WeWork Cuts CEO Powers Ahead Of Wall Street Debut

WeWork announced plans last Friday to reduce the power of the co-founder and chief executive of the office-sharing giant as it readies its Wall Street share offering.

A securities filing by its parent The We Company said CEO Adam Neumann would also give the company any profits he reaps on private transactions made with the startup.

A series of governance changes were also outlined in the document to address concerns about Neumann’s control and private transactions with WeWork, which touts itself as revolutionising the market for office space.

WeWork, which has already reduced by more than half its anticipated market valuation and which has faced pressure to delay its initial public offering, intends to go forward with the listing the week of September 23, according to a source familiar with the transaction.

In last Friday’s filing with the Securities & Exchange Commission, the company said the voting power in Neumann’s “super” shares would be cut from 20 votes per share to 10 votes.

The We Company will also appoint a lead independent director by the end of the year and maintain a board with a majority of independent directors, and without any members of Neumann’s family.

The document also said the company had “unwound” partnership interests to Neumann that he received for transferring trademarks to the We Company.

Neumann’s control and private deals with WeWork had sparked criticism from analysts and investors ahead of the market debut of one of the largest multibillion-dollar startups.

WeWork’s recent funding rounds, which have attracted investments notably from Japan’s SoftBank, have valued the company at some USD47 billion but sources have indicated the IPO value will be in the area of USD20 billion or less. — AFP



Please enter your comment!
Please enter your name here

Latest News

Halal Street UK and Alliance Islamic Bank sign MOU to offer tailored programmes to SMEs

Halal Street UK,  an online store for Malaysian products in the United Kingdom has signed a multi-year Memorandum of Understanding with Alliance...

Shopee and Visa sign five-year strategic partnership to offer MSMEs more digital opportunities

E-commerce platform, Shopee and Visa has announced a five-year regional strategic partnership that will encourage greater participation in Southeast Asia’s digital economy,...

MADX Panel selects IBM Cloud to offer enhanced digital services to Malaysian enterprises

IBM has announced that MADX Panel, the leading Malaysian fintech software solutions company, is implementing IBM Cloud solutions to improve digital services...

AirAsia Digital partners with Google to launch Redbeat Academy

AirAsia Digital, in partnership with Google, has launched the Redbeat Academy as part of their continued digital transformation journey.

Better e-commerce service for higher consumer spending

By Farhan Kamarulzaman, As the usage of e-commerce platforms by Malaysians is on the increase during the Covid-19 period,...

Must read

Unprecedented times with Covid-19, business decision makers prepare for a soft landing and focus on employee retention

By Andrew Seow, Regional General Manager, Rimini Street Southeast Asia and Greater China, The Covid-19 pandemic is attacking health...

Caring for young hearts

By Dr. Marhisham Che Mood, Head of Paediatric and Congenital Heart Centre (PCHC) & Consultant Paediatric Cardiologist, While heart...

PropTech and the pandemic

By Adrian Un, CEO, SkyBridge International Digitisation and PropTech (property technology) have been buzzwords in recent years, but following...

Empower local agility to unlock new business models post-Covid-19

By Scott Hensarling, Senior Client Partner and Tobjorn Karlsson, Senior Client Partner, Korn Ferry, 2020 has challenged many assumptions...