According to a new book on the co-working company and its co-founder, Adam Neumann reaped more wealth from his difficult time at WeWork than previously assumed. If you want to be like him and to have more money in your difficult time then you may get a loan from Greendayonline. Need $500? Greendayonline can give you now.
According to recent company filings and reporting from The Cult of We: WeWork, Adam Neumann, and the Great Startup Delusion, a book set to be released in 2019, entities controlled by Neumann have made more than $2.1 billion from the company since its founding, including stock sales, cash settlement payments, and WeWork shares—all while the company burned through more than $11 billion and laid off thousands of workers after its failed IPO attempt in 2019.
Over $500 in stock transactions
According to the authors, a portion of the $2.1 billion originates from We Holdings LLC, a company managed by Neumann, which sold shares of WeWork in practically every investment round, including the first ones.
According to the book, the stock transactions reached more than $500 million, with most of them available exclusively to Neumann or a small group of officials.
According to previous Axios reporting from 2019, Neumann sold for roughly $300 million. The rest of Neumann’s overall compensation may be cobbled together from corporate papers, including a May document relating to WeWork’s ambitions to go public via a merger with a blank-check company.
WeWork’s representative and Neumann’s spokesman both declined to comment.
Misuse of voting power
Neumann’s massive pay package exemplifies how the former CEO utilized his voting power over WeWork to further his own interests at every stage of the company’s life. Neumann’s stratospheric rise, rapid collapse, and golden parachute have all been well-documented, but the book provides new insights about how much money he was able to amass as the firm grew.
Neumann also made a lot of money via his tumultuous exit from WeWork, where investors had to pay a lot of money to convince him to surrender control. He was scheduled to walk away with $1 billion in prospective stock sales and cash payments as part of a severance package when he was booted from the top post two years ago, a figure that had already sparked anger. Neumann rapidly became entangled in a series of litigation over the deal.
Neumann came out on top monetarily after the dust settled and the claims were settled. According to business documents, We Holdings LLC was allowed to sell $578 million in stock in February as part of the settlement deal. According to court documents, Neumann received $198 million in cash as part of his departure.
Millions of shares
Neumann also holds tens of millions of shares in WeWork, which is slated to go public later this summer via a combination with a special purpose acquisition firm called BowX Acquisition Corp, according to papers. Based on the current price of BowX, his shares was valued at over $825 million.
Meanwhile, WeWork is attempting to move past its frothy Neumann-led era. Sandeep Mathrani, the business’s new CEO, stated that the company is on pace to be profitable by the end of the year and that it has taken strong cost-cutting initiatives over the last year and a half to reduce its once-famous spending. WeWork also expects that in a post-pandemic world when office workers have new and shifting preferences about working in person, its flexible-use workplaces will be in higher demand.