WeWork CEO is under pressure from his own Board to resign

You must have heard about the crisis that is going on at WeWork in recent times. Basically, the company was planning to go public by launching an IPO. However, the IPO launch was delayed and we don’t know when the company will release it as the deadline to release an IPO this year is fast ending.

Now, a new difficulty has arisen for the WeWork CEO as his own board wants him to resign from the position of CEO. This is according to a report where Japan’s Softbank which is the main investor has initiated a move to remove WeWork CEO, Adam Neumann. As per the reports, the WeWork board might be meeting this week and it is expected that removal of the CEO might be on top of their list of agendas.

CNBC also reported that Softbank CEO Masayoshi Son has endorsed the demand for the CEO’s ouster. This all but confirms that WeWork CEO is destined to be removed as the main investor is not happy with him. It is known that based on a hefty valuation of the We company, Softbank invested $4.4 billion into the company. It is also known that Neumann is one out of the seven board members and he commands a controlling shareholder and exercises the power to disband the board.

According to one report by the WSJ, it is believed that there is a “conflict of interest.” with the WeWork CEO and his leadership style is not palatable to many investors. Sources also said that some investors are worried about scepticism surrounding WeWork’s business model and want its planned initial public offering to be pushed to 2020. In order to improve IPO prospects, Neumann repaid $5.9 million that The We Company paid him for the trademarked word “We.”. His management also made cosmetics changes to brush off the criticism towards him for the same.