One month after reports of lewd behavior and wrongful termination against the web-based lending startup Social Finance became known, the organization has declared that its hard-charging CEO Michael Cagney will be resigning toward the end of the year. The organization said that it has just started a headhunt for Cagney’s successor, and that he will stay in the position until the point that a substitution is found.
Cagney, who will likewise step down from the organization’s Board of Directors (where he filled in as executive chairman), becomes the most recent CEO in Silicon Valley to be brought down amongst claims of sexual offenses against staff.
“I believe now is the right time for SoFi to start the search for a new leader,” Cagney said, in a statement. “I could not be more proud of the company we’ve built together, and I look forward to passing the baton to a new CEO who can continue SoFi’s mission of revolutionizing personal finance, helping our members to get ahead and find financial success.”
SoFi, an online moneylender that has turned into a powerhouse in financial technology circles, made its name refinancing student loans. Be that as it may, the startup, which has raised about $2 billion since its initiation in 2011, has since proceeded onward to a wide range of loaning services. The organization’s directorate has named Tom Hutton, an investor in the organization and the managing director of financial technology firm XL Innovate, as the organization’s new official administrator.
“With Mike at the helm, SoFi has become a major, innovative player in consumer finance. We are grateful for all he’s done to help build this remarkable company,” Hutton said in a statement.
“We’re confident that we can find and hire a great CEO to continue that innovation and drive excellent financial performance.”
The organization likewise said that Steven Freiberg, SoFi’s acting CFO and SoFi board member, will go up against extra scrutiny as the organization’s Vice Chairman. Freiberg had previously filled in as the CEO of E*Trade and co-director and CEO of Citigroup’s Global Consumer Group.
SoFi subsidized $3.1 billion in advances, creating over $134 million in income and $61.6 million in balanced EBITDA in the second quarter alone. The organization said it has issued over $20 billion in advances since its dispatch.