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Old 24.10.2019, 21:08
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Re: !

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Soft Bank's deal to make Adam Neumann step down boggles the imagination!

According to WaPo, Neuman can sell up to $970 million of his shares; will received $185 million in consulting fees over the next 4 years (really?) and will have a personal credit line of $500 million established by Soft Bank (to take care of his other personal credit line of $500 million with JP Morgan - of which $395 million has been drawn down at present).

And so this guy grossly mismanages a company (some would accuse him of fraud) and this is the package he receives? Unbelievable! Makes me wonder what inside info Mr Neumann may have on Masayoshi Son, Soft Bank's founder and CEO. This kind of payout for a CEO of a company - WeWork- whose cash flow is so thin they can't even make layoffs ( as they cannot afford the redundancy packages) is unprecedented to say the least. I imagine this could be the next non-fiction bestseller which I am certain is in progress! Here is the link to the WaPo article:
I don't see why he would need to have something on Softbank, Softbank screwed itself with investing hugely in a company without gaining the according part of the votes, so they let somebody else decide what to do with their part of the company. Now the company is going down the drain they can do 2 things.

1. Leave it as is and kiss their money goodbye.
2. Buy up the voting rights and try to make it all work.

They chose option 2.

The article reads as if early investors and founders are the problem while there is no problem. If investors are willing to invest without proper voting rights to decide along they willingly take a risk and should not complain when to have to pull their wallet later if they want a say.
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