According to the company’s board of directors, Austin Russell, who became a billionaire after Lidar’s startup Luminar was released, appears to be out as CEO.
Luminar’s board of directors announced Wednesday that it was the same day in its first quarter income report. It replaced Russell and appointed Paul Rich to the role. Rich is Nuance’s former chairman and CEO.
The press release states that Russell has resigned as president and CEO and has resigned as chairman of the board. The board said in a press release that the resignation followed the code of business behaviour and ethics investigations of Luminar’s board’s audit committee. Russell will remain on the board and “available to the next CEO on transition and technology issues,” according to the release.
However, it is not clear whether Russell was kicked out or if he was willing to resign. Russell could not be reached for comment. The board did not provide details of this ethical investigation except that it “does not affect any of the company’s financial results.”
With a further twist, the company’s revenue report and slide presentations do not mention changes in leadership. The first quarter press release also includes a bright statement from Russell, which outlines the company’s strategy to reduce costs with new Halo products.
“In a world of macro uncertainty and adversity, as evidenced by today’s announcement, we are firing all cylinders to increase production, reduce costs and take advantage of the future,” Russell said in a statement. “This will use a unified product platform to launch new sales plans for Luminar, enabling radical focus and streamline the business, and unlocking value across the organization.”
Meanwhile, a press release from the board of directors tells a different story.
“We look forward to announce Paul as our next CEO,” Director Matt Simonsini said in a statement. “His track record speaks for itself. He is a visionary leader with a rare combination of technical insight and operational excellence. His commitment to innovation, his ability to expand the organization, and his instinct to predict where technology is heading will make him the ideal person to lead us into the next chapter of growth.
Simonici, who retired as Leah’s CEO in 2018, also includes Jun Hong Heng, chairman of the board’s audit committee and founder and chief investment officer of technology investment firm Crescent Cove Advisers.
Luminar entered the self-driving car scene in April 2017 after being stolen from its secrets for many years. Russell, who was 22 at the time, entered the spotlight and became a success story for Silicon Valley. Luminar was founded by Russell in 2012, but it will take years for his company to become publicly known. He has worked on Luminar Technology as a fellow of Thiel. This led the young people to drop out of college and give them $100,000 over two years to pursue their ideas.
In 2021, Luminar merged with special purpose acquisition company Gores Metropoulos Inc., with a post-market market valuation of $3.4 billion. Luminar raised $250 million before the SPAC announcement.
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