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MongoDB CEO resigns "effective immediately" to join Meta, stock drops 20%

https://www.reuters.com/technology/mongodb-ceo-desai-steps-down-lead-metas-enterprise-platform-2026-09-28/
66•diek•1h ago

Comments

Insanity•1h ago
Interesting choice, his prior experience doesn't seem AI related yet he's going to lead an AI strategy at Meta?
bombcar•50m ago
At least it’ll be Webscale.
dagmx•49m ago
Meta’s chief AI officer is a 29-30 year old who was acquihired as part of his data labelling company. He’s not a model developer.

Meta hires in strange ways. I’m convinced it’s more about your sales pitch going in.

Pxtl•18m ago
MongoDB is the textbook success of "Zero friction and slick marketing beats good engineering discipline" that is the AI froth right now.

From a technical standpoint? Very different. From a marketing standpoint when selling to software-development clients? Same space.

saalweachter•12m ago
Yeah, glancing at headlines this is basically "MongoDB is a company with a lot of experience selling to enterprise clients (and by extension the CEO knows how to run such a company), Meta wants to sell enterprise clients their AI offerings".

Which is like, not as weird as most AI company headlines, to be honest?

Pxtl•8m ago
Not just that, they're also kinda similar value proposition, in that it's "holy crap look how fast you can develop code if you just ignore all of the longer-term risks you're creating".

Both AI and Mongo can be used for good and quality code but that's not how they get sales.

htrp•53m ago
Facebook going to be selling Muse into your company as your AI coworker
12982712•50m ago
Finally we'll get authentic webscale AI.
1123581321•47m ago
Does Muse support sharding?
baby_souffle•19m ago
Yes but only when using /dev/null for backing the shard storage layer
mshockwave•23m ago
in case anyone who doesn't get the reference: https://youtu.be/b2F-DItXtZs?si=gxrqufTAy-YQ88wW
fred_is_fred•47m ago
I've always wanted model sharding.
fred_is_fred•45m ago
As a non-joke question - I am surprised a CEO can do this. Wouldn't there be contract terms about notice period, orderly transition etc?
next_xibalba•43m ago
Likely anything that goes beyond missing out on compensation (ex: unvested RSUs) or even clawing back some comp would violate labor laws. CEOs are still employees, and legislation regulating employer-employee relations trumps all contracts.
jtwaleson•37m ago
There are many many instances where the CEO is not an employee, but they operate via their own legal entity. To be honest I don't know how this works at larger companies.
Onavo•33m ago
A contractor CEO? I know it is extremely common for directors to be contractors for tax reasons.
kiicia•28m ago
it simply works, that's how you optimise tax on million+ sums, do you think ceo-s pay taxes on par with regular workers?
SkyPuncher•19m ago
I have never heard of this. Do you mind sharing some examples?
LoganDark•45m ago
I wonder if people like this actually try to get into the company, or if they just got a very attractive offer instead?
sulam•20m ago
So when you say "try", it's not like he was leetcoding on the side or anything. The way roles work at this level is a combination of network, exec recruiters, and eventually you talk comp. I hate to stereotype, but I'm going to assume in this case that there is someone senior at Meta that he is strongly connected to who referred him in. And by "referred him in" I don't mean submitted his name to some recruiter, I mean informing him the role even existed and making sure he was on the short list of consideration. Often this person is even the hiring manager, these are not roles you just let the recruiting pipeline fill with any person who fits the screening profile.
LoganDark•9m ago
By "try", I mean there's a difference between applying and getting accepted, and getting an offer out of the blue. They've sent out some unsolicited offers before, and poached some executives that way, so that's why I ask.

You're right though that the process in practice can be more fuzzy (e.g., you weren't looking, but heard of an attractive opportunity and then applied that way).

spicybright•41m ago
People still use MongoDB?
giancarlostoro•36m ago
MongoDB is not a bad database, it is not my first immediate choice for everything, but it is very easy to get into, super easy to prototype with. My biggest pet peeve is how it handled indexes, shoves it all into memory. That and how people use it sometimes bewilders me.

