With every little thing that has gone down at Higher.com over the previous 18 months, many people are scratching our heads in surprise that CEO Vishal Garg stays employed.
On December 10, workers of the digital mortgage lender have been notified by way of e mail by the Higher board of administrators that Garg could be taking day off, efficient instantly, after the “very regrettable occasions over the past week.”
The transfer got here, in accordance with an worker who wished to not be named, after the digital mortgage firm employed a disaster agency earlier that week. For these of us following the drama, it was not a shock.
However what’s a shock is that Garg has not been requested to step down altogether. Some surmised that he had super-voting shares and thus may vote to maintain himself within the position of CEO regardless of what others voted. However after digging into the S-4 filed by Higher.com’s SPAC accomplice, Aurora Acquisition Corp., in November, we realized that’s not the case.
In keeping with the submitting with the U.S. Securities and Trade Fee, “entities affiliated with the Higher Founder and CEO, Mr. Vishal Garg, will beneficially personal roughly 17.5% of our excellent frequent inventory as a complete, however will management roughly 22.7% of the voting energy of our excellent frequent inventory.”
To make sure that we weren’t undercounting his voting energy, we additionally examined the shares that Garg has from unexercised choices. Counting these, and bearing in mind totally different voting rights hooked up to numerous share courses, it doesn’t seem that the erstwhile CEO has the flexibility to dam his elimination because of full voting management.