Automattic's interim CEO and legal chief signed reciprocal severance deals during Mullenweg's brief ouster | TechCrunch

A major corporate dispute recently unfolded at Automattic when the company's board of directors voted to place CEO Matt Mullenweg on a brief paid leave of absence.

During the subsequent 33-hour window before Mullenweg reclaimed his position, Chief Financial Officer Mark Davies, acting as temporary chief executive, and Chief Legal Officer Andy Missan executed reciprocal severance agreements for one another. After Mullenweg successfully returned to power and dismissed both executives, the company was left facing a potential financial obligation of over eight million dollars. Automattic has since hired new outside legal representation to evaluate whether to honor these substantial golden parachutes or challenge their validity in court.

The severance contracts in question are highly protective, granting each executive a year of base salary, accelerated stock vesting, and continued medical benefits, while severely limiting the conditions under which they could be fired without compensation. This internal power struggle has generated multiple interpretations. Supporters of the board's actions suggest they were attempting to manage corporate risk and legal exposure stemming from Automattic's ongoing litigation with WP Engine. Conversely, Mullenweg has voiced suspicions that the board sought to wrest control of the company to push through an unapproved strategic transaction.