Two fun facts: ObjectID's are like Discord snowflakes: you can get a timestamp of when they were generated, you can also generate them client side, so you can filter items in a collection by when they were created.

The other one, that I always enjoyed is, you can take an existing ObjectId, and reinsert it into another document, you dont have to nest all your data, you can go kinda sorta relational about it.

Used it at a previous job, the first project could have just used a SQL db but because the person who made the intial one tried to do NoSQL using something in the cloud, they migrated it to MongoDB to keep it simple and consistent. The second project, well, we really discovered all the limits if you aren't Google with unlimited server memory available, like indexing as I mentioned. MongoDB pipelines are probably my favorite feature on the other hand.

Salgat•27m ago
MongoDB's biggest weakness was its default settings, which made it insecure and very vulnerable to data consistency failures. An absolute nightmare for PR. It's not perfect, but it's comparable to other NoSQL databases now.
zdragnar•13m ago
Their biggest weakness was that their marketing promised way, way more than they could deliver.

Aphyr's original examination [0] took them to task so much so that I always think of it as the start of the "end", at least of the "web scale" obsession.

[0] https://aphyr.com/posts/284-jepsen-mongodb

jmclnx•31m ago
>Desai led product and engineering at Cloudflare

Well, this could end meta :) Once I get the Cloudflare prompt I bail assuming the site does not what me to read their content.

Yes, the number of sites I go to is decreasing daily, but gopher, gemini and USENET is still around and seems to be slowly growing.

general_reveal•31m ago
I mean, Mongo is to be a $600 dollar stock imho. You see, the amount logs AI creates or intermediary text storage it creates is just stunning. Nice entry for leaps. Plus, Mongo swiftly added their vector db too. It’s a obvious play.

I wonder if they’ll pair him with another acquisition like Porcupine. META has now realized how much money there is in selling a picks and shovels (as we see with Muse Spark).

abhirajabhi312•30m ago
So turns out nosql is no place for "structured" role like ceo.
everfrustrated•28m ago
"effective immediately" means either... he doesn't have a contract with a notice period, or he does and is willing to forfeit any benefit from it like share options, etc.

One reason might be the share price has collapsed and he has no confidence in it coming back (pretty scandalous if he's the CEO!), or Meta has offered him inducements > what he's walking away from.

Good way to burn a lot of bridges. He's never going to be hired as CEO by anybody for the rest of his career.

dingdingdang•24m ago
> He's never going to be hired as CEO by anybody for the rest of his career.

Maybe he had enough.

b112•19m ago
He's never going to be hired as CEO by anybody for the rest of his career.

I wish I had your belief in sensible logic like that.

But I suspect you're wrong, even though you shouldn't be.

orsorna•19m ago
>He's never going to be hired as CEO by anybody for the rest of his career

I'd eat my shorts if this was true. But even then he is likely set for life with his wealth, pre Meta offer.

reticulates•17m ago
The halo effect of being in the orbit of a product on the way up (as Muse appears to be) can offset almost any wrong. If Muse succeeds, he could get a CEO job anywhere he likes.
Dylan16807•25m ago
Isn't MongoDB relatively stable? I can't think of why it would need any particular CEO, and an executive moving to a company that burns money for fun doesn't say much about their previous job. So why the huge stock drop?
Pxtl•21m ago
Probably just because it reminded everybody that MongoDB exists as a corporate entity and everybody is re-evaluating investment in "Open Core" products where the paid value-add is consultancy because learning to us the product is so difficult, since LLMs for all their faults are good at "how do I use this hard-to-learn tool?"

"Hey the MongoDB guy left, is MongoDB okay?.... wait, no, of course it isn't. It's in that space that is completely screwed."

smt88•18m ago
Stock prices have nothing to do with business performance anymore
bko•25m ago
CEO leaves, stock market value drops ~$6.5B

One interpretation is that senior leadership (e.g. CEO) matters a lot. But it flies against the idea that CEOs are overpaid. From a quick search, it looks like his total stock comp was ~$52m which was a bargain considering his departure cost the company billions. Perhaps he would not have left if he had a higher pay, more in line with the value the market ascribes to him.

