Vishal Garg Returns to Better.com Amid Leadership Controversy

Vishal Garg Returns as CEO of Better.com

Following a month-long period away from his leadership position, Vishal Garg has resumed his role as CEO of Better.com, the mortgage technology company he helped establish in 2016. This reinstatement is based on information contained within an internal memorandum that was distributed today and subsequently shared with TechCrunch.

Board's Decision and Future Leadership

The Better.com board of directors communicated in the memo their intention to proceed with “strong, dynamic CEO leadership.” This decision signifies a renewed confidence in Garg’s ability to guide the company forward.

Recent Layoffs and Resulting Criticism

This development occurs shortly after the company announced the layoff of 900 employees, representing approximately 9% of its workforce. The manner in which these layoffs were conducted – via a Zoom meeting – sparked considerable disapproval from both employees and the wider public.

In the ten days following the meeting, Better.com experienced significant reputational damage. Several senior executives in communications and public relations resigned, and the CEO’s actions became a subject of widespread online commentary, including memes circulating on TikTok. Garg subsequently issued an apology for his conduct.

Crisis Management and Workplace Training

In response to the fallout from the layoffs, the company engaged a crisis management firm. According to the board’s internal memo, Better.com will be “implementing a company-wide training program on ensuring a respectful workplace.” This initiative aims to foster a more positive and inclusive work environment.

Executive Coaching and Values Alignment

During his time away, Garg reportedly engaged with an executive coach to “reconnect with the values that make Better great.” This coaching was intended to facilitate personal and professional growth, aligning his leadership style with the company’s core principles.

Subsequent to these discussions, coupled with insights from an independent culture review and organizational adjustments, the board determined that Garg should resume his full-time duties as CEO.

Board Confidence and Future Vision

The board expressed its “confidence in Vishal and in the changes he is committed to making to provide the type of leadership, focus and vision that Better needs at this pivotal time.” This statement underscores their belief in his ability to steer the company through current challenges.

Clarification Regarding Voting Rights

Initial speculation suggested Garg might have retained his position due to super-voting shares. However, analysis of the S-4 filing submitted by Better.com’s SPAC partner, Aurora Acquisition Corp., in November revealed this was not the case, as reported by TechCrunch’s Alex Wilhelm.

Past Controversies and Employee Concerns

While remote layoffs have become more common due to the COVID-19 pandemic, Garg’s approach was perceived as insensitive and lacking empathy. Prior reports indicated a history of harshly worded emails directed at staff, including one published by Forbes in which he wrote: “HELLO — WAKE UP BETTER TEAM. You are TOO DAMN SLOW. You are a bunch of DUMB DOLPHINS and…DUMB DOLPHINS get caught in nets and eaten by sharks. SO STOP IT. STOP IT. STOP IT RIGHT NOW. YOU ARE EMBARRASSING ME.”

Furthermore, Garg recently accused “at least 250” terminated employees of misconduct, alleging they were stealing from the company and its customers by limiting their work hours to just two per day.

Employee Reaction to Garg's Return

Reports indicate that Better.com employees are largely dissatisfied with the decision to reinstate Garg as CEO. A source informed TechCrunch that “everyone is upset, and many people have already quit or are planning to.”