The power struggle in Klarna is about to be decided

Next year, Klarna is expected to go public. Ahead of this, a power struggle has erupted in the board between two of the founders. Now it will be decided whether the representative of one party will be kicked out.

» Published:

The power struggle in Klarna is about to be decided
Photo: Magnus Hjalmarson Neideman/SvD/TT

Share this article

Most things point to the payment giant Klarna going public next year. The company's CEO Sebastian Siemiatkowski has previously said, among other things to TT, that the company is ready and that it's only a matter of timing.

However, ahead of a potential IPO, several media outlets have reported that a power struggle has erupted in the board of directors.

It was Financial Times that first revealed the conflict between two of the company's founders, Siemiatkowski and Victor Jacobsson.

Contradictions

Victor Jacobsson, who has not worked operationally in the company for several years and left the board in 2016, has since been represented by Mikael Walther. Together, they own around 9 percent of the company's shares, but now the rest of the board has decided to kick out Walther, according to FT.

The background is, among other things, according to Bloomberg, that he allegedly opposed a bonus program aimed at Siemiatkowski. He is also said to have opposed the CEO and early investors getting a type of shares that would give them greater influence in the company after an IPO.

The company's chairman Mike Moritz, who according to Bloomberg is close to Siemiatkowski, has in a letter urged the owners to vote out Walther at an extraordinary general meeting on October 24, according to the news agency.

Rejects allegations

The board has had a law firm investigate Walther and after that deemed him no longer suitable. According to the news site Breakit, which has published both letters, the board believes, among other things, that Walther has threatened to block various decisions, such as setting up a holding company in the UK.

Walther has rejected the allegations and urged the owners to vote for him to stay. In a comment to Bloomberg, he says the investigation has been used as a tactic in an ongoing dispute about how the company should be governed in the long term.

As recently as last winter, the owners got rid of another board member, Sequoia's representative Matthew Miller. Miller had to go after another power struggle, where he failed to get rid of chairman Mike Moritz.

Klarna was founded in 2005 by Sebastian Siemiatkowski, Victor Jacobsson, and Niklas Adalberth. Adalberth has over the years sold off a large portion of his shares.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Wall Street Mixed as Fed Cuts Interest Rate but Signals Caution

Wall Street Mixed as Fed Cuts Interest Rate but Signals Caution

Fed Lowers Interest Rate by 0.25 Points, Signals More Cuts This Year

Fed Lowers Interest Rate by 0.25 Points, Signals More Cuts This Year

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Avanza Introduces Digital Trading on London Stock Exchange

Avanza Introduces Digital Trading on London Stock Exchange

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Swedish Inflation Expectations Rise Slightly in Latest Survey

Swedish Inflation Expectations Rise Slightly in Latest Survey

Sweden's Unemployment Rate Stays High in August

Sweden's Unemployment Rate Stays High in August

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Verisure Returns to Stockholm Stock Exchange with Major Listing

Verisure Returns to Stockholm Stock Exchange with Major Listing

Oracle and Partners to Acquire TikTok's US Operations

Oracle and Partners to Acquire TikTok's US Operations

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

US Stock Market Sees Slight Decline Amid Retail Sales Data

US Stock Market Sees Slight Decline Amid Retail Sales Data

Trump Extends TikTok Deal Deadline to December 16

Trump Extends TikTok Deal Deadline to December 16

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand