Senior Twitter Executive to Run Troubled Finance Start-Up SoFi

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Senior Twitter Executive to Run Troubled Finance Start-Up SoFi


2018-01-23 23:33:29

While Twitter’s stock price has fallen steadily over the last three years, in the last few months it has ticked upward. On Tuesday morning, after Mr. Noto’s departure was announced, the company’s shares fell nearly 4 percent before recovering some of the loss.

Twitter said on Tuesday that other employees would assume Mr. Noto’s responsibilities w while it looked for a replacement.

On Twitter on Tuesday morning, Mr. Dorsey wrote, “I’m really sad to see @anthonynoto leave us, but I’m happy for him and really proud of everything he’s accomplished at Twitter.”

At SoFi, Mr. Noto will be responsible for trying to steady a company that was thrown into turmoil by Mr. Cagney’s departure.

After cofounding SoFi in 2011, Mr. Cagney turned it into one of the few breakout stars among the thousands of so-called fintech start-ups trying to disrupt the financial industry.

SoFi began by refinancing the loans of elite students, but the company then expanded into personal loans, insurance and wealth management, and was making several moves to turn into more of a full-service bank.

After Mr. Cagney’s departure, though, SoFi significantly trimmed its ambitions, pulling back its application to get a bank charter.

Mr. Noto suggested on Tuesday that he planned to pick up where Mr. Cagney had left off.

“SoFi has a significant opportunity to build on its leadership position in student and personal loans to revolutionize consumer finance and build a next-generation financial services company,” Mr. Noto said in a news release.

Mr. Noto will also need to find replacements for several top executives who left around the same time that Mr. Cagney did, including the company’s chief financial officer and chief technology officer.

Mr. Noto’s new job, which will start on March 1, could put him into competition with his old boss, Mr. Dorsey. Mr. Dorsey’s second company, Square, has recently been making moves to become more of a consumer bank, as SoFi had looked to do under Mr. Cagney.

Since Mr. Cagney’s departure, SoFi has been led by the chairman of its board, Tom Hutton. Mr. Hutton will return to his former role.

“We are simply thrilled to have found someone of Anthony’s expertise and knowledge to lead SoFi,” Mr. Hutton said in a news release. “The SoFi board unanimously agrees that Anthony’s deep understanding of technology, consumer and financial businesses make him the perfect fit to be SoFi’s C.E.O.”

Mr. Cagney was one of the highest-profile executives in Silicon Valley to be felled by the wave of sexual harassment claims that have swept corporate America over the last year.

SoFi employees said the inappropriately sexualized atmosphere of the company ran deep and extended to the company’s satellite offices.

Unlike some other executives, Mr. Cagney did not acknowledge that the claims against him were true, though he did announce the start of an internal investigation before his departure.

SoFi has not yet made public the findings of that investigation. The company’s chief human resources officer, Jing Liao, announced in December that SoFi was creating two working groups to improve the company’s culture and its approach to inclusion and diversity.

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