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The former top German central banker will head the country’s most valuable FinTech N26 supervisory board as part of a leadership remodel aimed at resolving conflicts between investors and founders.
Andreas Dombret, a member of the One-Time Bundesbank Executive Committee, told the Financial Times that he would be “appointed by the founder and several investors” as the new chair of the N26 Supervisory Committee, adding that he would “formalize the proposal at an extraordinary general meeting in the near future.”
According to those familiar with the details, current board chair Marcus Mosen will become co-CEO alongside N26 founder Maximilian Tayenthal.
German financial regulator Bafin and the Bank’s Board of Supervisory Board have already approved the Mosen’s move, people added, confirming previous reports by the FT.
“Marcus Mosen has known the company since its inception and has full trust in investors. As CEO, he is confident that he is essential to supporting the N26 position for long-term growth and lasting success.”
The re-socialisation follows months of tension between the company’s investors, its co-founders and current co-chief executives Valentin Stalff and Teiental.
Founded in 2013 as an online-only bank, N26 has faced problems in the past with Bafin’s weak money laundering control and risk management.
Regulators recently flagged new concerns and threatened further sanctions – previously capped customer numbers and special monitors, exacerbating long-term disputes with other investors over the role of founders.
Stalf and Tayenthal have negotiated a deal that waives special veto on major strategic decisions in exchange for reduced returns promised to investors in their 2021 funding. The funding valued N26 at 7.7 billion euros and guaranteed new investors an annual return of 25%.
The transaction includes a STALF move from the CO-CEO role to the Supervisory Board after the cooling-off period in exchange for a reduced guaranteed returns provided to investors in 2021. That has not yet been concluded, said those familiar with the issue.
Under the negotiated agreement, Tayenthal will leave his management role by the end of December, they added.
According to people with detailed knowledge, Dombrett was able to start his new position soon in October. They added that his appointment still has to be approved by Bafin, but this is likely formal due to Dombret’s experience as a board member of Bundesbank between 2010 and 2018.
An invitation to the meeting to decide on the appointment of Dombrett will be sent next week.
A Dombret spokesman mentioned N26 and Mosen for comments. N26 declined to comment on Mosen’s move and negotiations between investors and founders. Mohsen declined to comment.
