Care.com CEO to leave post after background check scandal

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Care.com’s top executive will step down from her post, the firm announced on Tuesday, as the company continues to face fallout from revelations that it failed to conduct background checks on prospective caregivers, including some who had police records for crimes against those they were hired to care for.

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CRCMCARE.COM INC9.55-0.41-4.12%

Sheila Lirio Marcelo is leaving as CEO once a successor is named and will instead transition to executive chairwoman.

In the new post, Marcelo will “focus her efforts on advocating for improvements and innovations in the country’s care infrastructure to better enable families to find quality care and caregivers to find meaningful work,” Care.com said in a statement.

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In a separate statement, Marcelo said she is "excited to be able to focus on broader policy and advocacy issues, while being available to advise and support our new leadership on the next phase of growth and innovation.”

Leading the search for the new CEO alongside Marcelo is lead independent director George Bell and board director Marla Blow.

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The news was released alongside the company’s financial results for the three months through the end of June. In the quarter, Care.com’s revenue grew 11 percent to $51 million, while profits dropped to 9 cents. Despite the scandal, membership rose 15 percent to 34.1 million.