Ruslan Kogan, the founder and CEO of his namesake e-commerce company, is planning to remove his $848,000 salary and short-term bonuses to make way for the retailer’s next phase of growth. His remaining $50,000 minimum wage payment will also be donated to charity.

It comes after a positive financial year for Kogan and its investors. The group’s gross sales surpassed $1 billion, rising by 12 per cent from the previous year.

But its founder wants more; all of Ruslan Kogan’s remuneration is now staked on the company’s ability to increase its total shareholder return by 100 per cent in five years. If Ruslan and his team achieve this, he’ll be in for a near $50 million payout.

“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,” said Kogan chair Greg Ridder.

“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.”

Ridder added that “while the arrangements are different, the underlying principle is straightforward: the major long-term rewards are tied to substantial shareholder value creation.”

The retailer also told investors that its CFO and COO, David Shafer, has agreed to stay with the company until June 2028. Shafer made public his intentions to step down after 16 years in late August.

Shareholders have yet to approve Ruslan Kogan’s remuneration package. The company is set to hold an extraordinary general meeting (EGM) in due course.