Thread

Automattic has a new board after failed attempt to put CEO on leave

148 points · 194 comments · ilamont

flerchin · 1790439254 · focus · HN ↗
It says he has 84% of the voting shares. Is there any possible way that the board could have been successful? Regardless of Mullenberg, (and I know he's controversial) a coup that is pre-ordained to fail seems like value destroying negligence.
1. jordanb · 1790439445 · focus · HN ↗
  They could have known they wouldn't succeed but they could have decided their fiduciary duty requires them to either try or resign.
  1. hoten · 1790439645 · focus · HN ↗
    Didn't they craft themselves a nice golden parachute if fired? Then proceeded to kick off events that would guarantee their dismissal?
    That's less fiduciary duty and more hacking a payday.
    throw0101a · 1790441061 · focus · HN ↗
    > That's less fiduciary duty and more hacking a payday.
    A large golden parachute for firing a board member could be a disincentive mechanism to do it: a 'poison pill' of a kind.
    * <a href="https://en.wikipedia.org/wiki/Shareholder_rights_plan" rel="nofollow">https://en.wikipedia.org/wiki/Shareholder_rights_plan
    They could have felt they were doing the right thing, and making a public statement of the situation, but knew it was a bit of a kamikaze tactic and so made it more painful for when the eventual backlash occurs.
    fwipsy · 1790442645 · focus · HN ↗
    Regardless of intent, if true (haven't verified myself) it seems like a hell of a perverse incentive.
    throw0101a · 1790454275 · focus · HN ↗
    IMHO so it tying CEO pay to stock price. Unless the options/cash-out is delayed for 5+ years after they leave the position, they can 'juke the stats' in the short-term while leaving the company in a bad place long-term (obligatory Boeing-being-run-by-MBAs reference).
    awb · 1790457820 · focus · HN ↗
    If it was a poison pill then why make the severance $8M instead of the majority (or all) of the value of the company?

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