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CFA SINGAPORE INSIGHTS

WeWin: A failure of dual class shares in private markets

Due to his disproportionate supervoting shares, WeWork founder and ex-CEO Adam Neumann held de facto total control of the firm and so a significant payout was required to push him out

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The headline figure to pay off Mr Neumann - US$1.7 billion - seems extraordinarily high, yet this was the premium required from new owner SoftBank to seize control of WeWork.

FOR those incredulous over WeWork founder and now ex-CEO Adam Neumann exiting with US$1.7 billion for his not-profitable office sub-letting company, I recommend the memoir Disrupted by Dan Lyons. Mr Lyons, who is a former Newsweek journalist, provides a first-hand account of working under start-...

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