Klarna has paid more than $16 million to nonprofits founded by the wife of its CEO.
The Swedish fintech has distributed $16.55 million to nonprofits founded by its chief executive officer Sebastian Siemiatkowski’s wife over the last five years, according to the company’s F-1 filing with the Securities and Exchange Commission on Tuesday.
Klarna has paid Nina Siemiatkowski’s nonprofit Milkywire $2.75 million for its services since 2022, and a further $1 million to purchase carbon credits, which are permits to offset a portion of its greenhouse gas emissions through supporting projects that remove the equivalent amount of emissions.
It has also contributed $12.8 million to date to the WRLD Foundation, another nonprofit founded by the Klarna chief’s wife, which channels donations to organizations identified and vetted by Milkywire on Klarna’s behalf, the filing shows.
According to the WRLD Foundation’s website, the climate impact-focused nonprofit was established in 2021 to raise awareness around sustainability, run educational programs, and support other nonprofits. Klarna’s F-1 filing also notes that it allows customers to choose to make donations to the WRLD Foundation through its app and website as part of its environmental, social, and governance initiative.
Founded by Nina Siemiatkowski in 2018, Milkywire’s website says it delivers climate impact solutions in areas including carbon removal, nature restoration, and protection. Klarna’s F-1 filing also states that Milkywire provides it with other services and tools, including “product development, digital integrations, websites, campaigns, content creation and other digital solutions.”
Klarna said in the filing that it underwent a thorough screening process before engaging Milkywire for its services and that it believes the fees paid to it are competitive. It added that the partnership was approved by its board of directors, but that Siemiatkowski recused himself from the process, in line with its conflict of interest policy.
Klarna declined to comment.
Klarna isn’t the only company to engage with organizations linked to its executives’ families. Google has previously invested in genetics firm 23andMe, which was cofounded by Anne Wojcicki, who was married to Google cofounder Sergey Brin at the time.
Klarna’s disclosure comes as it readies for its IPO next week, seeking to raise up to $1.72 billion in its debut on the New York Stock Exchange.
Have a tip? Contact this reporter via email at [email protected] or Signal at jyotimann.11. Use a personal email address and a nonwork device; here’s our guide to sharing information securely.
Read the full article here
