German neobank N26’s investors are negotiating a leadership overhaul—CEO Valentin Stalf to step down by September, Max Tayenthal by year-end—after BaFin flagged persistent operational flaws.
Highlights
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Leadership Shake-Up Underway: Investors in N26 are pushing for co-founders and co-CEOs Valentin Stalf and Max Tayenthal to resign—Stalf by September 1 and Tayenthal by December 31—with supervisory board chair Marcus Mosen expected to serve as interim co-CEO.
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Regulatory Pressure Intensifies: A recent special audit by Germany’s financial regulator BaFin exposed “weaknesses in the internal control systems, processes and overall organisation,” prompting warnings and consideration of appointing a special monitor.
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Capital-Raising Hit: The leadership struggle arises amid renewed compliance concerns and the suspension of a planned funding round. A deal under discussion would see the founders relinquish special voting rights in exchange for investor concessions on returns.
Summary
Investors in N26, Germany’s largest digital-only bank, are reportedly in talks to oust co-CEOs Valentin Stalf and Max Tayenthal following new regulatory scrutiny from BaFin. As per a proposed agreement, Stalf would step down by September 1, with Tayenthal exiting by year-end, while supervisory board chair Marcus Mosen is being lined up as interim co-CEO.
This leadership overhaul is driven by BaFin’s latest findings during a special audit, which revealed serious lapses in N26’s risk governance, internal controls, and organizational structure. The regulatory body is considering formal warnings to board members and appointing a special monitor to ensure compliance improvements.
The fallout has stalled ambitious fundraising efforts intended to buy out early investors entitled to a 25 % annual return. Negotiations suggest the founders may give up their special voting rights in return for investor agreement to reduced returns—though supervisory board members have raised governance concerns about their immediate reappointment.
