With many tech startups having moved into highly regulated financial industries is the Zenefits admission an isolated instance of Silicon Valley not quite getting the compliance issues?
Zenefits, the fast-growing human resources startup, yesterday swapped out CEOs and admitted to regulatory troubles with selling insurance. “Many of our internal processes, controls, and actions around compliance have been inadequate, and some decisions have been just plain wrong,” Zenefits new CEO David Sacks, formerly of PayPal, said in a statement. The company also appointed Josh Stein, a former federal prosecutor, as chief compliance officer. Zenefits, the fast-growing human resources startup, yesterday swapped out CEOs and admitted to regulatory troubles with selling insurance. “Many of our internal processes, controls, and actions around compliance have been inadequate, and some decisions have been just plain wrong,” Zenefits new CEO David Sacks, formerly of PayPal, said in a statement. The company also appointed Josh Stein, a former federal prosecutor, as chief compliance officer.
