The shadow knows

24 September 2019 By Robert Cyran Follow @rob_cyran

The office-sharing firm’s boss will cede both his CEO role and control of the company, Reuters reported. That may be enough to secure capital from his backers, but not enough to justify an IPO. WeWork’s drama is now one that looks likely to be played out away from public view.

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WeWork co-founder Adam Neumann agreed on Sept. 24 to resign as chief executive of the U.S. office-sharing company and give up majority voting control, bowing to pressure from some of his investors.

Artie Minson, the chief financial officer of WeWork parent The We Company, and Sebastian Gunningham, a vice chairman, will become interim co-chief executives until a permanent replacement is found. Neumann will become non-executive chairman.

Neumann also agreed to reduce the power of his voting shares, losing majority voting control, Reuters reported citing sources familiar with the situation. Each of his shares will now have the same voting rights as three We Company common shares, not the 10 common shares previously, the sources said.

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