Adam Neumann got a sweet $1.6-billion WeWork exit package. It could get sweeter

Adam Neumann got a sweet $1.6-billion WeWork exit package. It could get sweeter
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WeWork co-founder Adam Neumann, who left the loss-making office-space provider with a $1.6-billion exit package, could earn hundreds of millions of dollars more under an agreement struck with the company and its top shareholder in October, according to documents reviewed by the Financial Times and people briefed on the matter.

The deal revised the terms of a class of shares held by Neumann — known as profits interests — that were created by the company’s complex restructuring this year and had little value after plans for a WeWork initial public offering fell apart.

But a future offering — even at a valuation significantly lower than the company was seeking this summer — could result in Neumann receiving hundreds of millions of dollars if he sells the stake.

In October, a month after Neumann stepped down as chief executive, he agreed with WeWork and SoftBank, its biggest investor, to forfeit some of his profits interests, while receiving improved terms for his remaining stake, positioning him for future gains.

Source:  LA Times

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