Vishal Garg, the Indian-American entrepreneur who gained notoriety for firing 900 employees via a four-minute Zoom call, has been removed from his position as chief executive of digital mortgage firm Better Home & Finance. The company's board voted unanimously to terminate Garg, citing serious concerns regarding his “judgment, temperament and credibility.”
Garg Alleges Boardroom Coup
Garg is not accepting his ouster quietly. He claims he was blindsided by a “boardroom coup” just as the struggling mortgage lender was on the cusp of a financial recovery. He has accused newly appointed board member Daniel Lewis of orchestrating his removal, telling CNN, “He hoodwinked me.” Garg alleges Lewis used a calculated charm offensive to gain confidence and maneuver into the top job, believing “the board made a mistake.”
Company's Turbulent Financial Journey
The abrupt leadership change comes at a critical time for Better Home & Finance. After experiencing a boom during the pandemic, which propelled its valuation to approximately $8 billion, the company faced significant challenges due to skyrocketing mortgage rates. Annual sales plummeted from $1.5 billion in 2021 to $70 million in 2023.
Despite these struggles, Garg contends the business was finally turning around. He projected revenues to reach $200 million this year, attributing the anticipated growth to AI-driven mortgage processing and strategic deals. “We're winning. We've tripled loan volume. We're close to profitability,” Garg stated.
Fight for Reinstatement
Though stripped of his executive duties, Garg remains a member of Better's board. He asserts that he holds substantial voting leverage alongside early backers and is determined to force a comeback. To spearhead his efforts, he has retained high-profile attorney Alex Spiro and issued a formal demand to the board for his immediate reinstatement.
In a dramatic bid to demonstrate his commitment, Garg has offered to return to the company and work for a salary of just $1 per year until Better Home & Finance achieves profitability. He promises to step aside once that milestone is reached. “It's an acknowledgement that I've been doing this for 10 years, but execution hasn't been perfect,” Garg admitted, expressing hope for a resolution and a bright future for the company.