Automattic executives sign severance deals during brief CEO ouster

A neutral summary of Automattic’s interim CEO and legal chief signed reciprocal severance deals during Mullenweg’s brief ouster, published by TechCrunch. Summarised for the Ceeve reading list; the original reporting is TechCrunch's.

Automattic's board placed CEO Matt Mullenweg on paid leave on 9 September without public explanation. In a company-wide message, Mullenweg accused CFO Mark Davies of conspiring with board members to force the vote, claiming he received only 50 minutes' notice and was denied access to outside legal counsel. Mullenweg returned within 33 hours, and the board members who voted him out subsequently left the company.

During the 33-hour period, CFO Davies, who became interim CEO, and Chief Legal Officer Andy Missan signed reciprocal severance agreements providing each with 12 months' salary as a lump sum, accelerated equity vesting, and an additional year of health coverage. The combined exit packages total $8.15 million. Mullenweg dismissed both executives upon returning, and Automattic's legal team is now determining whether to honour or challenge the agreements' validity.

The circumstances invite different interpretations. One reading suggests the board sought to insulate executives from consequences of an internal leadership crisis, particularly given an ongoing legal dispute with hosting provider WP Engine over evidence destruction allegations. Another suggests the board created a temporary control window for unstated purposes, a theory Mullenweg reportedly suspects. For professionals considering Automattic roles, understanding the company's governance challenges is important context, which Ceeve's role-specific CV tools can help candidates address when applying.

Read the original on TechCrunch

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