Billionaire founder of Luminar replaced as CEO following ethics inquiry

Summary

Austin Russell, who became a billionaire after his lidar startup Luminar went public, appears to be out as CEO, according to the company’s board. Luminar’s board announced Wednesday — the same day of its first-quarter earnings report — it had replaced Russell and appointed Paul Ricci to the role. Ricci is the former chairman and CEO of Nuance. The press release states that Russell resigned as president and CEO and as the chairperson of the board, effective immediately. The board said in the press release the resignation followed a code of business conduct and ethics inquiry for the audit committee of Luminar’s board. Russell will remain on the board and be “available to the incoming Chief Executive Officer on transition and technology matters,” according to the release. A day after the leadership change was announced, board member Jun Hong Heng also resigned, according to a regulatory filing, which stated his decision was not due to any disagreements with the company on any matter relating to the company’s operations, policies, or practices. It’s not clear if Russell was forced out or if he resigned willingly. Russell could not be reached for comment. Heng could not be reached for comment. The board did not provide further details of this ethics inquiry except that it “does not impact any of the company’s financial results.” In a further twist, the company’s earnings report and slide presentation makes no mention of the change of leadership. The first-quarter press release even includes an upbeat statement from Russell that outlines the company’s strategy to drive down cost with its new Halo product. “In a world of macro uncertainty and adversity, we’re firing on all cylinders to ramp up production, ramp down costs, and capitalize on the future, as evidenced by our announcements today,” Russell said in the statement. “This kicks off our new operating plan for Luminar with a unified product platform, enabling radical focus and streamlining of the business, as well as...