Splitit founder and chairman seek $2m in fees and share bonus

The chairman and the founder of Afterpay rival, Splitit, have asked investors to waive performance hurdles on share rights and approve consultancy fees that would deliver the duo more than $2 million.

The notice of shareholder meeting, which was released to the ASX on Monday, said Splitit investors will be asked to remove the performance hurdles on four million share rights for founder Gil Don. Investors are also being asked to approve a $US110,000 ($163,000) cash bonus as he prepares to step down from the chief executive's role on October 1.

Splitit Chairman Spiro Pappas (left) and chief executive Gil Don. Credit: Eamon Gallagher

The rights were subject to the company achieving merchant transaction volumes of $150 million this calendar year. Splitit reported transaction volumes totalling $US34.4 million for the first half.

"These Class A performance rights will vest immediately following shareholder approval at the AGM," the company said in its notice of meeting.

The notice said the board was also seeking approval for a $US110,000 cash bonus for Mr Don "in consideration for Gil's efforts and past performance in his role as the company's CEO".

Another six million performance rights, subject to the company achieving transaction volumes of $350 million in 2020, and $1.1 billion in 2021, have been cancelled.

Investors are also being asked to approve $270,000 worth of consultancy fees for their chairman - former NAB executive and Atlas Iron chairman Spiro Pappas for his aid in setting up a debt facility to service the business and ongoing work during the CEO transition up until February next year.

The $30,000 per month consultancy can be extended beyond the current expiry date with the agreement of both parties.

Splitit listed at 20¢ a share in January but it astonished the market with a ten-fold gain within six weeks of its IPO this year to an intraday high of $2.

The stock closed 4 per cent lower at 59.5¢ on Monday.