9 February, 2016, USA: After continuous compliance failures, Parker Conrad has resigned from the post of CEO of Zenefits, according to the email sent to company’s employees on Monday. Conrad was heading the position at the richly valued human resources startup he co-founded.
He will be replaced by David Sacks, who is currently holding the position of Chief Operating Officer in the company. Sacks is a former executive of PayPal and Yammer. Apart from aforementioned shuffle, company has also appointed Joshua Stein as its Chief Compliance officer. Stein, a former federal prosecutor, was earlier working as the vice-president of legal affairs at the company.
Sack stated in an email, “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. As a result, Parker has resigned.”
As per the BuzzFeed News, Zenefits has violated insurance laws in multiple states. The company had allowed unlicensed brokers to sell health insurance. Taking the company for a toss, the insurance commissioner of Washington State is closely scanning the operations of the company to check whether it has operated as per the norms of the state.