Kogan.com Ltd (ASX: KGN) boss Ruslan Kogan is making a $50 million bet he can deliver shareholders better than 100% returns over the next five years, or he gets paid nothing.
An all-or-nothing bet on strong growth
The online retailer has released new remuneration details for the founder and chief executive, under which his base salary has been cut from $847,838 to just $50,000, all of which he will give away to charity.
Mr Kogan will earn no short-term incentives, with his entire remuneration tied to the goal of a 100% total shareholder return over the next five years, from the level of $3.72 per share.
Kogan shares are currently changing hands for $3.35, meaning Mr Kogan is already behind on the benchmark.
Unlike many remuneration schemes, there is no pro rata or graduated vesting, meaning Mr Kogan will either be paid the entire amount under his remuneration deal or nothing at all.
If he succeeds, he will be granted 6.7 million performance rights, which would be worth just shy of $50 million.
The company said achieving the remuneration hurdle would represent about $383 million in extra shareholder value over the five-year term.
Shareholders will be asked to vote to accept the terms of the remuneration package at a meeting yet to be scheduled.
Company is listening to shareholders
Kogan Chair Greg Ridder said of the new arrangements:
In developing these arrangements, the Board has listened carefully to feedback from shareholders and other stakeholders, particularly on the importance of clear and demanding performance conditions and a strong and transparent link between executive reward and shareholder returns. Kogan.com has always been an entrepreneurial business, and the Board believes the remuneration framework should support the ambition, innovation and long-term thinking that have been central to the Company’s success to date, while maintaining the clear accountability and strong shareholder alignment expected of a listed company.
Mr Ridder said the core Kogan business delivered a strong result in FY26, with more than $1 billion in gross sales, expanding margins, increasing profitability, higher fully-franked dividends, and a strong capital position.
He added:
That positive momentum has continued into FY27 given the July gross sales and revenue results disclosed a few weeks ago. The Board wants to build on that performance by retaining and appropriately incentivising the executive directors who helped deliver it, and position the Company to deliver on the exciting growth opportunities ahead and increase shareholder value.
Kogan is currently valued at $322.3 million.
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com. The Motley Fool Australia has recommended Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.