Shopify COO Kaz Nejatian Transitions to CEO Role at Opendoor

Kaz Nejatian, the Chief Operating Officer of Shopify, will leave the e-commerce company to assume the role of Chief Executive Officer at Opendoor, a real estate technology firm based in San Francisco. His final day at Shopify is set for September 12, 2023. Shopify expressed gratitude for Nejatian’s six-year tenure, highlighting his contributions and stating that the remaining executive team is prepared to manage his responsibilities moving forward.

In a statement, Nejatian emphasized the impact Shopify had on entrepreneurs and expressed his ambition to apply that platform mindset to Opendoor. He stated, “Shopify gave millions of entrepreneurs the tools to change their lives, their families, and their communities. That platform mindset is what I hope to bring to Opendoor.”

Nejatian joined Shopify in 2019 as a general manager and vice president of Shopify Money. He later served as vice president of product and merchant services before being promoted to COO in 2022. Before his time at Shopify, he held a brief position as a product manager at Facebook (now Meta) and co-founded the payment technology company Kash.

Nejatian’s Vision for Opendoor

In a post on social media platform X, Nejatian referred to his new position at Opendoor as a “once-in-a-lifetime” opportunity to redefine possibilities in the real estate sector. Opendoor operates a digital platform that simplifies the buying and selling of homes by purchasing properties, making necessary repairs, and relisting them for sale.

Nejatian aims to foster homeownership opportunities, stating, “to build a platform for homeownership, one that unlocks opportunity for millions of families and strengthens the fabric of society.” His vision aligns with Opendoor’s mission to streamline the real estate process for consumers.

Opendoor has been experiencing significant market momentum, particularly following a surge in its stock price, which increased by over 400 percent this year due to a wave of retail investor interest. Nejatian will take over from interim CEO Shrisha Radhakrishna, who stepped in following the departure of former CEO Carrie Wheeler in August.

Compensation Structure and Market Reaction

Nejatian’s compensation at Opendoor will largely depend on the company’s stock performance over the next five years, with potential earnings reaching up to $2.6 billion USD if certain targets are met. This includes nearly 82 million common shares, contingent on achieving specific stock price milestones. In contrast, Nejatian’s total compensation for 2024 at Shopify was just over $1 million USD, which comprised both salary and share-based awards.

Following Nejatian’s announcement, Opendoor’s shares on the Nasdaq rose by more than 60 percent, trading around $9.40 USD. In comparison, Shopify’s stock dipped slightly but rebounded by 2.5 percent, currently trading at approximately $202 USD.

Nejatian’s departure comes at a time when Shopify has been under scrutiny for its recent decisions, including the discontinuation of programs supporting Black and Indigenous entrepreneurs. Additionally, former employees have raised concerns regarding past comments made by Nejatian, particularly his defense of historical figures linked to colonial policies.

Nejatian has also been involved in conservative media, co-founding the right-wing Canadian media outlet True North, which has faced backlash for its controversial content. He currently serves on the board of the True North Centre for Public Policy.

As Nejatian prepares to lead Opendoor, the real estate tech firm is poised to navigate an evolving market landscape. His leadership will be pivotal in shaping the company’s future and addressing the challenges ahead in the digital real estate space.