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Swedish fintech giant Klarna made waves with its initial public offering on the New York Stock Exchange. Shares surged by as much as 43 percent on its first day of trading, and dozens of employees amassed multimillion-dollar fortunes. Founders and senior executives amass portfolios worth hundreds of millions, Klarna’s success adds another compelling example to the industry’s trend of “employee-rich companies.”
Klarna, the Swedish-based financial technology company, made a splash this week by launching on the New York Stock Exchange. The IPO not only led to millions of dollars in wealth for its investors and founders, but also for dozens of company employees.
A SIGNIFICANT RISE ON THE FIRST DAY
Klarna, which launched at $40 per share in its IPO, saw strong investor interest on its first day of trading. Shares surged 43 percent to $52, closing at $45.82. With this surge, Klarna’s market capitalization reached approximately $17 billion. A total of $1.37 billion was raised during the IPO.
EMPLOYEES EARNED A FORTUNE
The company’s successful stock market performance has also paid off thanks to the stock options offered to employees. At least 37 current and former Klarna employees have amassed multi-million dollar fortunes thanks to their holdings. According to analysis by technology publication Sifted, these individuals have made significant gains over the years through the stock options they acquired.
FOUNDERS AND EXECUTIVES ALSO MADE SIGNIFICANT PROFITS
Sebastian Siemiatkowski, the company’s founding CEO, holds approximately $920 million with his 25.6 million shares. Victor Jacobsson, the other co-founder of Klarna, who left in 2012, holds 31.4 million shares, a portfolio worth approximately $1.1 billion. Jacobsson reportedly plans to sell 2.5 percent of his holdings.
Senior executives also made significant profits from the IPO. Product and Design Director David Fock’s holdings of over 600,000 shares were worth approximately $21.6 million, while Chief Financial Officer (CFO) Niclas Neglén’s holdings of 280,000 shares brought him a net worth of $10 million, and Marketing Director David Sandström’s holdings of 290,000 shares brought him a net worth of $10.4 million.
HE HAD MADE MILLIONAIRE BEFORE
This isn’t the first time Klarna has turned its employees into millionaires. By the time the company reached a valuation of $45.6 billion in 2021, approximately 75 employees had amassed seven-figure fortunes. During that period, even some employees who held just 0.0022% of the company’s shares had earned incomes exceeding $1 million.
SIMILAR SUCCESSES IN TECH COMPANIES
Klarna’s success parallels similar examples in the tech world. Nvidia, for example, has increased its stock value by more than 3,000 percent since 2019, making most of its 36,000 employees millionaires. Australia-based Canva offered its employees stock options last year at a $42 billion valuation. Companies like Palantir and OpenAI are also among those that have amassed substantial wealth through generous bonuses and stock rights.
