It's been quite a week over at SoFi.
The whole thing kicked off Monday with rumors that sexual harassment was rampant inside the online lender, and that CEO Mike Cagney was stepping down at the end of the year. On Tuesday, some crappy blog spoke to SoFi insiders who detailed not so much a culture of harassment, but an ongoing back office bacchanalia that involved "backseat promotions" and banged-out toilet seats. Wednesday was dominated by a NY Times report detailing Cagney's office affairs, and Thursday brought a look into SoFi's Theranos-esque approach to credit analysis.
But today is Friday, and the week of hell is over. So just one quiet day and then the weekend, on Monday this will all have seemed like a bad dream...What? Sofi has an announcement?
The SoFi Board of Directors today announced that Executive Chairman Tom Hutton will expand his responsibilities and become interim CEO effective immediately, assuming day-to-day leadership of the company. The Board has accepted co-founder Mike Cagney’s resignation as CEO and as a member of the Board effective immediately and will accelerate its search for a new CEO.
You don't see this too often, guys. Even Travis Kalanick was allowed to keep his board seat and try to make trouble for his successor. SoFi essentially thanked Cagney for his service and laid out a long carpet for his exit, then as soon as his back was turned the board decided to burn the carpet, hit Cagney with a rock and throw his limp body out the window.
Hutton is a McKinsey veteran and Silicon Valley pro who - on paper - seems capable of Making SoFi Boring Again. He will have something of a task at first cleaning up the mess left behind by Cagney and former CFO Nino "Magic Hands" Fanlo, but SoFi's basic business seems quite salvageable if Hutton and newly-installed CFO/vice-chairman Steven Freiberg can put out some fires.
So, that's SoFi's plan; a Silicon Valley grandee will fix the culture while a former Citigroup exec and E*Trade CEO repairs what's wrong in the product lending business.
Why are you laughing?