Chime’s Founders Hedge Their Bets

Chime executives and bankers will spend the next week trying to convince investors that its stock will rise after its initial public offering. The company’s cofounders seem to be preparing for the opposite.

New stock awards granted to cofounders Christopher Britt and Ryan King as part of the offering set a low bar potentially at the expense of shareholders who buy into the IPO. Chime’s cofounders would earn millions of dollars worth of additional stock if its stock price rises from the lowest average trading price during a 30-day period in Chime’s first six months as a public company. That means Chime’s cofounders would be rewarded even if shares fall, as long as they turn back up.