Egan-Jones Examines Shareholder Verdict in Better Home & Finance Contest

The outcome changes board control rather than automatically returning founder Vishal Garg to the CEO role.

Rhea-AI Summary

Better Home & Finance (NASDAQ: BETR) confirmed on October 5 that shareholders approved a consent solicitation to reconstitute its board. Holders of a majority of outstanding shares consented to the Garg Group's solicitation, ending the contest and removing five of eight directors, including Interim CEO Daniel Lewis.

The reconstituted board now has five seats. The outcome does not itself reinstate founder Vishal Garg as CEO, and permanent leadership remains to be settled.

Key Figures

Shareholder consent: Majority of outstanding shares Directors removed: 5 of 8 directors Total shareholder return: 14% +1 more

Shareholder consent

Majority of outstanding shares

Consent solicitation outcome confirmed by Better

Directors removed

5 of 8 directors

Removal following the Garg Group's solicitation

Total shareholder return

14%

In the two years before Garg's departure; greater than any peer-group company

Stock decline

Approximately 53%

In the roughly five weeks after Garg's removal

Key Terms

consent solicitation, total shareholder return

2 terms

consent solicitation regulatory

"the outcome of the consent solicitation at Better Home & Finance"

A consent solicitation is a formal request sent to shareholders or creditors asking them to sign off on a proposed corporate change—such as altering governance rules, approving a deal, or waiving contract terms—without holding a full meeting. It matters to investors because it can quickly change their rights, voting power or the company’s direction, much like asking neighbors to sign a petition to alter a shared fence rather than discussing it at a community meeting.

total shareholder return financial

"Better's total shareholder return was 14%"

Total shareholder return is the overall gain an investor gets from owning a stock, combining changes in the share price plus any cash payouts like dividends, and assuming those payouts are reinvested in more shares. Investors use it like a single score that shows the true return on their investment—similar to checking both the growth of a savings account and the interest earned—to compare how well different companies or investments perform over time.

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NEW YORK, Oct. 28, 2026 /PRNewswire/ -- Egan-Jones released a commentary examining the outcome of the consent solicitation at Better Home & Finance (NASDAQ: BETR), where shareholders voted to reconstitute the board in favor of founder Vishal Garg. On October 5, Better confirmed that holders of a majority of its outstanding shares had consented to the Garg Group's solicitation, ending the contest and removing five of the company's eight directors, including Interim CEO Daniel Lewis.

Egan-Jones had recommended that shareholders consent FOR the solicitation in its September 15, 2026 research report. The two other leading proxy advisory firms sided with Better's incumbent board. The commentary gives three reasons for Egan-Jones' view: Better was executing a measurable turnaround under Garg, its strategy after his removal was the one he had been executing, and the board's process for removing him was unclear and inconsistent with its own conduct.

On performance, the commentary notes that in the two years before Garg's departure, Better's total shareholder return was 14%, greater than any other company in its peer group. Revenue rose quickly year after year, and earnings, while still negative, were steadily improving.

Egan-Jones observes that neither side disputed that Better's strategic direction stayed the same under Lewis, which made the contest about execution rather than strategy. Several wins that management cited, including a completed Credit Karma home equity partnership, were built and announced under Garg.

The commentary also questions the board's process. Garg was terminated the same morning the board was reportedly celebrating the Credit Karma partnership. In the roughly five weeks after his removal on August 3, Better's stock fell approximately 53%, underperforming every peer in the comparison group, and several senior leaders left.

The outcome does not by itself reinstate Garg as CEO. Its practical effect is a reconstituted board, now cut to five seats, that can draw on Garg's product and strategy expertise as the company settles its permanent leadership.

Egan-Jones concluded that shareholders would be better served by a board that restored Garg's influence over the company's direction, and a majority of Better's shareholders reached the same conclusion. With the contest settled, the focus shifts from governance to execution.

About Egan-Jones Proxy Services
Egan-Jones Proxy Services provides independent proxy voting analysis, recommendations, and reporting for institutional investors.

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SOURCE Egan-Jones Ratings Co.

FAQ

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What was the outcome of Better Home & Finance's shareholder consent solicitation?

Holders of a majority of outstanding shares consented to the Garg Group's solicitation, as Better confirmed on October 5. The outcome ended the contest and removed five of the company's eight directors, including Interim CEO Daniel Lewis. The reconstituted board now has five seats.

Does Better Home & Finance's shareholder vote reinstate Vishal Garg as CEO?

No. The consent solicitation outcome does not itself reinstate Vishal Garg as CEO. It reconstitutes the board while the company's permanent leadership remains to be settled.