Kogan boss risks salary for a $50m payday

Kogan boss Ruslan Kogan has proposed a "highly unusual" remuneration plan which will see him work for free, but receive $50 million if he can double his company's share price. Plus, homeowners warned to watch out for "disaster chasers" and Nike falls off the list of America's top 100 companies. Here are five money stories you may have missed this week.

1. Kogan CEO willing to work for free in bid for $50 million payday

The founder and CEO of online retailer Kogan is proposing to cut his own salary by almost $800,000, forego any bonuses and give any money he receives to charity in exchange for potentially earning millions in the future.

Announcing the proposal to the ASX this week, the company's chair said Ruslan Kogan's "unconventional" remuneration plan would drive his ambition, innovation and long-term thinking.

Under the proposal, Kogan's annual salary would be reduced from $847,838 to a legally required minimum wage of $50,000.

Kogan would then give this away to charity and forego any short-term incentive bonuses in a bid to make the company's share price reach $7.44 within five years, more than double what it is now.

If he achieves this, Kogan will receive 6,740,331 shares of his own, which would be worth over $50 million.

The proposal must first be approved by Kogan shareholders.

Australian Shareholders' Association CEO Rachel Waterhouse says the proposal is "highly unusual," but could please investors.

"It fits what shareholders are looking for, they are looking to really see that value is being created," she says.

"The biggest risk here is that there's only one measure of success... we'd also expect some non-financial metrics, so they could be things around customer or staff satisfaction".

2. Aussies warned to watch out for 'disaster chasers'

A major insurance company is warning homeowners to beware of dodgy tradies who could come knocking if their home is damaged this storm season.

Ahead of summer, IAG says Assies should watch out for "disaster chasers" - scammers posing as tradespeople who promise cheap repairs to communities hit by storms, floods or bushfires.

Disaster chasers have been known to offer free property inspections, before deploying high-pressure sales tactics to get homeowners to pay upfront for repairs.

These repairs are often never completed.

IAG says one of its brands, NRMA Insurance, has recorded a 65% increase in disaster-chaser related claims since 2023 and says more than 1700 customers have been targeted in the last five years.

These scammers may claim to work for your insurer, but NRMA says it will never send a builder or tradesperson without arranging it with you first and will never ask for upfront payment on-the-spot.

3. Household names kicked off S&P 100

Nike and Colgate-Palmolive will lose their spots in the list of America's 100 largest and most established companies later this month, as consumer goods falter and tech companies surge.

S&P Global last week announced the companies, whose products have been a familiar sight in homes for decades, would be among four businesses removed from its S&P 100 index.

The companies are being taken off because their market capitalisation has fallen below other businesses, namely tech brands like Dell and Sandisk, who'll replace them on the index.

Nike's removal comes after its share price fell 80% from a peak five years ago.

CMC market analyst Henry Fisher says being dropped from the S&P 100 is an "embarrassing milestone" for the famous footwear brand.

"Nike has a real company problem, with revenue flatlining and net income halving since 2022," he says.

Fisher argues the company's push into direct-to-consumer sales led to it losing market share, but notes it's also been affected by issues hitting the broader fashion industry.

"Higher borrowing costs and cost-of-living pressures have squeezed households [and] discretionary spending," he says.

4. Fewer ways to pay rent and strata fees

Aussies paying rent or strata fees using the popular DEFT system will no longer be able to use credit or debit cards to cover these costs.

System operator Macquarie Bank has blamed the incoming card surcharge ban for the change, which will come into effect on October 1.

The bank says it's making the decision in order to focus on "fast, fee-free payment methods".

DEFT handles 1.2 million rental payments per month and is used by over 1200 real estate agencies and strata firms, according to realestate.com.au

Australia's Reserve Bank announced in March it would ban surcharges on debit and credit card payments on the EFTPOS, Mastercard and Visa networks from October.

The central bank said this would make payments simpler, but Macquarie is just the latest lender to use the rule change as an excuse for winding back services.

Major banks have already announced they will hike fees, make it harder to earn rewards points and cut perks on their credit cards because of the surcharge ban.

5. Apple releases most expensive iPhone ever

Once treated with wonder and amazement, smartphones to many of us now just feel like a tool needed to get through life.

But Apple is trying to revive the novelty of yesteryear with its new iPhone, the first to have a foldable screen.

The iPhone Duo will go on sale later this year and while its dexterity has grabbed headlines, the proposed price is also having an impact.

Anyone wanting to buy one of the devices in Australia will have to stump up at least $3499, more than for any other iPhone before.

Whether it will cause people to once again line up outside Apple stores remains to be seen.

Samsung has been selling smartphones that fold into different shapes in Australia for several years without any great fanfare, but maybe Apple's popularity locally will get people excited about the new design.

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