INTERNATIONAL – WeWork owner The We Company said on Friday it has curbed the voting power of founder and Chief Executive Adam Neumann, part of changes to its corporate governance aimed at reviving demand for its planned initial public offering.
The office space sharing start-up said it was making the changes “in response to market feedback” as the company considers seeking a valuation in the IPO for less than half what it was worth just nine months ago in the face of lukewarm demand.
Loss-making We Company said Neumann’s superior voting shares will decrease to 10 votes per share from 20, it said in a regulatory filing, though he will still retain majority control of the company.
Neumann will also give the company any profits he receives from real estate deals he has entered into with We Company. He will also limit his ability to sell shares in the second and third years after the IPO to no more than 10% of his stock.
No member of Neumann’s family will be on the company’s board and any successor will be selected by the board, scraping a plan for his wife and co-founder Rebekah Neumann, who is chief brand and impact officer, to help pick the successor.