Opendoor Technologies stunned markets by announcing a leadership shake-up that brings back its co-founders and appoints Shopify veteran Kaz Nejatian as its new CEO. The bold move is coupled with a high-stakes compensation package: a $1 salary and the potential to earn up to $2.8 billion in stock incentives if Opendoor’s share price hits ambitious targets.
Shares of Opendoor surged nearly 70% following the news, as investors rallied behind what many see as a pivotal turnaround strategy. The company, once a darling of the iBuying sector, has faced steep losses and investor skepticism. With this new leadership structure, Opendoor is signaling it is willing to bet everything on performance.
Founders return to the board
Opendoor also reinstated its co-founders, Keith Rabois and Eric Wu, to the board. Rabois will serve as chairman, while Wu is providing additional capital alongside Khosla Ventures in a $40 million equity infusion. Their return is being viewed as a reassertion of founder DNA at a time when retail investors, nicknamed the “Open Army,” have been pressuring management for drastic change.
The shake-up follows the resignation of former CEO Carrie Wheeler, who stepped down amid growing discontent over the company’s direction. Analysts say the return of the founders is as symbolic as it is strategic, aiming to restore credibility with both Wall Street and the company’s passionate retail base.
A pay package tied to stock performance
Kaz Nejatian’s deal is designed to align his fate directly with shareholders. Instead of bonuses or fixed compensation, he will rely almost entirely on stock grants that vest if Opendoor’s share price climbs sharply over multi-year benchmarks. If all targets are achieved, the package could be worth as much as $2.8 billion.
This mirrors the kind of all-or-nothing incentive structures seen in Silicon Valley’s most dramatic turnarounds, where executives are rewarded only if they deliver massive shareholder value. It is both a sign of investor confidence and a recognition of the challenges ahead.
Market reaction: the “Open Army” celebrates
The announcement immediately sent Opendoor’s stock soaring, fueled by excitement from its vocal base of retail investors. Many in the “Open Army” had been lobbying for leadership changes, and the combination of founder influence with a Shopify executive at the helm checked both boxes.
Still, analysts caution that enthusiasm could be short-lived. Opendoor continues to face macroeconomic headwinds, including high interest rates and a cooling housing market that threatens the fundamentals of its iBuying model. Long-term execution, not short-term sentiment, will determine if Nejatian’s plan succeeds.
What it means for Opendoor’s future
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Aggressive turnaround expectations: The incentive plan creates pressure to deliver growth, streamline operations, and rebuild investor trust.
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Founder influence restored: Rabois and Wu’s presence on the board could stabilize confidence, but will also bring sharper scrutiny on execution.
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Retail vs. institutional sentiment: While the Open Army has been energized, institutional investors will watch earnings closely before committing.
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Housing market headwinds: Elevated mortgage rates and slowing home sales will continue to test Opendoor’s resilience.
For now, the announcement has reinvigorated hopes that Opendoor can stage a comeback. Whether Nejatian can transform that optimism into sustainable growth remains the critical question.
