Automattic's Interim CEO and Legal Chief Signed Each Other's Severance Deals During Mullenweg's Brief Ouster
During a 33-hour window when Automattic's board had put CEO Matt Mullenweg on leave, two top executives signed lucrative severance agreements for each other worth a combined $8.15 million.
On September 9, Automattic's board voted to place CEO Matt Mullenweg on paid leave, a move the board has not publicly explained. In an internal Slack message, Mullenweg accused CFO Mark Davies of conspiring with three board members to force the vote, claiming he was given only 50 minutes' notice and no chance for outside legal review. Roughly 33 hours later he returned to the role, and the board members who had voted him out have since left the company themselves.
During that same 33-hour window, Davies — who briefly served as interim CEO — and Chief Legal Officer Andy Missan each signed off on the other's severance agreement, effective September 10. The deals grant each executive 12 months of base salary as a lump sum, accelerated equity vesting, the right to exercise vested stock options, and an additional year of health coverage. Combined, the packages amount to $8.15 million that Automattic now owes both men, since Mullenweg fired them upon retaking control.
The agreements define "cause" for termination narrowly, covering only things like gross negligence, knowing dishonesty or fraud causing material harm, serious confidentiality breaches, or felony conduct — terms favorable to the executives. Davies' agreement specifically states that losing the interim CEO title, while he remains CFO, would not count as grounds for him to resign and still claim severance.
It has also emerged that Davies held no Automattic stock at the time of his departure, despite holding a large number of vested stock options. Automattic's legal team is now weighing whether to pay out the severance sums or challenge their validity, and the company has since replaced its outside counsel; its general counsel also appears to have left. The episode is open to different interpretations — it could reflect the board responding to an internal crisis, potentially tied to Automattic's ongoing legal dispute with hosting provider WP Engine, or an attempt by some board members to seize control for unrelated reasons.
