In September it was announced that WeWork’s founder and CEO Adam Neumann would be leaving the company. Shortly after, the company pulled plans for its hotly anticipated IPO. The cancelation came after concerns rapidly grew in August and September about the company’s financials and sustainability. During that timeframe, the company’s valuation plummeted from an estimated $47 billion to around $10 billion.
Now CNBC is reporting that while Neumann will stay on as chairman, he’s getting a package worth almost $1.7 billion to step aside as CEO. That’s almost 20% of the company’s current estimated valuation. SoftBank, one of the We Company’s main investors, will reportedly give Neumann the following to step down:
- $1 billion in exchange for his shares in the company
- A one-off $185 million consulting fee
- An additional $500 million in credit to help Neumann repay loans he owes to JPMorgan
Earlier this year Neumann had already cashed out an additional $700 million in shares and loans. The nearly $1.7 billion package would be in addition to his previous share sale. The running of the We Company is now in the hands of its new co-CEOs, Artie Minson and Sebastian Gunningham.