Opendoor Technologies has appointed Kaz Nejatian as its new CEO, offering him an aggressive compensation package that ties $2.78 billion to the company’s stock performance. Nejatian will need to triple the stock price to benefit fully from his compensation, which includes a $15 million cash award and a $15 million stock award contingent on performance milestones.
The company’s founders, Eric Wu and Keith Rabois, have returned to the board to infuse “founder’s DNA and energy” into Opendoor, with significant capital investments from Khosla Ventures and Wu amounting to $40 million. This shift comes alongside other leadership changes, including the resignation of two key managers.
Nejatian, previously COO at Shopify, aims to revitalize Opendoor using AI to simplify real estate transactions. His base salary is set at just $1, highlighting a performance-driven compensation model. In contrast, former CEO Carrie Wheeler had a salary of $750,000 plus bonuses.
Stock performance is critical; Nejatian’s awards depend on hitting price targets between $6.24 and $33. His appointment has already sparked a significant increase in Opendoor’s stock price.
Overall, Nejatian’s leadership marks a strategic pivot for Opendoor, emphasizing a results-oriented approach as the company seeks to grow in a competitive market.
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