Zenefits Picks Jay Fulcher as New CEO

By Rolfe Winkler 

Zenefits chose software executive Jay Fulcher as its new chief executive, the third person to lead the embattled health-benefits broker since early 2016.

Mr. Fulcher, a former CEO of software startup Ooyala Inc. and Agile Software Corp., will replace David Sacks, who in early December said he would step down less than a year after taking the reins from Zenefits co-founder Parker Conrad.

The hiring was the "last step in a planned transition that began one year ago this week, when the board asked me to step in and steward the company through a difficult situation," Mr. Sacks wrote in an email to Zenefits employees obtained by The Wall Street Journal.

Mr. Fulcher will also chair Zenefits's board, on which Mr. Sacks will continue to serve.

Mr. Fulcher last worked as chief at Ooyala, which was acquired in 2014 by Australian telecom Telstra Corp. Before that he was CEO of Agile and an executive at both PeopleSoft Inc. and SAP SE.

He will be tasked with reigniting Zenefits's momentum. Two years ago, the company raised a giant round of funding at a $4.5 billion valuation but has undergone multiple rounds of layoffs after sales, which grew rapidly through early 2015, hit a wall later that year.

The problems culminated in a rare move in which Zenefits revalued its own shares down to $2 billion to head off investor lawsuits. Zenefits also ran into regulatory troubles nationwide after staff brokered health benefits without first securing proper licenses. The company has reached settlements with more than 20 state regulators.

"Change can be difficult, and the past year has been rough," Mr. Fulcher wrote in his own email to employees obtained by the Journal. "I joined Zenefits because I believe this company can be an innovative and disruptive force in the industry."

Write to Rolfe Winkler at [e-mail]

(END) Dow Jones Newswires

February 06, 2017 11:54 ET (16:54 GMT)

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