Revolut wants investor approval for CEO Nik Storonsky to borrow up to $250 million against his shares.
Why it matters: The request would let Storonsky unlock more cash without selling stock, while increasing the amount of equity that could be pledged as collateral. For investors, the bigger issue is governance: the vote would set the rules for how much of a founder-CEO's stake can be encumbered, and potentially create a precedent for other large shareholders.
- Revolut is seeking approval to lift Storonsky's borrowing cap against his shares from $50 million to $250 million, Sifted reported.
- The proposal would also relax limits on share pledges and expand which classes of shares can be used as collateral, according to Sifted's reporting on leaked documents.
- Revolut told Sifted the changes are routine governance updates and are not linked to IPO timing or strategy.
- Sifted said Storonsky owns about 29% of Revolut and is the only employee who qualifies for the pledge provision.
Revolut is asking investors to approve changes that would let CEO Nik Storonsky borrow up to $250 million against his stake, according to Sifted, which said the request is based on leaked documents and people familiar with the matter. The reported cap would rise from $50 million.
The governance question is not just the size of the loan. Sifted reported that the proposal would also ease limits on larger share pledges and broaden the classes of shares that can be used as collateral. That means more of Storonsky's ownership could be tied up to secure borrowing, which can matter to investors if a founder's stake becomes more leveraged.
Revolut told Sifted that the revisions are standard governance maintenance. In the statement quoted by the outlet, the company said it routinely updates its articles of association to reflect the scale and valuation of the business, and that the changes do not relate to an IPO timeline or strategy.
Sifted said Storonsky holds about 29% of Revolut and is the only employee described as meeting the ownership threshold in the governing documents. The outlet also reported that the documents would allow pledging up to 10% of ordinary shares without board approval and an additional 5% with approval.
Revolut was valued at $115 billion in an employee share sale last month, according to Sifted. The outlet also cited a Financial Times report saying Storonsky has been in talks over a new share award if Revolut reaches a $500 billion valuation.
By the numbers
- $250 million - proposed borrowing cap for Storonsky, up from $50 million
- 29% - approximate share of Revolut Sifted says Storonsky owns
- $115 billion - Revolut's valuation in an employee share sale last month, per Sifted
Yes, but: The reporting is based on leaked documents and one company statement relayed by Sifted, so the exact wording of the proposed approvals still matters.
What's next: Investors would need to approve the proposed governance changes before they take effect.