Xero Exec Resigns To Join Trump Administration

Xero Chairman Chris Liddell has reportedly accepted a position within the new administration under President Donald Trump.

Reports Friday (Jan. 20) said Liddell will serve as “assistant to the president and director of strategic initiatives.” While based in New Zealand, the SME accounting software company has offices in the U.S., reports noted. The change was made effective Friday, with Xero Director Graham Smith taking Liddell’s place at the firm.

“We wish him all the best in his exciting new role,” Xero Chief Executive Officer Rod Drury said in a statement.

While the announcement led to controversy, with reports saying that some Xero customers in New Zealand said they would be canceling their subscriptions in response to the move, shares for the company increased by 1.4 percent. Drury has reportedly commented in the media that Xero has no political affiliation.

Trump is widely viewed as a champion for small businesses, with half of SMEs expecting economic conditions to improve in a recent survey, according to the National Federation of Independent Business. Researchers attributed the incoming Trump administration for the sudden spike in optimism.

The SME accounting company posted a net loss in its most recent earnings report, released in early November. Despite revealing a 48 percent increase in revenue for the first half of FY2017, investors were disappointed by the $19 million net loss for that period. The company said that the figures were a result of Xero migrating from Rackspace to Amazon Web Services, a shift the company expects to be completed by the second half of the fiscal year.

“Our focus is to build a sustainable global business with high margins, while managing our cash,” Drury said in a statement at the time. “Our revenue growth has allowed us to continue the significant investment in our platform, back office and team to support our global footprint.”