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Vishal Garg Wins Board Control at Better.com

Bloomberg Markets •
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Better.com founder Vishal Garg has secured enough shareholder support to remove five board directors after a proxy challenge, according to people familiar with the matter. Garg, who was ousted as CEO in August, remains a board member and sought written consent to regain control. His proposal received over 51% of the required support, enabling him to pursue removal of interim CEO Daniel Lewis, board chairman Harit Talwar, and other directors.

Garg plans to keep himself and two allies on the board and fill vacancies with his chosen nominees, including Bing Gordon of Kleiner Perkins and Steve Sarracino of Activant Capital. He intends to appoint a mortgage industry executive from a top advisory firm as interim CEO, replacing Lewis. The company reported a net loss of $30.6 million in Q2, a 16% improvement year-over-year, while shares have fallen 82% over the past year to close at $10.23, giving Better.com a market capitalization of $194 million.

A company representative declined to comment on the developments.