Luminar CEO Replaced After Ethics Inquiry | Billionaire Founder Steps Down

Luminar CEO Austin Russell Steps Down Following Ethics Inquiry

Austin Russell, formerly a billionaire due to the public offering of his lidar company, Luminar, has reportedly been removed from his position as CEO, as indicated by the company’s board of directors.

Luminar’s board revealed on Wednesday – coinciding with the release of its first-quarter earnings report – that Russell had been replaced by Paul Ricci. Ricci previously held the positions of chairman and CEO at Nuance.

Resignation and Board Inquiry

According to the official press release, Russell has resigned from his roles as both president and CEO, as well as chairperson of the board, with the changes taking effect immediately.

The board stated that this resignation occurred after an inquiry conducted by the audit committee concerning a code of business conduct and ethics. Russell will continue to serve on the board and will be available to the incoming CEO for assistance with the transition and technical aspects.

Further Board Changes

Following the announcement of the leadership change, Jun Hong Heng, a member of the board, also submitted his resignation. A regulatory filing clarified that this decision was not prompted by any disagreements regarding the company’s operations, policies, or practices.

The circumstances surrounding Russell’s departure – whether it was a voluntary resignation or a forced removal – remain unclear. Attempts to reach both Russell and Heng for comment were unsuccessful.

The board has not disclosed further details regarding the ethics inquiry, except to state that it will not affect the company’s reported financial results.

Discrepancy in Public Statements

Notably, the company’s earnings report and accompanying slide presentation did not mention the change in leadership. The initial first-quarter press release even featured a positive statement from Russell, detailing the company’s strategy for cost reduction with its new Halo product.

“Amidst global economic uncertainty and challenges, we are progressing rapidly with production scaling, cost optimization, and capitalizing on future opportunities, as demonstrated by today’s announcements,” Russell stated. “This initiates Luminar’s new operational plan, centered around a unified product platform, fostering focused business streamlining, and unlocking organizational value.”

However, this message contrasts with the narrative presented in the board’s press release.

New Leadership and Board Confidence

“We are pleased to welcome Paul as our next CEO,” stated Matt Simoncini, a board member. “His accomplishments are well-documented. He possesses a unique blend of technical understanding and operational expertise, coupled with visionary leadership.”

“His dedication to innovation, his proven ability to expand organizations, and his foresight regarding technological advancements make him the ideal candidate to guide us through our next phase of growth. The Board is fully confident in his leadership and anticipates a promising future.”

Simoncini, who retired as CEO of Lear in 2018, currently chairs the board’s audit committee. Other members include Jun Hong Heng, Dominick Schiano, and Daniel Tempesta.

Luminar’s Rise and Early History

Luminar gained prominence in the autonomous vehicle industry in April 2017, after years of operating discreetly. Austin Russell, then 22 years old, quickly became a recognized figure in Silicon Valley.

Founded by Russell in 2012, the company remained largely unknown to the public for several years. Russell developed the Luminar technology while participating as a Thiel Fellow, a program providing $100,000 over two years to young individuals to pursue their entrepreneurial ideas outside of traditional education.

SPAC Merger and Valuation

In 2021, Luminar merged with Gores Metropoulos Inc., a special purpose acquisition company (SPAC), resulting in a post-deal market valuation of $3.4 billion. Prior to the SPAC announcement, Luminar had secured $250 million in funding.

This article was originally published on May 14th and has been updated to reflect the resignation of a board member.