Senator and presidential candidate Elizabeth Warren has lambasted Adam Neumann’s $1.7 billion severance after the cofounder and former CEO was forced to resign at WeWork.
“WeWork is laying off 2,400 employees — while its founder walks away with a massive $1.7 billion golden parachute,” Warren tweeted. “This is another example of a rigged and corrupt system.”
Neumann will reportedly have a networth up to $970 million after selling WeWork stock to SoftBank, which is expected to take place this week. His exit deal also includes $185 million in consultancy fees over the next four years.
The Japanese conglomerate also gave Neumann a $500 million personal credit, from which he has already drawn $400 million, and must use any proceeds to pay back SoftBank.
This news follows WeWork canceling plans for its IPO in September after it experienced a lack of investor interest and major criticism over its business model. SoftBank, who is the largest shareholder and backer of WeWork, then offered the company a $9.5 bailout deal which the coworking provider readily accepted.
