Full Breakdown
Vishal Garg Secures Shareholder Backing to Oust Better.com Board
By Drooid · · How we work
Core Event: Shareholder Consents Reach Majority Threshold
Vishal Garg’s investor coalition, The Garg Group, announced that written consents covering more than 51 % of Better Home & Finance’s voting shares have been filed. If the company accepts the consents as valid, the coalition could remove interim chief executive officer Daniel Lewis and four directors—Harit Talwar, Bhaskar Menon, Arnaud Massenet, and Prabhu Narsimhan—and install new leadership.
Background & Context
Better Home & Finance (trading as Better.com) is a New York-based digital mortgage lender. The firm’s market value has fallen from the $7.7 billion valuation announced in its 2021 SPAC deal to roughly $200 million–$230 million. Garg, the founder and former CEO for about 11 years, was removed by the board in early August after concerns about his “judgment, temperament and credibility.”
Timeline
- July 27 – Garg nominated investor Daniel Lewis to Better’s board.
- Early August – The board voted to remove Garg and installed Lewis as interim CEO.
- Late September (Wednesday) – The Garg Group filed written consents claiming a majority of voting power.
Data & Statistics
- Voting support: Consents represent over 51 % of voting shares; an earlier filing indicated a little more than 45 %, a discrepancy the group attributes to a miscalculation involving convertible options.
- Share price reaction: Better’s stock rose from $10.38 at market open to $12.25 by mid-morning on the day the consents were disclosed.
- Cost-saving target: The comeback plan calls for annual savings of $45 million–$60 million.
- Growth goals: Scale home-equity line-of-credit production to $2 billion in quarterly combined volume and complete the sale of the UK banking operations.
- Stock buyback: A $30 million buyback program is proposed, beginning with an initial $10 million tranche pending board approval.
Official Statements & Responses
- Garg’s attorney, Alex Spiro of Quinn Emanuel, said the outcome is “unprecedented” and that “Vishal Garg has been vindicated.”
- A Better spokesperson declined to comment on the shareholder filings.
- The company is pursuing a separate lawsuit in Manhattan federal court alleging securities-law violations tied to the shareholder campaign; Garg has denied any wrongdoing.
Criticism & Opposition
- Daniel Lewis, the interim CEO, called the board’s decision to remove Garg a “coup” and said, “All the love died when the diligence began.”
Conflicting Reports & Gaps
- The Garg Group’s claim of controlling just over 45 % of voting power was later revised to over 51 % after a recalculation that excluded certain convertible options. The precise composition of the voting bloc remains unsettled pending formal acceptance by Better.
- No court ruling has yet determined whether the consents satisfy legal requirements for a board change, leaving the ultimate outcome uncertain.
Verbatim Quotes
- “This is a resounding victory for Better’s shareholders, customers and employees, who all participated in organizing the resistance to the coup led by Daniel Lewis and the incumbent board,” — Vishal Garg, co-founder
- “No public CEO has ever been pushed out, litigated the issue, and won his way back in two months,” — Alex Spiro, Garg’s attorney
What’s Next
- Better must formally acknowledge the proxy results before any board restructuring can proceed.
- The Garg Group plans an informal conference call with shareholders on the Monday following the announcement to discuss implementation details.
- The coalition has named Bing Gordon and Steve Sarracino as prospective interim CEOs pending board approval.
- Legal proceedings in Manhattan federal court concerning alleged securities-law violations will continue alongside the corporate governance dispute.