- Some board members at the coworking startup WeWork aim to push out CEO Adam Neumann, according to a report Sunday from The Wall Street Journal.
- The board could meet this week and may discuss Neumann becoming WeWork’s nonexecutive chairman, The Journal reported.
- According to the report, it was unclear how all of the company’s seven directors – a list that includes Neumann – had sided.
- Among the people who want Neumann out are officials linked to the large WeWork backer SoftBank, The Journal reported. SoftBank’s chairman and CEO, Masayoshi Son, is in favour of ousting Neumann as CEO, CNBC reported, citing a person familiar with the matter.
- The New York Times also reported on Sunday that some board members and large investors were discussing the possibility of replacing Neumann, based on feedback from some major money managers. The Times reported, however, that those conversations were so far informal.
- Controversy over the way the company is run led it to shelve its initial public offering until at least later this year, an unusual move.
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WeWork’s charismatic and controversial CEO, Adam Neumann, is said to be in the hot seat after the company shelved its initial public offering until at least later this year.
A group of WeWork directors aim to oust Neumann from the role, though it’s unclear how the seven-member WeWork board, which includes Neumann, has sided, The Wall Street Journal reported Sunday.
The board could meet this week and discuss Neumann becoming WeWork’s nonexecutive chairman, according to The Journal. Those said to want Neumann out at CEO include officials linked to WeWork’s biggest backer, SoftBank.
SoftBank’s chairman and CEO, Masayoshi Son, is in favour of ousting Neumann as CEO, CNBC reported on Sunday, citing a person familiar with the matter.
As cofounder of WeWork, Neumann built the company into a coworking giant valued in the private markets at $US47 billion. But the charismatic leader has also faced intense criticism about how he runs the company and his own dealings with it, including conflicts of interest, and a lack of investor interest led the company to postpone its IPO plans until at least later this year.
Neumann retains a strong hold over the company he helped start, and The Journal noted that attempting to oust the billionaire businessman would be a gamble, as he retains allies and has the power to fire the entire board.
A report from The New York Times on Sunday said that some board members and large investors were speaking in private about the possibility of replacing Neumann, in light of feedback from some major money managers. The Times reported, however, that those talks were so far informal.
- Read more:
- The life and career rise of Adam Neumann, the billionaire WeWork founder and CEO taking his company public
- WeWork is undergoing an exodus of top staffers. Here’s everyone who’s left the company this summer.
- WeWork’s valuation is under fire. Here’s everything we know about its IPO plans, finances, and concerns around CEO Adam Neumann.
- A former WeWork executive who made $US300,000 and is now suing describes strange cultlike culture, including endless flows of alcohol at mandatory sleepover camp for employees and the CEO’s children on his lap during an all-hands meeting
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