The board of Klarna Bank has agreed to remove Mikael Walther, a close ally of co-founder Victor Jacobsson, according to the Financial Times.
Seven directors agreed to push out investor Walther from the eight-person board, says the FT. The move still requires shareholder approval.
Walther has been a board member for nearly eight years and is a confidante of Jacobsson. Jacobsson left Klarna in 2012 but is still a major shareholder in the BNPL giant and has influenced the firm via Walther.
Jacobsson has reportedly fallen out with his co-founder and CEO Sebastian Siemiatkowsk in recent years. The two have disagreed over how the company will go public ahead of a planned IPO next year, according to Bloomberg.