Automattic executives Mark Davies and Andy Missan signed severance agreements for each other during a brief period last week when CEO Matt Mullenweg was on paid leave. The agreements, effective September 10, provide each executive with 12 months of base salary paid as a lump sum, an accelerated vesting schedule for their equity, and an additional year of health coverage.
Davies, who served as interim CEO, and Chief Legal Officer Missan signed the deals during the 33 hours between Mullenweg's board-mandated leave on September 9 and his return to the CEO role. The total estimated value of these packages, including accelerated equity and a year of salary, is $8.15 million that Automattic would owe both executives, who were reportedly fired by Mullenweg upon his return.
Automattic's legal team is currently determining whether to pay these sums or challenge their legal validity. The company has replaced its previous counsel, Gibson Dunn, with Stephen Shackelford and Shawn J. Rabin of Susman Godfrey LLP.