WeWork's chairman said Adam Neumann 'may have violated' the terms of his $185 million consulting contract with his former company, and that it's is no longer in effect
Summary List Placement
When WeWork co-founder Adam Neumann stepped down as CEO last September amid a string of controversies, he landed a massive exit package from WeWork investor SoftBank, which took over the embattled company, that included a $185 million consulting deal. But Neumann may have invalidated that contract after he "may have violated" its terms, WeWork executive chairman Marcelo Claure suggested Monday during a virtual event hosted by The Wall Street Journal. "I don't think that consulting agreement is still in force," Claure said, according to The Wall Street Journal, adding: "I think Adam may have violated some of the parts of the consulting agreement, so that's no longer in effect." Claure, who is also the COO, executive vice president, and a board director at SoftBank, didn't say which terms Neumann allegedly breached because it relates to an ongoing lawsuit over Neumann's exit package, but added that the former WeWork CEO and chairman had been "incredibly helpful" when SoftBank stepped in to rescue WeWork, The Wall Street Journal reported. WeWork, SoftBank, and a spokesperson for Neumann did not respond to requests for comment on this story. Neumann's exit package also included the option to sell up to $970 million of WeWork stock to SoftBank as well as a $500 million credit line, but Neumann sued the Japanese bank in May for backing out of the stock purchase agreement, claiming that SoftBank and Claure amended the deal without his permission in late December. Read more:Adam Neumann sues SoftBank for backing out of buying nearly $1 billion of his WeWork shares, saying the investor changed up the terms and he didn't sign off SoftBank took the reins of WeWork in October 2019 following Neumann's failed attempt to take the company public in a deal that involved Neumann's resignation, a fresh $5 billion investment, buying back up to $3 billion of stock, and acquiring around 80% of the real estate startup. WeWork, only months before privately valued at $47 billion, had seen its valuation plummet more than 80% amid multiple controversies surrounding its finances, governance, and a toxic culture fueled by Neumann's leadership style.Join the conversation about this story » NOW WATCH: How NASA strategically paints its vehicles for space
More like this (3)
SoftBank is backing out of its plan to buy $3 billion of WeWork shares, including nearly $1 billion from former CEO Adam Neumann
SoftBank is abandoning its plan to buy $3 billion worth of WeWork shares from other investors...SoftBank is abandoning its plan to buy $3 billion worth of WeWork shares from other investors and employees, including some $970 million worth from company cofounder Adam Neumann. The move likely means WeWork itself won't be able to tap into a $1.1 billion credit line from SoftBank. The share purchase effort and credit line were part of the WeWork rescue package SoftBank announced last...
A former WeWork employee is suing over Adam Neumann's $1.7 billion golden parachute | Markets Insider
A former employee is taking WeWork to court over cofounder Adam Neumann's reported $1.7 billion golden...A former employee is taking WeWork to court over cofounder Adam Neumann's reported $1.7 billion golden parachute. Natalie Sojka's lawsuit accuses Neumann and other WeWork directors of benefiting themselves at the expense of minority shareholders as their actions have "eviscerated" the value of WeWork stock and stock options. "It is beyond comprehension why Neumann would be paid $185 million to provide strategic guidance to...
SoftBank will reportedly give former WeWork CEO Adam Neumann $1.7 billion as part of a bailout...SoftBank will reportedly give former WeWork CEO Adam Neumann $1.7 billion as part of a bailout plan for the office rental startup, according to The Wall Street Journal. The report of Neumann's windfall drew a strong reaction from current and former WeWork employees as well as industry experts. Aaron Levie, the CEO of Box, poked fun at the absurdity of Neumann's golden parachute, with...