WeWork's co-founder Adam Neumann is stepping down as CEO after pressure from the company's board and investors.
The ouster, announced Tuesday(opens in a new tab), comes after reports of bro-y misbehavior and serious financial concerns.
Earlier this month, a Wall Street Journal(opens in a new tab) story(opens in a new tab) described some of Neumann's escapades, which, to put it lightly, reflected poorly on his ability to lead a company. For instance, at a 2016 meeting, Neumann addressed the decision to fire 7 percent of the company's staff — and then brought out tequila shots and Darryl McDaniels of Run-DMC to perform.
There are other stories, too, like the time Neumann and his friends left a chunk of marijuana in a cereal box on an airplane. Or when he banned meat from the company(opens in a new tab) without consulting anybody first.
Still, the board and investors are probably just as concerned about the company's dip in valuation(opens in a new tab) from $47 billion in January to $15 billion. And, according to (opens in a new tab)the New York Times(opens in a new tab), they're also worried that Neumann "exercised too much control over the company through special voting shares."
But despite the quick fall, don't shed any tears for Neumann, for like many a CEO before him, he's going to land softly. As he exits, he'll become nonexecutive chairman(opens in a new tab) of We Company, the parent company for WeWork, and he'll get all the money that position brings. Such a pity.
