Adam Neumann’s replacements at WeWork could reportedly get their own golden parachutes worth almost $17 million if the troubled office-sharing company pushes them out.
WeWork co-CEOs Artie Minson and Sebastian Gunningham would each receive $8.3 million if they’re fired or step down because of pay cuts, reductions in their duties or other reasons, the Financial Times reported Sunday.
Jennifer Berrent, WeWork’s chief legal officer, would also reportedly get $1.5 million if she leaves the company under such circumstances.
The windfalls would be paid under exit deals that were negotiated leading up to Japanese investment giant SoftBank’s bailout of WeWork following its failed effort to go public, according to the Financial Times.
That takeover gave Neumann, WeWork’s co-founder and ex-CEO, about $1.7 billion to walk away after his alleged self-dealing and pot smoking helped derail the company’s IPO plans.
The deals could cost the struggling company a hefty pile of cash if it orchestrates another leadership shakeup. WeWork’s board has looked at candidates to replace Minson, Gunningham and Berrent, the Financial Times reported.
WeWork declined to comment on the executives’ reported exit packages.
Minson and Gunningham replaced Neumann about a week before WeWork abandoned its IPO in late September. Minson was the company’s co-president and chief financial officer while Gunningham had been vice chairman.
WeWork plans to ax some 2,400 employees — including more than 400 New Yorkers — amid its financial woes. The company has also drawn a whistleblower complaint alleging that executives inappropriately rubber-stamped its acquisition of Spacious, a co-working startup that WeWork is reportedly shutting down.
Source: NY Post