Nubank may pay up to BRL 816 million to its top executives

The compensation to be paid by the company astonished the market. Nubank says the value will only be paid if goals are met

Nubank's co-founders David Vélez, Cristina Junqueira and Edward Wible. Photo: Courtesy
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Brazilian fintech Nubank is expected to pay up to BRL 816 million in compensation to top executives and board members in 2022, according to a document published by the neobank.

According to the report that companies send to the stock exchange B3 and the Securities and Exchange Commission (CVM), around BRL 804 million will be shared among the eight members of Nubank‘s statutory board. Another BRL 11 million will be shared by eight paid members among the nine that compose the digital bank’s board.

The disclosed values sparked a buzz on social media on Wednesday, since the bank, which made its debut on the New York Stock Exchange in December with a $2.6 billion IPO – which valued it at $48 billion at the time – had a net loss of $165.3 million in 2021.

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Nubank said on Thursday that it should only pay compensation to its directors this year if the bold share price targets are met.

“More than 85% of Nu Holdings’ forecasted statutory board stock compensation in 2022 is conditional on the achievement of ambitious, specific and sustained share price targets in line with the long-term interests of our ‘stakeholders,'” the digital bank said in a statement to Reuters.

The conditions for this compensation include that the average price of class A common stock never falls below $18.69 for a period of 60 consecutive days. The second condition is that the average price of the class A common stock stays at or above $35.30 for a period of 60 consecutive days. Currently, Nubank‘s share price is at a level of $6.33.

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The compensation expected by Nubank to its executives is much higher than the BRL 185.3 million paid by the bank last year. The amount is also higher than the BRL 46.6 million in salaries paid to directors and advisors.

Itaú Unibanco, Latin America‘s largest bank and which ranked below Nubank‘s market value at the time of the digital bank’s IPO, paid its managers BRL 444 million last year, including stock options and fixed compensation, according to its reference report. The compensation was shared among 45 members of the board, statutory executive board, and fiscal council.

Bradesco, meanwhile, paid about BRL 880 million in compensation to members of the administrative and fiscal boards and the executive board in 2021. The digital bank Inter paid BRL 26.2 million to 27 executives last year.

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