Not Enough Bullets

After running a transparent scam, and engaging in some of the most egregious self-dealing that has not ended up inside a criminal court ever, Adam Neumann’s looks set to make millions more in addition to his $1.6 billion payout from Softbank to eject him from WeWork:

WeWork co-founder Adam Neumann, who left the lossmaking office-space provider with a $1.6bn exit package, could earn hundreds of millions of dollars more under an agreement struck with the company and its top shareholder in October, according to documents reviewed by the Financial Times and people briefed on the matter.

The deal revised the terms of a class of shares held by Mr Neumann — known as profits interests — that were created by the company’s complex restructuring this year and had little value after plans for a WeWork initial public offering fell apart.

But a future flotation — even at a valuation significantly lower than the company was seeking this summer — could result in Mr Neumann receiving hundreds of millions of dollars if he sells the stake.

In October, a month after Mr Neumann stepped down as chief executive, he agreed with WeWork and SoftBank, its biggest investor, to forfeit some of his profits interests, while receiving improved terms for his remaining stake, positioning him for future gains.

Seriously, if we have the space in prisons to lock up some low level junky for decades, why can’t Neumann get a couple of years?

Leave a Reply