Opendoor Technologies announced a major leadership change, appointing former Shopify COO Kaz Nejatian as its new CEO. The move coincides with the return of founders Eric Wu and Keith Rabois to the board. Additionally, Khosla Ventures and Wu invested $40 million in new equity capital into the company through a private purchase.
This significant Opendoor leadership change also includes Rabois taking the role of chairman. Meanwhile, directors Pueo Keffer and Glenn Solomon have stepped down from the board. The company aims to re-inject founder energy with these appointments and its new investment.
CEO's Performance-Based Compensation
Nejatian will receive a base salary of just $1 and no bonus. Instead, his compensation is heavily tied to stock performance. He receives two "make-whole" awards totaling $30 million and two large performance-based stock awards, a notable shift in executive compensation strategy.
The first performance award vests over five years if the stock maintains a price above $6.24. The second, larger award has seven price hurdles, ranging from $9 to $33 per share. Hitting all targets could grant Nejatian compensation valued at $2.78 billion. This would give him 11.6% ownership, a model that differs from competitors like Zillow and Redfin.
Consequently, Opendoor's stock surged over 78% following the announcement.
The new CEO's pay structure contrasts sharply with that of his predecessor, Carrie Wheeler. Wheeler, who stepped down in August, had a $750,000 base salary and a $25 million restricted stock award. This shift, therefore, signals a new direction for the real estate technology firm after its recent Opendoor leadership change.
