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Automattic's board forces CEO Matt Mullenweg into leave of absence

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Why This Matters

Automattic's board voted to place founder-CEO Matt Mullenweg on paid leave against his will, installing CFO Mark Davies as interim CEO — an extraordinary move at a founder-led company that powers a huge share of the web. The abrupt process, disclosed by Mullenweg himself in a company Slack channel, raises questions about governance and stability at the parent of WordPress.com. For now, the board says the open-source WordPress.org project is unaffected, with Mullenweg still leading it and remaining on Automattic's board.

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Matt Mullenweg, the founder and CEO of Automattic, best known as the parent company of WordPress.com, has been put on a leave of absence by his board against his will, according to a Slack message seen by TechCrunch.

Earlier Wednesday, Mullenweg posted in a Slack channel visible to all employees that the company’s Chief Financial Officer, Mark Davies, had “conspired” with other board members Ann Dunwoody, Toni Schneider, and Sue Decker to vote to put Mullenweg on a paid leave of absence.

The message read:

And the biggest news: I won’t be able to make the [meeting] tomorrow. @Mark Davies has conspired with @Ann Dunwoody, @Toni, and @Sue Decker behind my back and they voted to put me on a paid leave of absence. I voted against that. Wishing Mark and all of you the very best.

To clarify @Mark Davies was voted as interim CEO. I received the resolution 50 minutes before the meeting start, and requested repeatedly for time to have it reviewed by independent legal counsel, even a few hours, which was denied.

A Slack message to the open-source WordPress.org community from the project’s executive director, Mary Hubbard, also confirmed Mullenweg’s change of status at the commercial company. However, Hubbard said that WordPress.org was not impacted. “Matt remains the leader of the WordPress project and I remain Executive Director of WordPress. Our teams, priorities, and work continue as planned,” she wrote.

Mullenweg’s Slack message did not make clear why Automattic’s board took this action. Sources told 404 Media, which was the first to report the news, that Schneider — the former CEO of Automattic from 2006 to 2014 — confirmed that the action was initiated by the board. Davies also told employees in the Slack channel that Mullenweg remained on the board of directors.

In an emailed statement to TechCrunch, Automattic confirmed Mullenweg was on leave.

“Matt Mullenweg is currently on leave from Automattic,” the email read. “Mark Davies, Automattic’s CFO, will lead the company as interim CEO. The Board has full confidence in Mark’s leadership and in the team’s ability to execute against the company’s priorities.”

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