The coronavirus crisis has already made senior executives from Monzo, Lloyds and Revolut to slice down their own personal income.
N26 founders Valentin Stalf and Maximilian Tayenthal decided not to stay behind.
The whole senior management at Berlin-based N26 challenger bank, are taking a 25% pay cut on their own salaries for a year. This comes as a part of plans to ease the impact of COVID-19.
As mentioned, N26 is one of several fintechs that have introduced pay cuts at the senior level. Most importantly Tom Blomfield from Monzo left his whole pay for a year and Nikolay Storonsky with Vlad Yatsenko from Revolut leaving their income to the company as well.
N26 has a total of 10 members of the executive leadership team which the pay cut plan considers.
Part of the N26’s plan is also an offer to provide 150 of its employees based in Germany and Austria short-term work, known as Kurzarbeit.
This Kurzarbeit scheme, as it is known in Germany, is a wage subsidy, which is similar to the furlough scheme in the UK.
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Employees who agree to this scheme work reduced hours and receive at least 60% of their net income for up 12 months.
This means they remain on the payroll and prevents staff from being laid off.
Since there is 1,500 of N26’s employees in total the 150 figure represents 10% of their total staff count.
This February N26 announced it was closing down its UK operation from April 15 with the official reason being the UK’s Brexit but some commentators also suggested, that the UK’s market was already well covered by the domestic challengers from Monzo to Starling to Revolut.