WeWork Bankrupt, CEO Even Gets Rp 23 Trillion
One of the office sharing startups, WeWork reportedly going bankrupt after the losses suffered and failed IPO or share sales. The founder, Adam Neumann said he was not serious in leading his company who served as CEO. Even so, Adam also got a big overdraw.
A Japanese telecommunications giant, Softbank, which is a main supporter of WeWork, which has provided an injection of up to USD 10 billion, does not want WeWork to collapse.
They continue to look for steps to save by taking over the company with an additional capital of around USD 9.5 billion.
Must Pay a Fine of IDR 23 Trillion
Neuman has recently been removed from the CEO position and will be subject to compensation of USD 1.7 billion or equivalent to Rp. 23 trillion. In addition, there is a condition to give up voting rights and leave WeWork completely.
If detailed, Softbank will also pay for Neuman USD 970 million for his shares. Where USD 185 million for consulting fees and USD 500 million to pay off Neuman’s debts to JP Morgan Chase, UBS and Credit Suisse.
Neuman’s Compensation Questionable
Some have questioned the large compensation imposed on Neumann. Considering the thing that made WeWork fall is where Neumann has a luxurious lifestyle. But the company thinks he deserves it all.
“Our gratitude goes to Adam because he was the one who built this business,” said Marcelo Claure, the new Executive Chairman of WeWork.
The step to rebuild WeWork’s performance that is being carried out is that it is reported that thousands of employees will be laid off. Claure also believes that WeWork is now on the right path and will not experience the unwanted thing, namely bankruptcy.
