Swedish Klarna has posted an eye-watering annual loss for 2022. The annual losses exploded to SEK10.4 billion ($1 billion), up from SEK7.1 billion ($680 million) in 2021. However but the Swedish buy now, pay later company raised its CEO’s pay by more than a third. Net losses narrowed in the fourth quarter to SKr1.9 billion from SKr4.6 billion a year earlier. Credit losses were SKr1.4 billion in the three months, an improvement of 18% in the same period in 2021.
We are making concrete progress towards profitability, simultaneously driving growth well ahead of ecommerce and reducing credit losses and costs.
Sebastian Siemiatkowsk, Klarna CEO
Despite the losses, Sebastian Siemiatkowski’s total remuneration increased 35% to SKr13.2 million ($1.27 million). Klarna said its remuneration policy was aligned with other tech companies “in order to hire and retain the best talent.” However, staff cuts and the 85% cut in its valuation have left hit the fintech unicorn. Siemiatkowski told the Financial Times that he expected the company to start making profits again by Q3 2023.
It is certainly difficult and perhaps even inappropriate to judge the work of a CEO as an outsider. However, the optics are certainly not favorable. While the fintech scene and the company stumble, the CEO gets more money.
