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

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. 41.83 +0.13 +0.31%

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.