SoFi Taps Chairman Hutton for Interim CEO as Cagney DepartsBy
Online lender faces a lawsuit over claims of sexual harassment
Hutton is managing director at venture firm XL Innovate
Social Finance Inc. named Executive Chairman Tom Hutton as interim chief executive officer, replacing co-founder Mike Cagney, who is stepping down immediately amid accusations of sexual harassment.
Earlier this week, SoFi said Cagney would depart the online lending service before the end of the year while the board searched for a new CEO. In a statement Friday, SoFi said it would accelerate its search for a leader.
SoFi, one of the most valuable financial technology startups, is facing a lawsuit over claims of sexual harassment and fraudulent actions by managers. Cagney is said to have engaged in at least one inappropriate relationship with a female employee, according to people familiar with the matter, behavior that was said to help fuel a toxic work environment. Other high ranking executives have also left, including the chief financial officer and chief revenue officer.
Hutton was appointed to the SoFi board in June 2012. An initial investor in the company, he serves as managing director of XL Innovate, a venture capital firm focused on insurance and financial technology. He was formerly CEO of White Mountain Re Group and Risk Management Solutions Inc. and has served as a director of several private and public financial companies.
For its new CEO, SoFi is looking for someone with a history of success in banking, rather than someone with a technology background, people familiar with the matter said. The board is also hoping to find a replacement soon, the people added, though it’s unclear if Cagney’s abrupt departure will give them more or less time to conduct their search.
— With assistance by Jennifer Surane, Katherine Chiglinsky, and Sonali Basak