Home Business Michael Cagney to Step down as CEO and Chairman of Social Finance

Michael Cagney to Step down as CEO and Chairman of Social Finance

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Mike Cagney who is the co-founder and chief executive officer of Social Finance has announced that he will be stepping down from his position. This information was released on Monday by the company which is one of the most promising and prominent finance companies in the United States. Social Finance offers its services through the internet. The resignation has been fueled by a toxic workplace culture with the chief executive to blame. At the moment, there is a sexual harassment lawsuit against the company where a number of former employees have ganged up against Mr. Cagney who is 46 years. According to people familiar with the situation, they said that the finance executive is being blamed for an aggressive business strategy in expanding the company. This has made him skirt some risks as well as compliance controls. However, the sources requested anonymity. The finance executive said that negative press, as well as the HR-related litigation, were interfering with the mission of the company. He will step down from both positions as chairman and chief executive. Through the letter, he announced that the company had already begun the process of finding a new chief executive officer. SoFi falls into the list of American companies that have to address the issue of workplace culture.

The other notable case is Uber which currently has a sexual harassment case and questions about its business tactics. These two made Travis Kalanick leave his position as chief executive. However, the former chief executive was not accused of sexual harassment personally. The venture capitalists who have invested in Uber are facing sexual harassment allegations. These two incidents have painted a black image of Silicon Valley which has always been regarded as a place that promotes progressive workplace, ideas as well as a place of innovation. Questions about the balances and checks in the Valley have been brought forward. Mr. Cagney refused to comment about the issue. At the same time, the company’s spokesman said that they had not embarked on an aggressive business that left them exposed. The spokesman also said that the case of sexual harassment involving Mr. Cagney had been investigated and no evidence was found. The company was established in 2011 and offered online financial solutions to students. Today, the company has diversified as it offers even personal loans and mortgages. Some of their investors include Baseline Ventures, Discovery Capital as well as Softbank. Up to date, the firm has raised over $4 billion.

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