Adam Neumann’s WeWork golden parachute even bigger than previously reported

WeWork co-founder received an enhanced stock award worth $245M

National /
May.May 27, 2021 01:30 PM
Photo illustration of Adam Neumann (Getty, iStock/Illustration by Kevin Rebong for The Real Deal)

Photo illustration of Adam Neumann (Getty, iStock/Illustration by Kevin Rebong for The Real Deal)

Adam Neumann’s golden parachute is the gift that keeps on giving.

As part of his exit package from the flex-office company, Neumann received an approximately $245 million stock award in February, a benefit that other early shareholders didn’t receive, Wall Street Journal reported.

That benefit was a part of a renegotiation of Neumann’s 2019 deal to leave the company he co-founded. In addition to the stock, Neumann received $200 million in cash, as well as the refinancing of a $432 million loan. The new terms were intended to settle an ongoing dispute between Neumann and SoftBank, one of WeWork’s biggest financial backers, sources familiar with the matter told the publication.

The renegotiated terms were made public in SEC filings as part of WeWork’s merger with the special-purpose acquisition company BowX Acquisition Corp. The company is planning to go public via the SPAC merger later this year, following an aborted attempt to do so in 2019.

After Neumann’s departure, WeWork sold several companies that the company acquired under his leadership, which led to big losses: The company purchased 10 investments for $759 million in cash and WeWork stock, but only garnered $164 million, the publication reported.

More than 90 percent of WeWork’s staff held stock options when SoftBank bailed out the company in 2019, the publication reported. The company downsized and thousands of employees that were laid off had to forgo all of their options.

So how did Neumann get away with such a hefty stock award? He controlled the company while holding stock with 10 times the votes of a normal share, an expert told the publication. Thus, SoftBank was paying him to give up that control.

[WSJ] — Cordilia James






    Related Articles

    arrow_forward_ios
    Fruchtlander family buys Hollywood, Florida rental for $32M
    Fruchtlander family buys Hollywood, Florida rental for $32M
    Fruchtlander family buys Hollywood, Florida rental for $32M
    Moishe Mana buys Allapattah site as he doubles down on Miami
    Moishe Mana buys Allapattah site as he doubles down on Miami
    Moishe Mana buys Allapattah site as he doubles down on Miami
    Robert Finvarb and Abraham “Abie” Hidary with the site at 2534 North Miami Avenue (Koniver Stern Group)
    Hidrock Properties, Robert Finvarb pay $13M for Wynwood site
    Hidrock Properties, Robert Finvarb pay $13M for Wynwood site
    The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
    Miami Beach seeks buyers for city-owned development sites
    Miami Beach seeks buyers for city-owned development sites
    Developer David Edelstein and Robert Levine of RAL Development with the project (Getty, RAL)
    David Edelstein, partner close on missing piece of Wynwood assemblage for office towers
    David Edelstein, partner close on missing piece of Wynwood assemblage for office towers
    David Grutman and Pharrell’s Goodtime Hotel had received nearly 30 noise violations (Carma Connected, Getty)
    Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
    Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
    Related Companies Chairman Stephen Ross with One Flagler (Related, Getty)
    Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
    Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
    Grover Corlew principal Mark Corlew with Bank of America Tower in Boca Raton (Grover Corlew)
    Grover Corlew buys Bank of America Tower in Boca Raton for $45M
    Grover Corlew buys Bank of America Tower in Boca Raton for $45M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...