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If Neumann declines the offer what happens here? He feels like the kind of guy who would rather watch it all burn down than sell out.
by meddlepal 7y ago
If Neumann declines the offer what happens here? He feels like the kind of guy who would rather watch it all burn down than sell out.
- aodin 7y agoWhat gives you that impression? Arguably, it was his early $700 million parachute that undermined the WeWork IPO.
- duxup 7y agoWeWork is where the bulk of his wealth has come from correct? I would think a lucrative exit would be better than a potential fight with SoftBank.
- deleted 7y ago[deleted]
- throwaway5752 7y agoThe chairman of the board of a company doesn't get to "burn it all down" because that would be a breach of fiduciary duty. I may be wrong but wouldn't he be exposed to personal liability at that point?
- bryanrasmussen 7y agoI think it would be a difficult argument to make that someone has a fiduciary duty to sell.
- SirensOfTitan 7y agoI’m clueless here, but WeWork is a private company: does Neumann have any de-jure fiduciary duty?
- quaquaqua1 7y agoI believe so, he has the duty to private "accredited" investors. IIRC, this is sort of what toppled Shkreli-- he mishandled investor money in a criminal manner, despite actually not losing any of their money.
- erikpukinskis 7y agoShkreli got busted for fraud, not fiduciary duty. He paid our investors in one investment with profits from another. Unlike Elon Musk he didn’t do so publicly and with shareholder approval.
- throwaway5752 7y agoRegardless of that execrable Shkreli, you have de jure fiduciary duties if you are on the board of a private company, yes. At least in the most common forms of incorporation. I am not even sure if it requires you have other shareholders, let alone if you are a controlling shareholder or they are accredited investors.