News 26 | Recode: "Why WeWork founder is getting $1.7 billion to leave the company he ran into the ground"

If you’re interested in corporate governance, the debacle of WeWork and the ouster of Adam Neumann has been the story of the month (or year!).

Softbank agreed to purchase up to $1 billion of Neuman’s stock, pay him a $185 million consulting fee, and will extend him a $500 million credit line to pay off his $500 million credit line from JPM. In exchange, Neumann agreed to step down as Chairman of the board (but he will remain a board observer) and will drop his super voting shares.

“I’ve never seen such a massive consulting fee for someone who is walking away,” Evan Epstein, founder of the corporate governance firm Pacifica Global, told Recode, referring to tech startups. “It’s extraordinary that he walks away with billions of dollars in a situation where maybe the company is imploding and it is losing value at the rate it is.” To read the full article, please go to this story.

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Pacifica Global was founded in San Francisco to serve as a leading corporate governance advisory firm. The mission of Pacifica Global is to help founders, executives, directors and investors solve some of their most complex corporate governance conflicts and challenges.