Bloomberg Businessweek (North America)

The Star Wars- themed conference

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and that Conrad disagreed. When sales started to flatline, Sacks says he pushed for a hiring freeze and that Conrad thought such a move was unnecessar­y.

By the fall of 2015, it was clear Zenefits would miss its $100 million recurring revenue goal ( the reality wound up being closer to $63 million). Some salaries were cut; Semaan says his dropped to $30,000. Conrad instituted a vacation ban, but Sacks ignored it and headed to the Caribbean. He also talked to Dalgaard about wanting to leave the company.

Dalgaard played intermedia­ry between Conrad and Sacks. “I was trying to help wherever I could,” he says. “I spent more time than is normal just hoping that [Conrad] would change, because this could be one of the biggest companies we’ve ever heard of in Silicon Valley. And I still think it can.”

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