Better.com Executive Departures Follow Vishal Garg's CEO Return

Further Executive Departures at Better.com

The ongoing series of executive resignations at Better.com continues to unfold.

According to information obtained by TechCrunch, both Sarah Pierce, formerly the executive vice president overseeing customer experience, sales, and operations, and Emanuel Santa-Donato, who held the position of senior vice president of capital markets and growth, have departed from the digital mortgage lender.

Internal Disagreements and Layoff Fallout

The specific reasons for their exits are currently unknown. However, individuals with knowledge of the company’s internal dynamics suggest that Pierce advocated for the employees impacted by the December layoffs, which reportedly created significant friction with CEO Vishal Garg and the board of directors.

Pierce is said to have been deeply concerned by Garg’s public criticism of the laid-off employees, many of whom directly reported to her, following the widely criticized mass dismissal conducted via Zoom.

Neither Pierce nor Santa-Donato have responded to requests for comment, and Better.com has also not provided a statement.

A Growing List of Departures

These departures add to the previous exits of three other executives who left in December following the layoffs: Patrick Lenihan (VP of communications), Tanya Gillogley (head of public relations), and Melanie Hahn (head of marketing).

Pierce had been with Better.com since August 2016, initially joining as a “growth associate.” Santa-Donato began his tenure in January 2016 as a “capital markets associate.”

On LinkedIn, Pierce acknowledged her departure with a statement.

Board Member Resignations

Additionally, two board members, Raj Date and Dinesh Chopra, recently resigned, as revealed in an internal email dated January 18th, obtained by TechCrunch. The board stated that their resignations were not due to any disagreements with Better.com and expressed gratitude for their contributions.

Employee Exodus and Morale Concerns

Earlier this week, reports surfaced indicating that employees were leaving the company in large numbers after Garg’s return from a month-long leave of absence.

The loss of Pierce is anticipated to further diminish morale among remaining employees, with one current employee, speaking anonymously, describing her as highly respected within Better.com.

The employee stated: “Sarah was arguably the most valued employee at Better over the past six years, playing a crucial role in the company’s growth and achievements.”

Allegations of a Toxic Work Environment

These departures occur amidst multiple reports detailing a “culture of fear” fostered by Garg at the company he co-founded in 2014.

Anonymous employees have shared disturbing accounts with TechCrunch, including instances of Garg making violent threats towards workers, such as suggesting he would “taser” or “choke” individuals, although no physical harm has been reported.

Future Outlook and Reputation Damage

The continued leadership of Garg, despite the negative publicity and ongoing lawsuits, has raised questions. The company’s reputation has undoubtedly suffered, potentially leading to business losses. It remains to be seen whether Better.com will proceed with its planned initial public offering or face further difficulties.

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