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

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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.

 

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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

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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 ;-)
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