The last major player in the entire Unity run-time fee fiasco, Marc Whitten, head of Unity CREATE (the division responsible for the Unity game engine) has announced his resignation. Marc was famously the person who stepped forward to apologize for the entire fiasco and may or may not have been the person ultimately responsible for the run-time fee in the first place (my guess is, he was not). At this point as fallout from the awful decision, the CEO is gone, the IronSource board members are gone and Unity have hired a new CEO, Mathew Bromberg. Marc Whitten was basically the final piece remaining from that entire ordeal.
In fillings with the SEC[PDF link] Marc’s resignation and terms have been revealed:
On May 13, 2024, Unity Software Inc. (the “Company”) announced that Marc Whitten will resign as the Company’s Chief Product and
Technology Officer, Create, effective as of June 1, 2024 (the “Transition Date”). Mr. Whitten will assist with the transition of his responsibilities
and has agreed to continue serving as an employee until he departs from the Company, effective December 31, 2024 (the “Resignation Date”).
In connection with his resignation and transition, the Company and Mr. Whitten entered into a resignation and transition agreement (the
“Agreement”), pursuant to which, from the Transition Date until the Resignation Date (the “Transition Period”), Mr. Whitten will serve as a
Strategic Advisor. Mr. Whitten will continue to receive his base salary and his previously granted equity awards will continue to vest during the
Transition Period. The Agreement also provides for a customary release of claims by Mr. Whitten.
In addition, Mr. Whitten will be entitled to the following benefits upon the Resignation Date:
- An extension of the post-termination exercise period of his vested stock options outstanding on the Resignation Date until the earliest to
occur of (i) three years following the Resignation Date, (ii) the applicable expiration date of the applicable award, or (iii) such earlier date
as provided or permitted under the applicable equity plan, subject to certain conditions described in the Agreement.- A lump sum cash payment in the amount of $200,000, less applicable state and federal payroll deductions, which is equal to twenty-six
weeks of his base salary.- A lump sum cash payment in the amount of $400,000, less applicable state and federal payroll deductions, which is equal to 100% of his
target bonus for 2024 under the cash incentive bonus plan.- A lump sum cash payment in the amount of $200,000, less applicable state and federal payroll deductions, for supporting the leadership
transition.- A lump sum cash payment in the amount of approximately $14,801, less applicable state and federal payroll deductions, which is
equivalent to six months’ payment for health care continuation costs.
If the Company terminates Mr. Whitten’s employment for “cause” (as defined in the Agreement) prior to the Resignation Date, Mr. Whitten
will cease to receive his base salary, and his equity awards will cease to vest on the date of such termination, and he will not be entitled to the
extended post-termination exercise period nor the cash payments described above. If Mr. Whitten resigns prior to the Resignation Date, he will
cease to receive his base salary and his equity awards will cease to vest on the date of such resignation; however, he will still be entitled to the
extended post-termination exercise period and the cash payments described above.
A copy of the Agreement is attached as Exhibit 10.1 to this Current Report on Form
One very interesting note from the filling is, it was signed by former CEO (and current board member) Jim Whitehurst, not the new CEO Mathew Bromberg. It may be that this was in the works for some time, or that Mr Bromberg hasn’t assumed his CEO duties yet.
With this departure, it represents pretty much a complete changing of the guard since the entire run-time fee disaster occurred. You can learn more about Marc Whitten’s resignation and the changes at Unity in the video below.