3 ms·

CNBC reporting his Class B and C shares will be further reduced from 10:1 to 3:1 voting rights, so he no longer will control the majority of votes. https://www

CNBC reporting his Class B and C shares will be further reduced from 10:1 to 3:1 voting rights, so he no longer will control the majority of votes. https://www.cnbc.com/2019/09/24/wework-ceo-adam-neumann-is-expected-to-step-down-amid-controversy-and-retain-chair-role-wsj-reports.html https://www.cnbc.com/2019/09/24/wework-ceo-adam-neumann-is-e...

609venezia 7y ago
Wow. That's a surprise. I wonder what kind of stick they had to beat him into that?
- DebtDeflation 7y ago
  Softbank probably made it clear to him that if there is any hope to salvage the IPO and have a chance at a lucrative exit, this is the only path forward. That or they found his cereal box and threatened to call the cops.
  - gberger 7y ago
    > That or they found his cereal box and threatened to call the cops. I'm sorry, I don't understand this part. Is this a reference to something?
    - kgwgk 7y ago
      Google “cereal box wework” and you’ll find a drug-related story in the WSJ.
- rocqua 7y ago
  I think Softbank could tank We stock by refusing to further finance them, and trying to sell them. That would also hurt Softbank though, so the question becomes, what was so bad about Neumann staying on to warrant such a stick.
  - GavinMcG 7y ago
    You don't have to actually use the stick; maybe Neumann wasn't willing to call the bluff.
- rossdavidh 7y ago
  Well, if he leaves now, it's not as if he's going off to a terrible fate. He's been pretty well-paid. If he gets an IPO out of it someday, he'll get even more money, but if he doesn't, he gets to step off the burning ship. Or, to put it another way, he doesn't have to go through firing all of those people that he hired when he was pumping the company up to ginormous size. I think perhaps the fun part of running WeWork was behind him, regardless of how it turns out.
  - paxys 7y ago
    Exactly. If they have a successful IPO and become a profitable company - he gets very rich. If they don't - he still stays rich and gets to gloat about it.

609venezia 7y ago

Wow. That's a surprise. I wonder what kind of stick they had to beat him into that?

DebtDeflation 7y ago
Softbank probably made it clear to him that if there is any hope to salvage the IPO and have a chance at a lucrative exit, this is the only path forward. That or they found his cereal box and threatened to call the cops.
- gberger 7y ago
  > That or they found his cereal box and threatened to call the cops. I'm sorry, I don't understand this part. Is this a reference to something?
  - kgwgk 7y ago
    Google “cereal box wework” and you’ll find a drug-related story in the WSJ.
rocqua 7y ago
I think Softbank could tank We stock by refusing to further finance them, and trying to sell them. That would also hurt Softbank though, so the question becomes, what was so bad about Neumann staying on to warrant such a stick.
- GavinMcG 7y ago
  You don't have to actually use the stick; maybe Neumann wasn't willing to call the bluff.
rossdavidh 7y ago
Well, if he leaves now, it's not as if he's going off to a terrible fate. He's been pretty well-paid. If he gets an IPO out of it someday, he'll get even more money, but if he doesn't, he gets to step off the burning ship. Or, to put it another way, he doesn't have to go through firing all of those people that he hired when he was pumping the company up to ginormous size. I think perhaps the fun part of running WeWork was behind him, regardless of how it turns out.
- paxys 7y ago
  Exactly. If they have a successful IPO and become a profitable company - he gets very rich. If they don't - he still stays rich and gets to gloat about it.