Co-founder of N26 steps down as co-CEO at Revolut competitor due to investor strife
N26 Co-CEO Steps Down Amid Investor Pressure and Regulatory Concerns
In a significant shake-up for the digital bank N26, co-founder Valentin Stalf has announced his departure as co-CEO, following negotiations with investors. Stalf will join the supervisory board after a transition period, with Marcus Mosen being lined up as interim co-CEO.
The decision comes as part of a broader governance deal, aimed at appeasing investors and regulators, and addressing concerns about risk management weaknesses highlighted by Germany’s financial regulator, BaFin. The deal involves the founders relinquishing their special veto voting rights, and accepting reduced returns on investments, after previous funding rounds guaranteed high annualized returns.
Tensions between investors and the co-founders have been reported, with investors pressuring the duo to exit their executive roles. Stalf is expected to leave by early September 2025, with Tayenthal potentially stepping down later in the year. The current members of the supervisory board had opposed their direct appointment, arguing that it could undermine the board's independence.
Stalf has been contemplating his exit from the management of the company for some time, and plans to spend more time expanding his family office, which he has been building up over the past years. Stalf and his co-founder Max Tayenthal own about 20% of N26.
Under Germany's two-tier board system, the management board runs a company's day-to-day operations. Stalf expects two more executives to join the management board over the coming six to 12 months. The deal being discussed between the co-founders and investors would see Stalf and Tayenthal given two supervisory board nominations.
N26, valued at €7.7 billion in a 2021 fundraising round, has more than 200,000 customers in Ireland. However, the company has faced repeated warnings about risk management failures from BaFin, with the German financial watchdog threatening to impose fresh sanctions.
Tayenthal remains fully committed to his role as per N26's statement. Stalf and Tayenthal could opt to nominate themselves for the supervisory board, subject to approval by regulators. Stalf's new role on the supervisory board will be "very different" from his operational duties as chief executive.
This leadership restructuring is aimed at mitigating operational risks and enabling future growth, with the founders moving out of hands-on management but retaining significant shareholding and influence through the supervisory board.
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