged to $1.4 billion in 2024 while revenue climbed 72% to £3.1 billion, driven by 52.5 million active customers across 48 countries
- IPO speculation intensifies – Company rejected $65 billion secondary share sale in early 2025, signaling confidence in higher future valuation and potential public listing, though CEO favors US over London markets
Introduction
Revolut’s chief executive Nik Storonsky positions himself for a multibillion-dollar windfall through a performance-based compensation package that mirrors Elon Musk’s controversial Tesla deal. The arrangement awards additional shares to Storonsky as the fintech firm’s valuation crosses specific milestones, culminating at $150 billion.
Storonsky negotiated this deal before SoftBank’s funding round as Revolut aimed to nearly triple its market value from the previous $45 billion estimate. The former Lehman Brothers trader, who founded Revolut in 2015, currently owns over 25% of the company through direct and indirect shareholdings.
Key Developments
The compensation structure eliminates traditional salary and cash bonuses in favor of stock options tied to valuation milestones. This approach directly parallels Musk’s $56 billion Tesla package from 2018, which faced significant shareholder opposition and legal challenges.
According to The Guardian, Revolut crafted this arrangement before its 2021 funding round, which established it as the UK’s most valuable fintech at $33 billion. The company reached a $45 billion valuation in late 2024 following a secondary share sale.
Revolut has expanded far beyond its original pre-paid card service for currency exchanges. The company now employs over 10,000 staff across 36 countries, offering more than 50 products including money transfers, crypto trading, and business banking services.
Market Impact
Revolut’s financial performance validates its aggressive valuation targets. Pre-tax profits reached $1.4 billion in 2024, while total revenue climbed 72% year-on-year to £3.1 billion. Active customers grew 38% to 52.5 million, surpassing several major UK lenders.
Customer deposits surged from £18.2 billion in 2023 to £30.2 billion in 2024, demonstrating robust user engagement. Subscription revenues alone grew 74% to £423 million, while business customer revenue hit £460 million.
The company’s valuation trajectory reflects this growth, climbing from $33 billion in 2021 to $48 billion in 2024. Revolut’s rejection of a $65 billion secondary share sale in early 2025 signals management confidence in achieving even higher valuations.
Strategic Insights
Revolut’s diversification strategy positions it as a comprehensive digital banking platform rather than a specialized fintech service. Recent expansions include launching ATM networks in Spain, entering mobile telecommunications, and developing stablecoin offerings.
The company’s Revolut X crypto exchange capitalizes on increased cryptocurrency activity, while new initiatives span private banking, AI-powered customer service, and business lending. This broad product portfolio reduces revenue concentration risk and creates multiple growth vectors.
Technology investment remains central to operations, with AI and machine learning systems preventing over £600 million in potential fraud during 2024. This technological foundation supports scalability across Revolut’s 48-country footprint.
Expert Opinions and Data
Industry observers draw direct comparisons between Storonsky’s compensation deal and Musk’s Tesla arrangement, which faced substantial investor opposition. Norway’s sovereign wealth fund and California’s state teachers’ retirement system opposed Tesla’s package, citing governance concerns.
A US judge ultimately voided Musk’s $56 billion package in 2024, ruling that Tesla’s board lacked sufficient independence during negotiations. This precedent raises questions about similar performance-based executive compensation structures.
Storonsky dismisses London IPO prospects as “not rational,” citing superior US market liquidity and trading freedom. UK politicians and City bankers hoped for a London listing to boost the London Stock Exchange, but regulatory advantages and market depth favor American exchanges.
The UK Financial Conduct Authority’s previous investigation into Revolut’s money-laundering procedures, though closed without public findings, highlights ongoing regulatory scrutiny. The company obtained a restricted UK banking license in 2024 after prolonged regulatory review.
Conclusion
Revolut’s performance-based executive compensation reflects broader trends toward tying leadership rewards to company valuation milestones. The arrangement positions Storonsky for substantial wealth creation while aligning his interests with shareholder value.
The company’s strong financial performance and global expansion provide foundation for ambitious valuation targets, though achieving $150 billion requires sustained growth in an increasingly competitive fintech landscape. Revolut’s strategic positioning and technological capabilities support its trajectory toward becoming a major digital banking force.
