SoFi CEO Mike Cagney to step down

By Daniel Lanyon on Tuesday 12 September 2017

Alternative Lending

The news follows the lending platform launching its own investigation in anticipation of further sexual harrasment allegations.

The news follows the lending platform launching its own investigation in anticipation of further sexual harrasment allegations.

SoFi has today announced that its co-founder and CEO Mike Cagney plans to step down as the company's chief executive officer before the 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.

"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 companies.

"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. "We're confident that we can find and hire a great CEO to continue that innovation and drive excellent financial performance."

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 Corp.

In the second quarter, SoFi funded $3.1bn in loans, generating over $134m in revenue  representing 67 per cent growth year over year.

To date, SoFi has lent over $20bn but the company has more recently become embroiled in sexual harassment claims and has recent launched a investigation.

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.