Key facts
- Automattic's board voted to place CEO Matt Mullenweg on leave on September 9.
- CFO Mark Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements on September 10.
- The severance packages provide 12 months of base salary, accelerated equity vesting, and a year of health coverage.
- Mullenweg fired Davies and Missan upon his return to the CEO role.
- Automattic's legal team is assessing the validity of the severance agreements.
- The agreements define 'cause' narrowly, requiring written notice and a cure period for termination without severance.
Automattic's Chief Financial Officer Mark Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements on September 10, the day after the board voted to place CEO Matt Mullenweg on a brief leave of absence. Mullenweg, who returned to his role approximately 33 hours later, subsequently fired both executives. The severance packages, described as golden parachutes, would provide each executive with 12 months of base salary, accelerated equity vesting, and an additional year of health coverage. The total potential payout for both executives is estimated at $8.15 million. Automattic's legal team is now evaluating the validity of these agreements. The company has appointed Stephen Shackelford and Shawn J. Rabin of Susman Godfrey LLP as its new legal counsel to handle the matter, replacing Gibson Dunn. Mullenweg had accused Davies of conspiring with board members to force his ouster, and the board members who supported the vote have since left the company. The severance agreements include a narrow definition of 'cause' for termination without severance, requiring written notice and a cure period for any alleged misconduct.