In a major exec departure, Square COO Keith Rabois will be leaving the San Francisco payments company. Square gave no other information about the sudden management change, but sources said disagreements between Rabois and CEO and founder Jack Dorsey were part of the reason for his exit there. It’s not clear if there were more serious issues between them or whether the parting was related to a specific business problem. But the departure of the No. 2 exec is significant, so definitely more to come on what happened.
It is clearly a loss for Square. Rabois maybe feels it’s time for him to start his own thing. Maybe, we’ll know more soon.
Update: It seems now that he resigned because of sexual harassment claims. As he explains in a blog post, he began a relationship with someone and later recommended him to interview at Square, which worked. Kara Swisher for AllThingsD has an interesting bit:
The man and Rabois were still seeing each other socially until December, when the relationship cooled. And then came the lawsuit threat two weeks ago, which Rabois said “stunned” him.
Let’s precise that the lawyer and its clients are asking for a payment of millions of dollars to settle the argument. It looks nothing like a genuine claim to me.