Observed Signal · Sep 16, 2026 · Governance · Source: techcrunch · Impact: 2/5 · Sentiment: Negative
Automattic Execs Signed Reciprocal Severance Deals During CEO Brief Ouster
During the 33-hour window in September 2026 when Automattic CEO Matt Mullenweg was placed on paid leave, interim CEO Mark Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements. These golden parachutes provide each with 12 months' salary, accelerated equity vesting, and extended health coverage. The total cost to Automattic is $8.15 million, which the company now owes both executives after Mullenweg fired them upon his return. The agreements define 'cause' narrowly and include clauses tailored to Davies's interim role. Automattic has replaced its legal counsel and is deciding whether to pay or contest the packages. The incident is linked to a broader governance struggle and ongoing litigation with WP Engine.
This is a governance story about Automattic, not directly related to AdTech or marketing technology. It may impact WordPress ecosystem but has limited direct relevance to advertising industry.
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Key Takeaways & Evidence Grounding
- Automattic's board voted to put CEO Matt Mullenweg on paid leave on September 9, 2026.
- Interim CEO Mark Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements on September 10, 2026.
- The severance packages include 12 months' salary, accelerated equity vesting, and health coverage, totaling $8.15 million.
- Mullenweg returned as CEO after 33 hours and subsequently fired Davies and Missan.
- Automattic has replaced legal counsel Gibson Dunn with Susman Godfrey LLP, and GC Jordan Hinkes has left the company.
Connected Companies & Entities
2 Entities mapped“Automattic’s board voted to put CEO Matt Mullenweg on paid leave and later he returned as CEO.”
“Automattic’s legal battle with hosting provider WP Engine is mentioned in the article.”
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
WordPress parent Automattic forces CEO Matt Mullenweg on leave
WordPress parent company Automattic's board has placed CEO Matt Mullenweg on a forced leave of absence, with CFO Mark Davies appointed as interim CEO. Mullenweg expressed surprise in internal Slack messages, alleging a 'conspiracy' by board members. The decision follows years of internal tensions and a legal dispute with WP Engine over licensing fees. Automattic confirmed the move to TechCrunch. The company, which also owns Tumblr and WooCommerce, saw mixed reactions from employees, with some feeling relief and others fearing instability.
Automattic names interim CFO after executive departures
Automattic has appointed Jeremy Klaperman, CFO of its WordPress VIP Enterprise unit, as interim CFO following the departure of former CFO Mark Davies and Chief Legal Officer Andy Missan. The changes come after an attempted board ouster of CEO Matt Mullenweg, who has since returned. Mullenweg announced the appointment internally and indicated that the board will evaluate internal and external candidates for the permanent CFO role. A candidate for chief legal officer has also verbally accepted the position. Mullenweg expressed confidence in the company's financial position, stating that everything is within control and depends on execution. The next board meeting is scheduled for September 23.
Mullenweg Claims He's Back in Control at Automattic
Automattic CEO Matt Mullenweg has returned as CEO and chairman after a failed board attempt to place him on paid leave, which lasted 33 hours. Following his return, the entire board was removed: Toni Schneider resigned, while Sue Decker and Ann Dunwoody were ousted, and Chief Legal Officer Andy Missan departed. Mullenweg, who controls 84% of voting shares, has since rebuilt the board with new members including author Hugh Howey, Amy Chan, and IRL co-founders Henry Khachatryan and Krutal Desai. Advisers include former Woop CTO Jaime Waydo and KISSmetrics co-founder Hiten Shah. The leadership shakeup occurs amid an ongoing trademark lawsuit with WP Engine and internal tensions, including layoffs and Mullenweg's reference to a fifth 'coup' attempt involving Silver Lake.
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