However I imagine those that are upset about CEO pay will find this unconvincing. Is there any other way to interpret this?

redorb•24m ago
ole Zuck just buying what he wants - for any price, cause that is what the richest in the world can do? Also using the market cap / paper valuation isn't aligned with 'actual value' imo.
AnthOlei•23m ago
How much of the drop do you think is due to the bearish nature of ceo departure? One would have to assume that if the company was going to go gangbusters the ceo would stay.

In short: is it this particular CEO who is that valuable? Should I pay 100m to some Joe off the street since I know they will stay put?

bko•18m ago
Zuck probably outbid him. He walked away from $30m unvested. If they paid him more, he likely would have stayed and the stock wouldn't drop $6b

CEOs leave all the time. Average tenure has dropped over the years suggesting a fierce competition for senior talent

rozap•20m ago
Just because the market reacts to a piece of information to the tune of 6B, doesn't mean the guy is providing 6b of value. It's just a piece of information and the market reacts to what it may or may not mean. Any other goober with an MBA in that role who quits with no notice may induce the same market reaction, even if they were a shit ceo.
joduplessis•24m ago
Ah, I miss the days of NoSQL vs. SQL debates.
d2kx•21m ago
But is MongoDB's stock web scale?
hedgehog•17m ago
Because there might now be people on this site literally born after that fad: https://www.youtube.com/watch?v=b2F-DItXtZs
davidw•8m ago
I wish he'd make more videos - they were really funny

https://www.youtube.com/@gar1t/videos

mikert89•19m ago
I still think regular people, and markets, have not caught onto the implications of superintelligence. Its happening, and the tech oligarchs have seen it behind closed doors
drivebyhooting•12m ago
I think so too.

Just now in 2026 we start to see glimpses of AI supremacy, e.g. navier stokes.

It’s similar to the deep blue moment. It took a while before consumer hardware could beat Kasparov, but the watershed moment was deep blue.

I reckon some private demos using far more compute than is available to us peasants convinced the tech oligarchs 3 years ago to pursue their seemingly coordinated AI push.

shimman•1m ago
Yeah, it's definitely this and not that Meta probably offered him a salary package that ensures generational wealth measured in centuries. Definitely the science fiction scenario, that is totally the realistic one and not a greedy wealthy CEO doing something that enables their greed.
calderwoodra•11m ago
Anecdotally, I've seen a surprising number MongoDB employees applying to our job listings for the last 6-9 months (enough to feel like a trend).
xnx•11m ago
TIL MongoDB is a publicly traded company.

I can't imagine the future is bright for MongoDB as AI makes it much less painful to move off of legacy and/or overpriced software.

Hasz•7m ago
Oracle is still making a very, very healthy amount of money on legacy db products. Momentum is a very powerful thing.
rcxdude•32m ago
A lot of these labor laws get less protective for higher-ranked people in a company, whether it be due to thresholds based on compensation or explicit carve-outs for executives/board members. It varies a lot from place to place.
neom•9m ago
In the US, there is only one labor law that is different for execs and high paid employees and that is overtime rules. Fiduciary duty does govern how a director or officer behaves while in the role, loyalty, no self-dealing, no stealing corporate opportunities etc. It doesn't oblige them to stay or dictate how they must leave.

In US and English law, "specific performance", so a court ordering you to do what you promised, isn't available for personal service contracts. In the US that's reinforced by the 13th Amendment's ban on involuntary servitude. So even if a CEO signed a contract promising 6 months notice and a smooth handover, the company can't make them do it, they can only enforce any financial penalties that are contracted.

roryirvine•15m ago
Yeah, notice periods are typical at that level even in the USA where they're not often used for the rank and file. A star candidate may have had sufficient leverage to negotiate them away, but I don't expect that to have been the case here.

Sometimes a new employer will offer compensation for any loss of stock options and/or to indemnify against any claim for breach of contract or similar.

