Revolut Shifts Bonus Strategy to Cash Ahead of Potential IPO

Revolut has altered its remuneration policy to include cash bonuses, moving away from a stock-only bonus system, as the $45bn fintech prepares for a potential initial public offering (IPO). The change, disclosed in its annual report, aims to provide employees with "greater liquidity" and reflects their feedback requesting more flexibility in compensation.

Historically, Revolut paid all staff bonuses as share awards. Now, eligible employees will receive performance bonuses as a mix of cash and equity, entirely in equity, or entirely in cash, based on their roles and seniority. Senior employees are expected to receive a higher proportion of equity, while junior employees will receive more cash.

This policy shift comes as Revolut eyes a potential Nasdaq listing in the US, despite interest from UK officials. The company's valuation was cemented at $45 bn in a secondary share sale last year, resulting in a $500m windfall for over 2,200 employees who sold stock.

The introduction of cash bonuses contributed to a nearly 40% increase in Revolut's spending on wages, salaries, and bonuses, reaching £485m last year. Share-based payments also rose threefold to £179m due to the company's higher valuation. This change is happening while Revolut reported record pre-tax profits of £1bn, driven by increased customer numbers and cryptocurrency trading. 

Source: https://www.ft.com/content/8a3867fe-c114-46ef-93f0-277dd9b4a292

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