Automattic's interim CEO and legal chief signed reciprocal severance deals
5 hours ago
- Automattic's board voted to put CEO Matt Mullenweg on paid leave on September 9, without public explanation, and he returned after 33 hours, with the board members who voted him out departing.
- During Mullenweg's leave, interim CEO Mark Davies and CLO Andy Missan signed each other's severance agreements, providing 12 months' salary, accelerated equity, and extended benefits, totaling $8.15 million owed by Automattic.
- Automattic's legal team is deciding whether to pay the severance or contest its validity, and has replaced its counsel with Susman Godfrey LLP; general counsel Jordan Hinkes also left for an AI startup.
- The severance agreements require broad release and post-employment compliance, and define 'cause' narrowly to limit when severance can be voided, with specific provisions tailored to Davies' interim CEO role.
- Davies owned no Automattic stock at his departure, having sold it months earlier, but retained significant vested options per HR documents.
- The events spark two interpretations: the board addressed a leadership crisis, potentially linked to evidence spoliation in the WP Engine dispute, or Mullenweg suspects a strategic move, possibly involving a transaction, given the stock sale and lack of explanation.
- Automattic, Missan, and Davies have not commented, and the article was updated with context on Hinkes' exit and Mullenweg's X post.