Adam Neumann has locked up control of the We company in a jaw dropping way even by Silicon Valley standards by giving himself 20 votes per share

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

WeWork joins a growing number of companies that give extra votes to insiders. But CEO Adam Neumann will have more votes than his peers.

allowing the executives to maintain control over their companies.

The We Company — WeWork's parent corporation — will have three classes of shares, it disclosed Wednesday in the paperwork. Class A shares, which will trade publicly after its IPO, will have one vote per share. Class B and Class C shares, nearly all of which are owned or controlled by Neumann, will have 20 votes each.

"Upon completion of this offering, Adam Neumann will own or control more than 50% of the total voting power of our capital stock and, as such, we will be a controlled company," We Company warned prospective shareholders in its IPO filing."For so long as we are a controlled company," We continued,"you will not have the same protections afforded to stockholders of [other] companies.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

investors need to stop accepting this kind of abuse by sil valley. This allows them to control the direction of the company against the will of the majority even if its wrong. shareholders need to shun companies that do this, it's getting more egregious. investment stocks

this is wizardry

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

WeWork IPO reveals company loaned millions to CEO Adam Neumann and other company execsWeWork loaned $7 million to CEO Adam Neumann in 2016, the company revealed in the IPO paperwork it made public on Wednesday. Here i believe thats what this says BI
Source: BusinessInsider - 🏆 729. / 51 Read more »

WeWork CEO Adam Neumann has incentives tied to the company's stock value and his charitable donationsThere are a number of terms tied to CEO Adam Neumann's controlling ownership of WeWork that are meant to help it meet specific financial goals. The face of the top of the stock market... Damn! I'd work for free for that man. CUTE!!! I think this is going to end bad!
Source: CNBC - 🏆 12. / 72 Read more »

The life of Adam Neumann, the billionaire WeWork founder and CEO who's about to take his company publicHere's everything you need to know about the We Company CEO, who has five children and has purchased an estimated $80 million-worth of real estate. Who would be stupid enough to pay for this SCAM- called a PONZI SCHEME- and a bad one at that- will never ever make money EVER
Source: BusinessInsider - 🏆 729. / 51 Read more »

WeWork cofounders Adam and Rebekah Neumann have to donate $1 billion to charity in 10 years or lose some control of the companyThe pair's voting rights, which let them control the shared-workplace company, will almost halve if they don't hit their goal. Can't wait to learn about the scandal that comes from this. More like WeGoingOutofBusiness. With the current had a valuation of roughly US$47 billion he can surely afford this ;-)
Source: BusinessInsider - 🏆 729. / 51 Read more »