The agreements, finalized on September 10, function as golden parachutes, granting both executives a year of base salary, accelerated equity vesting, and extended health coverage. Mullenweg fired both men upon retaking control, leaving Automattic to weigh the cost of these payouts against a potential legal fight to invalidate the contracts. The company has since retained Susman Godfrey LLP to navigate the fallout, while internal records indicate that General Counsel Jordan Hinkes has also departed.
Automattic Executives Issued Golden Parachutes During Brief CEO Ouster
During the 33-hour window when Automattic board members attempted to remove CEO Matt Mullenweg, two top executives secured lucrative exit packages for one another. CFO Mark Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements that could cost the company $8.15 million following Mullenweg’s rapid return to power.
The severance documents include restrictive "cause" definitions that make firing the executives difficult, requiring specific evidence of gross negligence or criminal conduct. These terms, drafted while Davies served as interim CEO, appear designed to insulate the pair against the volatility of the board’s failed coup. While the board has remained silent on their original motivation for sidelining Mullenweg, the move occurred amid ongoing legal scrutiny involving hosting provider WP Engine and allegations of evidence spoliation. Mullenweg has openly questioned whether the board’s actions were a defensive maneuver to mitigate litigation risk or a calculated attempt to seize control of the company for a strategic transaction.
Comments (0)
No comments yet. Be the first!