SoFi CEO Mike Cagney To
September 12, 2017
co-founder and CEO Mike Cagney plans to step down as the company’s chief
executive before year end. The company has begun a search for Cagney’s
successor as CEO, and Cagney will remain in the role until the board
names a successor.
This follows a lawsuit over sexual
harassment where former employees clamed that Mr. Cagney, 46, had
inappropriate relationships with SoFi employees.
In a letter to employees, Mr. Cagney
wrote that "the combination of HR-related litigation and negative press
have become a distraction from the company's core mission."
"I believe now is the right time for
SoFi to start the search for a new leader,” Cagney said. “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 also announced that the company’s Board of Directors has elected
Tom Hutton as SoFi’s executive chairman, effective immediately. Cagney
has stepped down as chairman.
Hutton was appointed to the SoFi board 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. He has served as a director of several private and public financial
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. “We’re confident that we can find and hire a
great CEO to continue that innovation and drive excellent financial
Steven Freiberg, acting CFO and a member of the SoFi board, will take on
an expanded role as vice chairman. Freiberg, a 30-year financial
services sector veteran, previously served as CEO of of E*Trade and
co-chairman and CEO of Citigroup’s Global Consumer Group. He sits on a
number of corporate boards, including MasterCard and Regional Management
In the second quarter, SoFi funded $3.1 billion in loans, generating
over $134 million in revenue (67 percent growth year over year) and
$61.6 million in adjusted EBITDA (60 percent growth year over year). To
date, SoFi has lent over $20 billion to the company’s more than 350,000
members, helping them finance their educations, buy houses, and invest
for the future.