Better Rejects Vishal Garg's Bid for Control

Better Home & Finance Holding Co. on Friday formally opposed former CEO Vishal Garg's attempt to reclaim leadership of the company, presenting a case against his return based on a history of underperformance and alleged attempts to unduly influence the board. The company's board of directors, in a unanimous decision excluding Garg, had previously removed him as CEO due to significant concerns regarding his "judgment, temperament and credibility." These concerns were underscored by the company's cumulative GAAP net losses exceeding $1.5 billion since 2022 and a drastic decline in its stock price, which fell by over 90% during Garg's tenure as CEO. This formal pushback follows a recent announcement on March 11, 2024, that board member Daniel Lewis would step in as interim CEO, a move Garg publicly contested, asserting his continued status as Better's founder, a board director, and its largest voting shareholder. Garg had previously projected profitability by late 2026, but Better's second-quarter 2026 earnings revealed an adjusted EBITDA loss of $14 million, marking the eleventh consecutive quarter of financial losses. Garg's renewed bid for an executive role was announced on Thursday evening, accompanied by his retention of attorney Alex Spiro. In a letter addressed to the board, Garg proposed the resignation of five directors, which Better stated would effectively transfer company control back to him. His proposal also included a commitment to work for a nominal salary of $1 until Better achieves profitability and a plan to repurchase $30 million of the company's stock, with $10 million to be executed within the first five trading days. Ryan Grant, president of NEO Home Loans powered by Better, characterized Garg's proposal as mere "noise" and part of a larger "battle to control the board." The escalating conflict was further highlighted by Better's press release detailing an incident earlier in the week where Garg allegedly refused to sign essential representation letters required for Better to submit its quarterly Form 10-Q filing on time. The company attributed the delay in its filing solely to Garg's refusal, interpreting this action as a strategic maneuver to "extract self-serving concessions" from the board.