Zenefits CEO Parker Conrad
Getty Images
Parker Conrad has resigned as CEO of Zenefits, following a number of regulatory compliance failures at the richly valued human resources startup, according to an email sent to employees on Monday.
David Sacks, the chief operating officer, who formerly was an executive at PayPal at Yammer, is taking over as CEO. The San Francisco-based Zenefits, which was valued at $4.5 billion in a funding round last year, is a startup health insurance broker.
"The fact is that many of our internal processes, controls, and actions around compliance have been inadequate, and some decisions have just been plain wrong," Sacks said in the email to employees. "As a result, Parker has resigned."
Last fall, BuzzFeed News reported that Zenefits apparently flouted insurance laws by allowing unlicensed brokers to sell health insurance. The insurance commissioner in Washington state is currently examining whether Zenefits operated there without licenses.
On Friday, in a followup report, we revealed that 83% of Zenefits' insurance deals in Washington state through August 2015 were done by employees without necessary state licenses.
"I believe that Zenefits has a great future ahead, but only if we do the right things," Sacks said in the email. "We sell insurance in a highly regulated industry. In order to do that, we must be properly licensed. For us, compliance is like oxygen. Without it, we die."
via IFTTT
No comments:
Post a Comment