AP Photo/John Minchillo
- Sen. Elizabeth Warren blasted Adam Neumann’s $1.7 billion golden parachute.
- “WeWork is laying off 2,400 employees — while its founder walks away with a massive $1.7 billion golden parachute,” the Democratic presidential candidate tweeted on Friday. “This is another example of a rigged and corrupt system.”
- Neumann is poised to net up to $970 million by selling WeWork stock to SoftBank during a tender offer set to begin this week, Reuters reported on Sunday.
- He is also set to receive $185 million in consultancy fees.
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Sen. Elizabeth Warren has blasted Adam Neumann’s $1.7 billion golden parachute, criticizing the WeWork cofounder and former CEO’s lavish leaving package as the troubled coworking startup prepares to slash its global headcount by about a fifth.
“WeWork is laying off 2,400 employees — while its founder walks away with a massive $1.7 billion golden parachute,” the Democratic presidential candidate tweeted on Friday. “This is another example of a rigged and corrupt system.”
Neumann is poised to net up to $970 million by selling WeWork stock to SoftBank during a tender offer set to begin this week, Reuters reported on Sunday, citing two people familiar with the matter. His exit deal includes $185 million in consultancy fees over the next four years as well.
SoftBank also granted Neumann a $500 million personal credit line, from which he has already drawn about $400 million, according to Reuters. Neumann must use any proceeds from the tender offer to pay back the Japanese conglomerate, Reuters reported.
The tender offer is part of a $9.5 billion rescue deal that SoftBank struck with WeWork last month. It’s been delayed by more than two weeks as the company tried to make technical changes to its offer, Reuters reported.
Some SoftBank executives looked at ways to shrink the size of the bailout as they viewed Neumann’s leaving package as too generous, Bloomberg reported. However, they didn’t talk about altering the deal’s terms with WeWork, Reuters said.
WeWork pulled the plug on its IPO in September after investors railed against its mounting losses, dubious business model, questionable governance, and Neumann’s controversial behavior and tight grip on the company.
Running short of cash, it accepted a bailout from SoftBank, which is now working to overhaul its business.
