After engaging in one of the most brazen and delusional frauds in the history of history, former WeWork CEO Adam Neumann will get even more money as payment for leaving the criminal enterprise that he founded.
Whoever said that crime doesn’t pay has clearly never been funded by Softbank:
Nearly two years ago, SoftBank Group Corp. sought to part ways with WeWork co-founder Adam Neumann when it bailed out the shared-office company. It hasn’t been an easy divorce.
Securities filings from earlier this month show WeWork in February gave Mr. Neumann an enhanced stock award worth roughly $245 million, a benefit that wasn’t extended to other early shareholders and hasn’t been previously reported.
The deal was part of a renegotiation of the former chief executive’s giant 2019 exit package meant to end a long-running dispute between him and SoftBank and help clear the way for a public listing for WeWork, according to people familiar with the matter.
In addition, the final package gave him nearly $200 million in cash, let him refinance $432 million in debt on favorable terms and allowed an entity Mr. Neumann controls to sell $578 million in WeWork stock.
The filings also show how, after Mr. Neumann’s exit in the fall of 2019, WeWork took big losses as it sold off a number of companies acquired at his direction. It garnered just $164 million on 10 investments that were initially purchased for $759 million in cash and WeWork stock.
Executive-severance experts said the package stands out not only for its enormous size, but also given Mr. Neumann’s record. The valuation of WeWork, which he co-founded in 2010, fell to around $8 billion when he left from $47 billion in early 2019. In all, WeWork has raised more than $11 billion to build a company worth $7.9 billion, not including debt.
This guy should be sharing a cell with Martin Shkreli, not getting hundreds of millions more dollars in remuneration.
The man looted the company, and has been rewarded for this.
Something is very wrong with our society’s incentives.