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Adam Neumann could reap $2B from WeWork golden parachute
Former CEO reportedly holds 24 million "profit interests" in company

Adam Neumann’s golden parachute could be the gift that keeps on giving.
According to the Financial Times, the WeWork co-founder owns millions of “profit interests” in the co-working firm, which means that if WeWork goes public, Neumann’s $1.7 billion package could grow in value to more than $2 billion.
In the event of an IPO, Neumann’s interests would would convert into stock with a value equivalent to the current share price, less a fixed “catch-up price.”
After being pushed out of his position in September, Neumann reportedly negotiated a lower catch-up price than the $38.36-per-share arrangement associated with the more than 42 million profit interests he once owned.
He now holds about 8.5 million profit interests that include a catch-up price of $19.19 a share, the Financial Times reports. He holds an additional 15.6 million interests with a catch-up price of $21.05.
Should WeWork go public and its share price reach $25, that would turn Neumann’s profit interests into stock worth more than $100 million. (Nomenclature aside, there is no sign of profit in the company’s foreseeable future.)
As part of SoftBank’s bailout, Neumann was paid almost $1 billion for his stake in the company and SoftBank settled his $500 million debt with JPMorgan and other banks. In addition, Neumann received a $185 million consulting fee. The king’s ransom was seen as necessary to get Neumann to relinquish control of the company. [Financial Times] — Sylvia Varnham O’Regan
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