N26 co-founder Valentin Stalf will step down as chief executive and join the German digital bank’s supervisory board. The move follows tensions between investors and the bank’s founders.
The decision comes shortly after BaFin, Germany’s financial regulator, raised fresh concerns about N26. Last month, the watchdog threatened new sanctions against the company. N26, which has more than 200,000 customers in Ireland, has faced repeated regulatory challenges in recent years.
Investor Talks
Stalf’s departure is tied to negotiations between N26’s founders and investors. Stalf and fellow co-founder Max Tayenthal jointly own about 20% of the bank. They are considering giving up special voting rights that give them veto power over major decisions. In return, investors would accept reduced returns on their investment.
N26 was valued at €7.7 billion in 2021. The fundraising deal included a guaranteed 25% annualised rate of return for investors.
You may find it interesting at FinanceMagnates.com: Investment Tech Provider to N26 and Revolut Raises €100M.
Leadership Changes
Tayenthal, who shares the chief executive role with Stalf and oversees the licensed bank entity, will remain in position for now. However, people familiar with the talks told the Financial Times that he may step down later.
Chairman Marcus Mosen has been considered for the role of interim co-CEO, according to earlier reports. N26 said Tayenthal “remains fully committed” to his responsibilities.
Read More: BaFin Imposes 9.2 Million EUR Fine on N26 for 2022 Compliance Lapses.
Supervisory Role
Germany’s two-tier governance system separates the management and supervisory boards. The management board runs daily operations, while the supervisory board oversees strategy, pay, and executive appointments.
Stalf said he had been planning his exit “for some time” and would transition over six months. He added that his supervisory board role would be “very different” from his duties as chief executive.
His decision was accelerated after reports last week revealed he was preparing to leave.
