Here’s how much WeWork co-founder Adam Neumann made before the company’s bankruptcy

Adam Neumann, co-founder and former chief govt officer of WeWork.

Michael Nagle | Bloomberg | Getty Images

WeWork’s dizzying rise and protracted fall into Chapter 11 bankruptcy protection Monday largely hinged on one man: Adam Neumann.

The former WeWork CEO based the firm in 2010 and largely by means of the power of his character created an actual property juggernaut that was price $47 billion at its January 2019 peak. By the time it filed for bankruptcy safety, WeWork was price a mere $45 million.

“As the co-founder of WeWork who spent a decade constructing the enterprise with an incredible staff of mission-driven folks, the company’s anticipated bankruptcy submitting is disappointing,” Neumann mentioned in an announcement to CNBC. “It has been difficult for me to look at from the sidelines since 2019 as WeWork has did not make the most of a product that’s extra related at present than ever before. I consider that, with the proper technique and staff, a reorganization will allow WeWork to emerge efficiently.”

Neumann stepped down as CEO in Sept. 2019 after critics noticed questionable self-dealings in the company’s IPO submitting, like promoting the trademark to the phrase “We” for $6 million in inventory (which he would later return). Reports round the similar time described an unorthodox administration model and a hard-partying setting at the firm. The firm withdrew its IPO underneath scrutiny, irritating buyers who’d hoped for outsized returns.

Unlike many founders who’ve seen their internet price evaporate alongside their company’s fortunes, the 44-year-old Neumann possible stays a rich man.

A sizeable portion of that wealth was collected after Neumann stepped away from the firm, because it girded up as soon as once more for a public providing, this time through a particular goal acquisition firm.

As a part of that SPAC course of, SoftBank reportedly paid Neumann a reported $480 million for half of his remaining stake in WeWork in 2021. The funding large had initially tried to again out of shopping for Neumann’s full stake, valued at $1 billion, prompting a go well with from the former CEO.

Neumann additionally reportedly collected another $185 million as a part of a non-compete settlement and an extra $106 million as a part of a settlement. In all, regardless of being faraway from a administration function years earlier, Neumann reportedly collected round $770 million in money from the 2021 SPAC course of alone.

Neumann additionally nonetheless retained a stake in the firm valued at round $722 million when WeWork debuted in 2021, Bloomberg reported. Following the bankruptcy submitting, these shares are nugatory, though it is not recognized how many — if any — he nonetheless holds.

As the company’s market cap spiraled downward, Neumann launched into one other real-estate tech enterprise, called Flow. Valued at $1 billion and flush with a $350 million examine from venture capital firm Andreesen Horowitz, the firm promised to resolve inequities in the rental-housing market by creating a way of neighborhood and serving to renters construct fairness of their houses.

Flow has reportedly constructed up a portfolio of three,000 items in main metropolitan areas, with Neumann describing the company’s strategy as a “technology-first” enterprise. At the floor degree, it will appear to be a continuation of Neumann’s strategy with WeWork, tailored for the residential market, with the risk of a monetary companies arm as nicely. Flow’s web site lacks additional element, though the firm is hiring for a number of positions throughout the U.S.

In an October look on CNBC, Neumann emphasised how his upbringing formed his enterprise ventures. “The WeWork journey was an incredible one,” Neumann mentioned.

“Flow is one other iteration of the similar story, which is: when folks stay in neighborhood, when folks stay collectively, when folks clearly have variations,” Neumann continued, “there’s at all times a typical floor.”

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