Karma calls: CEO who fired 900 in cruel 1 min call sacked, now begs for his job

This story has significance for readers across Kenya and beyond.

- The Better Home & Finance board unanimously rejected former CEO Vishal Garg's request to return, weeks after he was fired on August 3

- Garg offered to work for $1 per year until the company returned to profitability, citing tripled loan volumes and progress on AI strategy

- Directors cited serious concerns over Garg's judgment and alleged he refused to sign documents required for a critical regulatory filing

The board of Better Home & Finance has formally rejected a reinstatement bid from ousted founder Vishal Garg, intensifying a governance crisis at the struggling mortgage technology company less than a fortnight after his dismissal.

Garg was terminated on August 3 and replaced by Daniel Lewis, a hedge fund manager who had joined the company's board just one week before being elevated to the chief executive role.

Following his removal, Garg wrote to the board requesting that his firing be reversed, offering to lead the company for a symbolic salary of $1 per year until it achieved profitability.

The board, in a statement issued without Garg's participation, described his removal as both necessary and unanimous.

Directors cited "serious concerns regarding Garg's judgment, temperament and credibility," pointing to cumulative net losses of more than $1.5 billion since 2022 and a share price that had collapsed by more than 90% during his tenure.

They further alleged that Garg refused to sign documents required for a critical regulatory filing, causing an unnecessary delay, and that communications had been uncovered which may have violated US securities laws. Garg has publicly addressed these allegations.

What is Vishal Garg's record?

Garg's tenure at Better has long attracted controversy. In 2021, he became widely criticised after laying off approximately 900 employees during a 79-second Zoom call.

He subsequently took a leave of absence, faced a whistleblower lawsuit that was later dropped, and was the subject of a Securities and Exchange Commission investigation that resulted in no enforcement action.

In recent years, Garg had focused on rebuilding the company through artificial intelligence and a refinancing strategy he argued was beginning to deliver results, with loan volumes reportedly tripling.

"It's an acknowledgement that I've been doing this for 10 years, but execution hasn't been perfect," Garg said. "I hope it gets resolved. I think the future still remains very bright for Better."

Garg has also questioned Lewis's motives, alleging that Lewis spent six months advising him on cost-cutting while privately pursuing the chief executive role.

"I suspect he always wanted to become CEO. The board made a mistake," Garg said.

Better Home & Finance legal battle takes shape

Since Lewis assumed control, Better's stock has fallen a further 45%, according to company filings. Garg says the decline prompted several investors to contact him urging a fight for reinstatement.

He has retained attorney Alex Spiro of Quinn Emanuel and sent a formal demand letter to the board. Garg also indicated he may deploy his Class B shares, which carry enhanced voting rights, alongside support from early investors to force a reconstitution of the board.

Better and Lewis have declined to comment on record.

With the company's financial position under pressure and shareholders watching closely, the dispute appears set to escalate through legal and governance channels in the weeks ahead.

What happened to ex-KTDA boss?

TUKO.co.ke recently highlighted the recent ruling in favour of Samuel Tiampati, the former CEO of the Kenya Tea Development Agency, who was awarded KSh 9.5 million for unfair termination.

This case underscores the complexities of corporate governance and the potential for wrongful dismissal in high-level corporate positions.

Moreover, Tiampati's story reflects a deeply unsettling reality, an abrupt shift in leadership that led to a series of contradictory decisions, ultimately culminating in a forced retirement that the court deemed illegal and unfair.

The emotional toll and public scrutiny surrounding such high-profile cases often resonate far beyond the boardroom, prompting discussions on the rights of employees in the face of corporate power.

Source: TUKO.co.ke

Reporting originally appeared via TUKO. Read the full source for additional context.