# Automattic execs signed mutual severance deals during CEO ouster

> During Matt Mullenweg's 33-hour removal, two executives approved each other's $8.15 million exit packages.
- Title: Automattic execs signed mutual severance deals during CEO…
- Summary: During Matt Mullenweg's 33-hour removal, two executives approved each other's $8.15 million exit packages. During a brief CEO ouster at Automattic, the…
- Keywords: automattic, matt mullenweg, mark davies, andy missan, severance agreements, ceo ouster, wordpress, wp engine, corporate governance, board vote, executive compensation, legal battle
- Source: TechCrunch — https://techcrunch.com/2026/09/16/automattics-interim-ceo-and-legal-chief-signed-reciprocal-severance-deals-during-mullenwegs-brief-ouster
- Author: Sarah Perez
- Published: 2026-09-16T19:35:29+00:00
- Read time: 2 min
- Topics: automattic, matt mullenweg, mark davies, andy missan, severance agreements, ceo ouster, wordpress, wp engine, corporate governance, board vote, executive compensation, legal battle
## Mullenweg ousted for 33 hours
On September 9, Automattic's board voted to put CEO Matt Mullenweg on paid leave with just 50 minutes' notice. He returned 33 hours later.
## CFO became interim CEO
CFO Mark Davies took over as interim CEO during Mullenweg's brief removal. Three board members who voted for the ouster later departed.
## Executives signed mutual severance deals
During the 33-hour window, Davies and Chief Legal Officer Andy Missan signed each other's severance agreements, effective September 10.
## Golden parachutes worth $8.15 million
Each executive gets 12 months' salary as a lump sum, accelerated equity vesting, stock options, and a year of health coverage.
## Mullenweg fired both upon return
When Mullenweg returned to the CEO role, he fired both Davies and Missan. Automattic now potentially owes them the full severance packages.
## Legal team weighing options
Automattic's lawyers are deciding whether to pay the $8.15 million or challenge the agreements' legal validity. The company replaced its counsel.
## Agreements favor the executives
The deals narrowly define when firing for cause is allowed. The company must give 60 days' notice and 30 days to fix issues.
## Davies' deal protects Automattic
Davies' agreement specifies that losing the interim CEO role won't count as grounds to resign and collect severance, as long as he stays CFO.
## Davies held no company stock
An HR document shows Davies held no Automattic stock at departure. He sold it months earlier but still held vested options.
## One theory: protecting the board
The board may have acted to address a leadership crisis and protect executives from consequences if the intervention failed, which it did.
## WP Engine lawsuit looms large
WP Engine accused Mullenweg of destroying evidence in July. The board action could show the court they took concerns seriously.
## Another theory: strategic takeover
Mullenweg suspects the board created a control window for a strategic transaction. The board never gave him a stated reason for the vote.
## Absence of explanation fuels suspicion
Without a stated reason from the board, combined with Davies' stock sale, Mullenweg decided to retake control and remove the board and executives.
## Key takeaway

During a brief CEO ouster at Automattic, the interim CEO and legal chief signed each other's generous severance agreements worth $8.15 million combined.