Afterpay CEO Nick Molnar steps down, Anthony Eisen to take over

Nick Molnar says “nothing’s really changed” at Afterpay, as co-founder Anthony Eisen takes his CEO job.

Anthony Eisen, left, will take over as CEO as Nick Molnar, right, steps down.

Afterpay co-founder Nick Molnar says the company’s executive shake-up has been in the works for some time, and is not a reaction to recent events including an Austrac probe.

Afterpay today announced Mr Molnar has stepped down as chief executive, with co-founder and current chairman Anthony Eisen to take over as managing director and CEO.

The move comes as the company’s business model comes under increasing regulatory scrutiny, and as its product sparks the attention of big potential competitors, including Visa.

Speaking to The Australian, Mr Molnar - who will take up a role as chief revenue officer - said the changes are a reflection of how he and Mr Eisen have been operating since the “buy now, pay later” provider was founded in 2014.

“I’ve been spending a significant amount of my time in the US building relationships and scaling our vision from retail engagement and customer relationship perspectives,” Mr Molnar said. “The reality is Ant and I have been working in this way since the day we started, so from my perspective nothing’s really changed in that regard.

“There’s never ego associated with anything we do, the opportunity in front of us is to scale as fast as we can and really capture it... And the way Ant and I really work together is quite special.”

Mr Eisen told The Australian that the changes announced today, including that the company would appoint new independent board members and an independent chairman, would help Afterpay attack its global ambitions.

“It’s not changes at all that just relate to trying to put a governance point of view across,” he said. “From our perspective, good governance is good business. It addresses some of those issues but what’s good for the business is at the core of our decision-making.

“The opportunity that we have is global and aligning the organisational structure around that global opportunity is a key differentiator for us. Changing our structure allows us to really focus on that.”

The ASX-listed tech darling has endured a rollercoaster few months, facing an Austrac probe into its compliance with anti-money laundering laws, as well as stiff competition from the likes of Visa and PayPal.

The company’s share price dropped 15 per cent on Friday after Visa announced a pilot program in which customers can pay with instalments at the checkout using Visa cards.

Investors have liked today’s announcement, however, with shares climbing almost 7 per cent to $26.05 at 1pm (AEST).

Elana Rubin will serve as interim chair while the board searches for Mr Eisen’s replacement. Meanwhile Malte Feller has left Facebook to join Afterpay as the company’s global chief operating officer, and current chief operating officer Barry Odes will shift to a chief of staff role.

Group head David Hancock, who took that role following the merger of Afterpay and Touchcorp in mid-2017, will depart Afterpay in the next 12 months.

The company added that Anthony Eisen and Nick Molnar remain “fully committed to the business and “remain as excited as ever by the potential to build an Australian listed global technology company that is focused on delivering a customer-centric and trusted service to a global audience.”

It said they do not intend to sell any further shares during the current financial year, after shares plummeted on news the pair would sell $100 million worth of stock last month.