The golden parachute for Neumann was included in a SoftBank rescue deal, formally announced late Tuesday, that will pump billions more into the embattled company after its failed IPO. Neumann will get the ability to sell up to $970 million in stock back to SoftBank, receive a $500 million loan to repay a credit line, and a $185 million fee for consulting for SoftBank, according to a person familiar with the matter.
The bailout leaves Softbank in control of the company and to clean up the mess left behind by Neumann. In company-wide emails sent Wednesday, obtained by CNN Business, WeWork leadership attempted to level with staffers about the remaining questions facing the business. Later, there was an all-hands meeting led by Marcelo Claure, SoftBank’s chief operating officer who became WeWork’s executive chairman as part of the deal.
At the meeting, Claure addressed a question about the payment to Neumann by acknowledging the work he had done for the company, according to two sources familiar with the meeting. Claure explained that while the steps SoftBank took were expensive, they were necessary for it to take control of the business, and that Neumann will serve as a consultant to SoftBank and will have a non-compete clause, a third person familiar with the meeting said.