with all that Over the past 18 months at Better.com, many of us are scratching my head at the fact that CEO Vishal Garg remains on duty.
On December 10, employees of the digital mortgage lender were notified via email by Better’s board of directors that Garg would be taking immediate leave following the “deeply regrettable events of the past week.”
The move came, according to an employee who declined to be named, after the digital mortgage company hired a crisis company earlier that week. For those of us following the drama, it came as no surprise.
But what is a shock is that Garg has not been asked to resign altogether. Some suspected that he had shares with super-voters and thus could vote to keep himself in the role of CEO, despite what others voted. But after delving into the S-4 filed by Better.com’s SPAC partner, Aurora Acquisition Corp., in November, we realized that’s not the case.
According to the filing with the U.S. Securities and Exchange Commission, “Entities affiliated with the Better Founder and CEO, Mr. Vishal Garg, will own approximately 17.5% of our outstanding common stock as a whole, but approximately 22.7% of the voting rights of our outstanding ordinary shares.”
To make sure we didn’t undervalue his voting rights, we also looked at Garg’s shares of unexercised options. Counting those, and taking into account the different voting rights associated with different share classes, it doesn’t appear that the former CEO has the option to block his resignation due to full voting control.