Better's Leadership Fight
Former Better CEO Vishal Garg Seeks Return Amid Boardroom Battle at Critical Juncture for Company
Vishal Garg, founder of Better Home & Finance, is fighting to get his job back after the company's board removed him as CEO earlier this month, according to cleveland.com. The board replaced him with investor Daniel Lewis at a moment when Garg says the mortgage company was on the edge of a financial turnaround.
The shake-up puts Better at a crossroads. The company has struggled since going public and is trying to convince investors it can survive, masslive.com reported. Garg's ouster adds fresh uncertainty to that effort.
Garg Says Board Pulled the Plug Too Soon
Garg argues the board acted at the worst possible moment. He says Better was close to turning a profit when directors voted him out. He claims his replacement, Daniel Lewis, won over board members and company leaders by saying he supported Better's existing strategy before joining the board, according to lehighvalleylive.com.
Garg has proposed a deal to sweeten his return. He offered to work for a nominal salary — essentially next to nothing — until Better reaches profitability. He also said he would step aside for a longer-term leader once the company stabilizes, silive.com reported.
AI Bets Were Starting to Pay Off, Garg Claims
Garg points to Better's investments in artificial intelligence and automation as proof the company was heading in the right direction. The technology was designed to speed up the mortgage approval process — cutting the time and cost it takes to get a home loan approved, according to al.com.
Mortgage companies that move faster and cheaper have an edge in a tough market. Garg built his case around that idea. He argues that pulling him out now throws away the progress Better made building those systems, cleveland.com reported.
Daniel Lewis Steps In as Boardroom Battle Heats Up
The board chose Lewis, an investor with ties to the company, to take over as CEO. Garg's camp sees this as a betrayal. He claims Lewis built trust with directors by backing Better's strategy — then used that trust to take the top job, according to masslive.com.
Neither the board nor Lewis has publicly responded to Garg's account of events. The power struggle leaves Better in a difficult spot. Investors are watching closely as the company tries to prove it can become profitable in a housing market still pressured by high interest rates, lehighvalleylive.com reported.
Better's Survival Hangs on What Comes Next
Better went public through a SPAC — a shortcut listing deal — and has faced heavy losses since. The company laid off thousands of workers in 2022 and 2023, slashing its workforce as rising interest rates crushed demand for mortgages, silive.com reported.
The boardroom fight now puts the company's recovery plan in question. Whoever leads Better will need to move fast. The mortgage market is competitive, and investors have little patience left. Garg is betting the board will see his return as the safest path forward, according to al.com.
Sentiment
NeutralPublishers
5
Articles
4
Reach
5
