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

Automattic's board has been restructured following a failed attempt to remove its CEO, shifting governance control.

Automattic CEO Matt Mullenweg has reconstituted the company's board following a recent attempt by previous directors to place him on leave. The new board, announced to staff, includes author Hugh Howey and IRL co-founders Henry Khatachryan and Krutal Desai, alongside advisor Hiten Shah. This development occurs weeks after the prior board voted to put Mullenweg on leave, a decision he overturned within 33 hours by leveraging his 84% voting share control. Several original board members resigned or were removed, including former CEO Toni Schneider and CFO Mark Davies. The governance dispute also led to Automattic retaining new legal counsel, Susman Godfrey LLP, amid ongoing litigation with hosting provider WP Engine.

The new board composition at Automattic, featuring a science fiction author and co-founders of a defunct social app known for bot activity, signals a bold reshuffling of governance priorities. This move, empowered by Mullenweg's significant voting control, suggests a shift towards individuals aligned with his vision, potentially prioritizing innovation and less traditional board oversight. The inclusion of figures like Hugh Howey and the IRL co-founders may indicate a strategy to bring diverse, perhaps unconventional, expertise into strategic decision-making. It also raises questions about the company's risk tolerance and future direction, especially given the past controversies surrounding some appointees.

This internal power struggle and subsequent board overhaul at Automattic, a major player in the WordPress ecosystem, could impact its stability and strategic partnerships. The abrupt changes and the company's decision to hire top-tier litigation counsel amidst ongoing legal battles suggest internal pressures and a determination to assert control. Stakeholders and employees will be watching closely to see if the new board can provide stable leadership and navigate the complex legal and operational challenges ahead, potentially setting a precedent for founder control in the face of board opposition.