Automattic Executives Sign Reciprocal Severance Deals During CEO's Brief Leave
Last week on September 9, Automattic’s board placed its founder and CEO Matt Mullenweg on paid leave without a public explanation. In response, Mullenweg accused CFO Mark Davies of conspiring with three board members to push through the vote behind his back. He was reinstated as CEO after about 33 hours when those same board members resigned from the company. During this brief period, Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements for each other that include a year of base salary paid in one lump sum, accelerated equity vesting, stock option exercise rights, and continued health coverage. The combined value of these packages is $8.15 million, which Automattic now faces paying or contesting legally. Mullenweg has fired both executives upon his return as CEO, and the company’s legal team is evaluating whether to honor the agreements. Mullenweg also announced a change in external counsel from Gibson Dunn to Susman Godfrey LLP.
Topics: board conflict CEO ousting corporate governance severance agreements