🚨Automattic CEO on Paid Leave for 33 Hours
CEO back in just 33 hours, but board's out
TL;DR
Automattic's CEO was put on paid leave for 33 hours, then reinstated. The board's actions and quick reversal raise questions about company governance and leadership stability.
Automattic's board put CEO Matt Mullenweg on paid leave for 33 hours on September 9. The decision came with no public explanation and only 50 minutes' notice. Mullenweg was denied time to review the resolution with outside counsel. The same board members who voted him out have since left the company. Two executives signed off on generous exit packages during the brief leave, including 12 months of base salary and accelerated equity vesting, totaling $8.15 million. Automattic's legal team is now working to determine the validity of these agreements. The company's legal battle with WP Engine could be a factor in the board's actions.
Key Points
Automattic's board voted to put CEO Matt Mullenweg on paid leave on September 9, 2023.
Mullenweg was given only 50 minutes' notice before the vote and denied time to review the resolution with outside counsel.
Two executives signed off on generous exit packages during the 33-hour window, totaling $8.15 million.
Automattic's legal team is now working to determine the validity of these agreements.
The company's legal battle with WP Engine could be a factor in the board's actions.
Why It Matters
Automattic's sudden and brief CEO paid leave raises questions about board stability and governance. The quick reinstatement and generous exit packages suggest internal conflicts. Developers and investors should watch for further legal challenges and governance changes.
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