Bloomberg News
Social Finance Inc., one of the most highly valued private financial-technology startups in the U.S., said on Monday night that Chairman and Chief Executive Mike Cagney would step down by the end of the year.
Cagney said in a note to employees that recent litigation brought against the company and “negative press have become a distraction from the company’s core mission.” The company said he would remain in the role until SoFi’s board of directors chooses a successor, a process that it has already started.
On Sunday, The Wall Street Journal reported that Cagney was previously involved in a dispute with a lower-level employee that resulted in a settlement approved by the board.
Read: Female employees at SoFi report improper behavior at the fintech startup
SoFi said Cagney was stepping down as chairman effective immediately. Tom Hutton, managing director of an insurance-focused venture-capital firm called XL Innovate, will take over as executive chairman, effective immediately. Steve Freiburg, a SoFi board member and former CEO of E*Trade Financial Corp. ETFC, +1.97% , will become vice chairman.
An expanded version of this report appears on WSJ.com.
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