Adam Neumann, founder and former controversial CEO of WeWork, will leave with nearly $ A2.5 billion from the office space sharing company, despite its drastically reduced value and about 2000 employees losing their jobs.
The Japanese conglomerate SoftBank Group proposed a package to save the company on the rise, according to Bloomberg, which includes Neumann which sells shares for about $ 1.46 billion.
The former chief will also receive a $ A270 million advisory commission from the Japanese company.
This windfall is coming while the value of WeWork plummets from an estimate of $ A68.6 billion to its current valuation of only $ A11.7 billion.
Neumann will also receive a $ A730 million credit line from SoftBank to help repay its loans to JPMorgan Chase, according to Wall Street newspaper.
The catch and probably good news for SoftBank? Neumann will move away from his position on WeWork's board of directors.
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HOW HAS YOU HERE?
Until a few weeks ago, Neumann was piloting WeWork towards a gigantic initial public offering that would make him a multi-billionaire.
But when investors left the company in crisis and its launch on the stock market was delayed, Neumann's bizarre and extremely expensive decisions left his position as unsustainable CEO and he resigned last month.
In September, some bankers had touted WeWork's valuation up to $ A95 billion, which would have made the 22% stake of the former CEO worth an incredible $ 20 billion.
But the company has had to continually cut its valuation target due to doubts about its prospects from potential investors and is now under pressure to postpone its debut on the market.
WILD ANCIENT OF THE CEO OF ROCK STAR
Since the Social Network brought us Facebook curtains and the rise of Mark Zuckerberg, the wild antics of young start-up pioneers have been synonymous with parties, distorted ambitions and a lot of money.
But the dirty list of dirty bizarre episodes and the anecdotes fed with Neumann's alcohol reach mythological proportions as detailed in a recent report by The Wall Street newspaper.
The long-haired CEO once spent an international flight on a private jet smoking marijuana and when the plane landed in Israel, the crew members found a box of herb-filled cereal.
When the owners of the plane found out, he ordered the crew to immediately return home to avoid any drug-related crime, leaving Mr. Neumann locked.
The occasional drug taking can explain some of his other thoughts and ambitions, like his hopes of living forever and wanting to be the president of the world.
His enthusiasm for the holidays is well known. Apparently, he would have walked through the office barefoot listening to Rihanna and had once hosted a "summer camp" for employees outside London, which was a theme party at the music festival where "the bartenders distributed free rosé for the bottle".
Other parts were more inadequate.
Like when Neumann fired 7% of his staff. And once the announcement was made, tequila trays were distributed and Run-DMC's Darryl McDaniels performed a set while the employees danced It's misleading.
The unusual behavior extends to Neumann's wife, Rebekah, who allegedly fired more employees after meeting them for a brief meeting because "she didn't like their energy".
The Wall Street newspaper much more details. So the question shouldn't really be where everything went wrong? But rather how did Neumann rule one of the most appreciated start-ups in the world?
WHAT HAPPENED TO THE PUBLIC OFFER?
Last month it was reported that some investors were concerned about the skepticism surrounding the business model of the company and wanted its planned IPO to be brought to 2020.
After WeWork presented its statements to make it public recently, it was revealed that Mr. Neumann had been paid the incredible sum of $ 5.9 million ($ A8.6 million) from his own company.
The reason for the payment? The use of the word "we".
Payment took place when WeWork "was reorganized and renamed" as The We Company in January before the initial public tender presentation.
Neumann, 40, owned the "We" brand through a private company, We Holdings LLC, which then sold the use of the word to WeWork.
The controversial move was followed by a series of experts, including New York University marketing professor Scott Galloway, Axios Dan Primack and Trition Research CEO CEO Rett Wallace.
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