CEO Who Fired 900 via Zoom Ousted from Own Company, Launches Campaign to Return
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
Vishal Garg, founder and former CEO of Better Home & Finance, who gained notoriety in 2021 for firing approximately 900 employees during a brief Zoom meeting just before Christmas, has now been ousted by his own board of directors. The company announced on August 3 that Garg had stepped down as CEO, with Daniel Lewis, who had joined the board just one week earlier, appointed as interim executive. While the company initially stated the departure was mutually agreed upon, the board later clarified that all members except Garg voted to remove him due to serious concerns about his judgment, character, and credibility. Garg claims he was deceived by Lewis, who allegedly praised the company's strategy publicly and gained his trust before replacing him. To reclaim his position, Garg has retained Alex Spiro, a prominent attorney from Quinn Emanuel who has previously represented Elon Musk, and submitted a formal consent document to the Securities and Exchange Commission asserting he controls majority voting rights to oust Lewis and four other directors.
Key Points
- Garg proposes to work for $1 annual salary until Better returns to profitability, personally invest $500,000, and have the company repurchase $30 million in shares
- The board removed Garg citing serious doubts about his judgment, character, and credibility after his series of decisions and actions
- Better's valuation plummeted from $8 billion during the pandemic to approximately $300 million, with Q2 loan originations reaching $1.67 billion
- In December 2021, Garg dismissed about 900 employees via Zoom in approximately 79 seconds, telling attendees they were "the unlucky group"
- Garg plans to transition to chairman or head of product and innovation once a permanent CEO is appointed
Why It Matters
This episode serves as a stark reminder that even founders who build companies from the ground up can face accountability when their leadership decisions damage shareholder value and corporate reputation. Garg's attempt to return with a $1 salary and personal investment underscores how board governance mechanisms can check even the most powerful executives, while his infamous Zoom layoff remains a cautionary tale about corporate communication in the digital age.
This episode serves as a stark reminder that even founders who build companies from the ground up can face accountability when their leadership decisions damage shareholder value and corporate reputation. Garg's attempt to return with a $1 salary and personal investment underscores how board governance mechanisms can check even the most powerful executives, while his infamous Zoom layoff remains a cautionary tale about corporate communication in the digital age.