Automattic executives signed $8M in mutual golden parachutes during a 33-hour coup

During a 33-hour corporate coup, Automattic's interim leadership signed off on $8.15 million in mutual severance packages right before the CEO returned.

On September 9, Automattic's board voted to put CEO Matt Mullenweg on paid leave. CFO Mark Davies took over as interim CEO. During his 33-hour window in charge, Davies and Chief Legal Officer Andy Missan signed reciprocal exit packages for each other, according to documents reviewed by TechCrunch. When Mullenweg returned and fired both executives, those fresh contracts triggered a year of base salary, accelerated stock vesting, and extended health coverage.

Why it matters: Automattic is now deciding whether to pay out $8.15 million to two former leaders or challenge the legal validity of the agreements. The contracts were written to strictly favor the pair, making it difficult for the company to terminate them for cause—legal grounds to fire someone without owing severance.

Know this: Automattic has already replaced its previous outside legal counsel with litigators from Susman Godfrey LLP to determine its next moves.

It turns out the most profitable 33 hours at a tech company involved signing your coworker's exit deal.