WeWork’s co-founder and CEO Adam Neumann has faced criticism for his various ties with the company in the past, including having stakes in buildings that WeWork rented.
The company’s paperwork released Wednesday ahead of a planned initial public offering gives a closer look into the financial and familial links between Neumann, WeWork, and some of the banks the company works with.
To avoid possible conflicts, Neumann has agreed not to buy more properties that could be leased to WeWork.
The document also lays out unusual agreements with Neumann’s wife, Rebekah.
Read all of BI’s WeWork coverage here.
Adam Neumann, co-founder and CEO of The We Company, has been criticized in the past for perceived conflicts of interest between his investments and WeWork.
The company’s paperwork for its planned initial public offering shows that WeWork has taken steps to address the CEO’s entanglements when it comes to real estate, but it also shed light on Neumann’s other personal ties.
In January, the Wall Street Journal reported that Neumann had made millions by leasing a handful of buildings that he owns back to WeWork. At the time, a spokesperson said that all transactions involving WeWork executives go through a committee for review. These transactions were listed as a risk factor in Wednesday’s filing, which noted that Neumann bought the buildings “in order to help prove WeWork as a viable tenant to landlords.”
Going forward, WeWork said “our board of directors and Adam wanted to not only ensure the absence of any actual conflict of interest, but also avoid the appearance of any conflict of interest in relation to any of Adam’s personal real estate investments.”
To do that, Neumann agreed that WeWork’s real estate investment arm, ARK, will manage his stake in 10 properties, including the four …read more
Source:: Business Insider