Dive Brief:
- David O. Sacks, Zenefits CEO, is leaving the company, reports the New York Times. A source that didn’t want to be identified said Sacks might join President-elect Donald Trump’s transition team. It appears Sacks will stay on as chairman, at least until a new CEO is found.
- The original head of the HR software company, Parker Conrad, announced his departure after California fined Zenefits $7 million for licensing violations. Company brokers were charged with selling insurance without being licensed.
- Sacks was made CEO in Conrad's stead, and was responsible for ensuring the company complied with state regulations ongoing.
Dive Insight:
The timing of the announcement is somewhat curious, as the company recently announced Z2, a new product set to signal its emergence from controversy. What this means for the future of the company, however, is unclear.
Sacks could be one of several CEOs that Trump taps for cabinet posts or other key positions. Critics have observed that his appointees are weighing more heavily on the business side than the government side, which is unusual for a president-elect.