But it could also be that Mongo have simply agreed to release him - he was only there for 10 months, and might not have turned out to be a great fit. Their share price has been more or less level in that time whilst competitors have been rising so it's not as if he had notable immediate success in boosting their appeal to enterprise customers.

vlyan•25m ago
poor souls stuck maintaining brownfield webshit developed during the height of mongo's marketing campaign 10 years ago.
d2kx•20m ago
MongoDB has been a good database for years.
stuckinaloop•5m ago
IIRC (from my time there) Stripe still uses MongoDB for it's main datastore.

https://stripe.dev/blog/how-stripes-document-databases-suppo...

john_strinlai
•
9m ago
>He's never going to be hired as CEO by anybody for the rest of his career.

just need to spin the departure as being decisive and able to make tough decisions and he'll be back in the ceo seat in no time. especially if muse does well.

mrits•7m ago
Not sure why he'd want to take the pay cut with being a CEO
bko•16m ago
If you think his departure won't impact the company, it looks like you're smarter than other investors and you get to buy MongoDB at a 25% discount. Also there's a job opening at the top spot, although you may be better suited as an investor with this kind of insight.
NoDodgeQuestion•7m ago
departure could also mean, private information about MongoDB problems that is not public, so I would not invest in MongoDB
gretch•18m ago
You made the assumption that it was fairly valued before and the loss was a "true" loss.

But possible it could have been over-valued before, unbeknownst to low-information external investors. After all, right now it as a PE of 450+. (Google PE is 17, Meta PE is 27, Tesla PE is 330)

The stock dropping on CEO departure had nothing to do with his personal performance, and everything to do with the information that he revealed on the way out. Why would the CEO leave a rising and successful company on the verge of innovation?

And thus tying it back to pay - people should be paid based on their output and their personal performance, not based on simply serving as a signal which any warm body can do. That said, I don't think truly amazing CEOs are overpaid, e.g. steve jobs of old.

ForHackernews•18m ago
> Is there any other way to interpret this?

Sure: Destructive actions have a lower bar than constructive ones.

My company doesn't pay me millions, but I were motivated to do so, I could probably cost my company millions. Similar principle here: regardless of whether the CEO is any good, simply by virtue of their position they can tank the stock by making wild moves that undermine confidence.

Imagine a generic human blob CEO with minimal VORP[0], you could swap him out with anyone else in the organisation and get the same results. But if he gets on twitter and announces, "This company is trash and I'm leaving this trash fire," he's going to cost them millions.

[0] https://en.wikipedia.org/wiki/Value_over_replacement_player

Dylan16807•17m ago
> However I imagine those that are upset about CEO pay will find this unconvincing. Is there any other way to interpret this?

I would argue that at most he's a signal about company value that people reacted to. Maybe the company lost 6 billion dollars in underlying value, but it wasn't from the CEO change itself.

john_strinlai•15m ago
>it looks like his total stock comp was ~$52m which was a bargain considering his departure cost the company billions.

this same things can happen with any employee at any company and does not bolster your argument.

a $10/hr worker flipping burgers can take actions that cost hundreds of thousands of dollars. burger king foot lettuce guy probably cost the company millions.

i could cause millions of dollars in damage this afternoon (i am not paid millions).

bko•6m ago
I don't think the CEO sabotaged anything or created legal liability causing the $6b drop. I think you're stretching here.
john_strinlai•5m ago
the point is that the amount of money you make is not really tied to the amount of many you can cause the company to lose (on purpose, by accident, by departure, etc.).

or, in other words, looking at the 6B loss and working backwards to say that the CEO was underpaid at 52MM is nonsensical

svpk•15m ago
Another reading is this: CEOs don't quit without notice [1], it's bad form and bad for both the company and for the reputation of the person leaving. Regardless of the value he as an individual was providing it speaks to substantial disfunction in the overall leadership of the company and a major lack of confidence from the person who presumably had the best idea of how the company was doing on the whole. The market suddenly learning those things resulted in a substantial market correction. It doesn't really matter whether he was a particularly good or bad CEO; the situation would indicate something is majorly wrong in either case.

1: Obviously exceptions will exist for unexpected major life events, etc.

Aurornis•4m ago
His compensation has nothing to do with this.

The stock dropped because it’s not a good sign when a company’s CEO abruptly leaves to be a not-CEO at another company. Doing it without a transition period is a wild signal.

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