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During a 33-hour window when Automattic's board ousted CEO Matt Mullenweg, two executives signed reciprocal severance deals worth $8.15 million combined. Mullenweg returned and fired them, triggering a legal dispute over whether the agreements are valid.
- CFO Mark Davies and Chief Legal Officer Andy Missan each signed the other's severance agreement on September 10, granting 12 months salary plus accelerated equity vesting — deals that only take effect if they sign broad legal releases and comply with non-compete clauses.
- Davies held no Automattic stock at departure (sold "a few months ago" according to one source) but retained vested stock options, raising questions about his financial motivations during the board action.
- The severance agreements define "cause" so narrowly that Automattic faces a high bar to avoid paying out: the company must notify in writing within 60 days, give 30 days to fix the problem, and secure board majority approval — making legal challenges uncertain.