WeWork CEO Adam Neumann In The Line Of Fire
https://wccftech.com/wework-ceo-adam-neumann-in-the-line-of-fire/
Every week seems to herald a new twist in the Sisyphean soap opera that best characterizes the current state of affairs at WeWork, the company that specializes in the provision of shared workspaces. According to multiple reports that emerged on Sunday, a group of WeWork directors is planning to force the company’s CEO, Adam Neumann, to relinquish his current post. This rebellion within the board of directors apparently has the backing of the company’s largest investor, the Softbank Group Corp (TYO:9984). These reports follow a turbulent week for the embattled company in which it was forced to postpone its much-anticipated IPO over the growing investor skepticism related to the financial viability of the company. The situation only deteriorated as an expose in the Wall Street Journal revealed that Adam Neumann was once forced to reschedule a trip via a private plane when the crew found marijuana stashed onboard.
WeWork’s board of directors is expected to meet sometime this week to consider a proposal whereby Adam Neumann is forced to adopt the role of non-executive chairman which, in turn, paves the way for a new CEO to pursue the desperately needed IPO. This move, according to its proponents, will play an important role in placating investors while also allowing Mr. Neumann to remain a part of the company he co-founded. Nonetheless, the gambit is not without inherent risks. Due to his super voting rights, Adam Neumann possesses the power to fire the entire board, thereby, frustrating attempts to remove him from the helm of the company’s affairs.