Robinhood IPO gives founders Tenev, Bhatt a net worth of $4.6B combined
The co-founders own Robinhood stock between them to have majority control of the firm if they vote together
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Robinhood Markets Inc.'s initial public offering might have disappointed some, but it handed co-founders Vlad Tenev and Baiju Bhatt a combined $4.6 billion net worth between them.
The firm's stock started out at $38 per share in its Wall Street debut Thursday morning, but fell 8.4% to $34.82 by the closing bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HOOD | ROBINHOOD MARKETS INC. | 17.18 | +0.10 | +0.59% |
STOCK RALLY SHORT OF RECORDS, ROBINHOOD'S IPO DISAPPOINTS
Regardless, CEO Tenev, 34, and chief creative officer Bhatt, 36 – who were both already considered worth $1 billion or so each due to their company's market valuation pre-IPO – still had a great day. According to FOX Business' calculations, with each of the co-founders owning a 7.9% stake in the online trading platform, their net worth at the closing price of $34.82 makes them worth $2.3 billion each.
What's more, Barron's pointed out that Tenev and Bhatt' have Class B holdings, which have 10 times the voting power of Class A shares. So, "Bhatt has 39% of the voting control and Tenev has 26.2%, meaning they have full control of the company’s direction if they vote together," according to the report.
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Robinhood has not been afraid to pay its executives well. Its S-1 filing showed Robinhood chief legal officer Dan Gallagher, a former commissioner at the Securities and Exchange Commission, made $30 million from the company last year that will be vested over four years.