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OpenWeb, the Israeli software company valued at US$1.5 billion, reportedly finds itself in a leadership dispute. The startup famous for its platform encouraging healthy discussions for publishers and their communities, has found itself at the center of a high-stakes conflict between its outgoing CEO, Nadav Shoval, and its newly appointed chief executive, Tim Harvey.
The drama unfolded on Tuesday when Tim Harvey, who served as the chairman of the board, took to the stage at an all-company Townhall to declare that he was taking over the CEO mantle. That was when most others were also said to have learned the news for the first time, including Shoval, who was leading OpenWeb with a lot of passion and vision since its founding days. According to Shoval, this moves by the board to appoint Harvey breaches his contract and hurts the interests of the company.
In an email to employees, Shoval expressed his frustration and disbelief at the board's decision. He accused the board of "falsely stating" his departure and acting against the company’s best interests. Shoval’s email stated, “I will continue relentlessly fighting for OpenWeb's mission and purpose. I notified the Board that they breached my contract, which was intended to directly call out their concerning conduct. Instead of addressing these issues, the Board decided to move forward with an attempted leadership transition, continuing to act against OpenWeb's best interests.”
To that effect, Tim Harvey sent a separate email to the staff to explain all the confusion and to apologize for what transpired. He insisted that the transition at the level of the CEO was planned and that it was going to be carried out with respect toward the parties. Harvey wrote, “Apologies to whoever got this email, we are proceeding with the planned transition process for the CEO role. As we move forward, we will make sure this transition is as respectful as possible to all parties involved and appreciate their involvement with OpenWeb.
In its statement, OpenWeb recognizes Shoval as the company's founder and a critical force, and brings on board Harvey as "interim CEO." The statement outlines Harvey's broad experience and reassures that the company will continue on its growth path.
