In September 2018, Mike Cagney was removed as CEO of Social Finance following questions about his sexual misconduct. The internal investigation found that Mr. Cagney was involved romantically with an employee despite his denials to the SoFi board that he was not involved with employees. Some years earlier, Mr. Cagney had promised the SoFi board that he would not have any further romantic involvements with employees after the board had learned of another romantic relationship.
Nonetheless, two SoFi board members have invested $17 million in Mr. Cageny’s new start-up, Figure. Mr. Cagney has also raised another $41 million for the company. Silicon Valley forgives easily and quickly. One wonders whether there was sufficient time and remorse for a turnaround. The board of Figure will find out.