Adam Neumann

Adam Neumann’s $1.7 billion golden parachute could be slashed as SoftBank bosses seek to trim the $9.5 billion rescue deal they struck with WeWork last month, according to Bloomberg.
Some SoftBank executives have said Neumann’s leaving package — which reportedly includes $970 million from stock sales to SoftBank, a $500 million credit line, and $185 million in consultancy fees over four years — is too generous.
WeWork laid off 2,400 people or about 20% of its global workforce this week, and a former WeWork employee is also suing over Neumann’s departure deal.
For more WeWork stories on WeWork, click here.

Adam Neumann’s $1.7 billion golden parachute could be slashed as SoftBank bosses seek to trim the $9.5 billion rescue deal they struck with WeWork last month, according to Bloomberg.

WeWork’s cofounder and former CEO was set to sell up to $970 million worth of company stock to the Japanese conglomerate as part of a $3 billion tender offer, receive a $500 million credit line to cover his personal debts, and rake in $185 million in consultancy fees over four years.

However, some SoftBank executives have said his leaving package is too generous, Bloomberg reported, citing people familiar with the talks.

SoftBank’s tender offer was scheduled to begin more than two weeks ago on November 6, The Real Deal reported. The company is speaking to banks about a 300 billion yen ($2.8 billion) joint-financing deal to fund the stock purchases, as a well as a credit line. However, MUFG Bank and Sumitomo Mitsui Banking — two of its biggest financiers — are calling on SoftBank to cut costs and flog assets to turn WeWork around rather than borrow more, Nikkei Asian Review reported this week.

Optics could be another factor. WeWork laid off 2,400 people or about 20% of …read more

Source:: Business Insider

      

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