Senior Twitter executive to run troubled finance startup SoFi
New York Times|
Jan 24, 2018, 09.20 AM IST
SAN FRANCISCO: The embattled online lender Social Finance has poached Twitter's chief operating officer, Anthony Noto, to be its new chief executive, dealing a blow to Twitter's turnaround campaign.
Social Finance, known as SoFi, announced Noto's hiring Tuesday, just four months after Mike Cagney was forced to step down as its chief executive because of sexual harassment claims. Cagney was accused in a lawsuit of having had inappropriate relationships with company employees and questioned over whether he had skirted risk and compliance controls.
In Noto, SoFi has chosen a fast-rising executive in the tech industry. Noto, 49, was one of the most respected bankers at Goldman Sachs before becoming the chief financial officer of the National Football League and then Twitter.
Since arriving at Twitter, Noto has been perhaps the most trusted deputy to the company's chief executive, Jack Dorsey, and has taken on several additional roles. He has recently been leading the company's interactions with investors and its marketing as well as its revenue-generating efforts, especially with its moves into live video.
With Dorsey splitting his time between Twitter and Square, the payments company, Noto is credited with being a calming force as Twitter has faced significant employee turnover and doubts about its ability to make money from its enormous audience.
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 Noto's departure was announced, the company's shares fell nearly 4 percent before recovering some of the loss.
Twitter said Tuesday that other employees would assume Noto's responsibilities while it looked for a replacement.
On Twitter on Tuesday morning, 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, Noto will be responsible for trying to steady a company that was thrown into turmoil by Cagney's departure.
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 Cagney's departure, though, SoFi significantly trimmed its ambitions, pulling back its application to get a bank charter.
Noto suggested Tuesday that he planned to pick up where Cagney had left off.
Social Finance, known as SoFi, announced Noto's hiring Tuesday, just four months after Mike Cagney was forced to step down as its chief executive because of sexual harassment claims. Cagney was accused in a lawsuit of having had inappropriate relationships with company employees and questioned over whether he had skirted risk and compliance controls.
In Noto, SoFi has chosen a fast-rising executive in the tech industry. Noto, 49, was one of the most respected bankers at Goldman Sachs before becoming the chief financial officer of the National Football League and then Twitter.
Since arriving at Twitter, Noto has been perhaps the most trusted deputy to the company's chief executive, Jack Dorsey, and has taken on several additional roles. He has recently been leading the company's interactions with investors and its marketing as well as its revenue-generating efforts, especially with its moves into live video.
With Dorsey splitting his time between Twitter and Square, the payments company, Noto is credited with being a calming force as Twitter has faced significant employee turnover and doubts about its ability to make money from its enormous audience.
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 Noto's departure was announced, the company's shares fell nearly 4 percent before recovering some of the loss.
Twitter said Tuesday that other employees would assume Noto's responsibilities while it looked for a replacement.
On Twitter on Tuesday morning, 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, Noto will be responsible for trying to steady a company that was thrown into turmoil by Cagney's departure.
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 Cagney's departure, though, SoFi significantly trimmed its ambitions, pulling back its application to get a bank charter.
Noto suggested Tuesday that he planned to pick up where Cagney had left off.
