This redefines failing upward.
The lunacy of this is astounding.
WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
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Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#42Since when did loss making pre-IPO companies become "TOO BIG TO FAIL" ?
When they own/lease a shit ton of physical assets
I don't think they have many assets on their books, relatively speaking. They lease most, if not all, their property. Neumann took personal loans to buy properties, keep them off balance sheet, and leased it back to wework.
This news came out well before the s1. It's a miracle it took the s1 to get investors to give a damn when there were so many governance issues and conflicts of interest out in the open well before.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#43This redefines failing upward. The lunacy of this is astounding.
So how do we help people like me (independent, small shops) monetize their work effectively to try to inject a smidgen of sanity into the world to counterbalance such lunacy?
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#44How do you get around the paywall? The usual tricks don't work... Besides paying money.
Hit Esc a bunch while it's loading.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#45This redefines failing upward. The lunacy of this is astounding.
So how do we help people like me (independent, small shops) monetize their work effectively to try to inject a smidgen of sanity into the world to counterbalance such lunacy?
Honest answer: a beautiful thing about capital markets is that if you understand some piece of info which isn't being priced you have the ability to make lots of money.
And being rich is a pretty good starting place for large scale change. You essentially get to take money from something you disagree with and reallocate it whatever way you see just.
So basically go beat them at their own game. It seems like there are chances to do that.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#46Earlier quoted context omitted.
When they own/lease a shit ton of physical assets
I don't think they have many assets on their books, relatively speaking. They lease most, if not all, their property. Neumann took personal loans to buy properties, keep them off balance sheet, and leased it back to wework. This news came out well before the s1. It's a miracle it took the s1 to get investors to give a damn when there were so many governance issues and conflicts of interest out in the open well before…
they're one of (if not the) largest lessees in NYC (and other cities around the world), with long-term leases. A lot of landlords would have a conniption if these guys went out of business. Would rock the commercial RE market.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#47Since when did loss making pre-IPO companies become "TOO BIG TO FAIL" ?
I mean... SoftBank sunk a lot of money into it. So, from SoftBank's perspective it is too big to fail...
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#48Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#49Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#50Yet any early employees who signed on with compensation in the form of stock grants/options/RSUs have lost out on years of compensation. Claiming that it's a risk/reward tradeoff is nonsense, as ICs don't have any meaningful say on the path to exercising their "income", and there are huge incentives for founders and VCs to arrange deals like this. I really hope that people start realizing that this is a core behavior…
I've been saying for years that stock grants/options/RSUs are like playing the lotto, and salary/benefits are more important. They're also a tool to keep people in roles they no longer want, because of a promise of a great payoff someday.
Grants and RSUs are just income. Especially at the big players where they vest predictably and you can immediately sell them. And, sure, I walked away from half a million in Amazon shares when I left, but it's not like any role I took wouldn't immediately set me up with the same or better pay scale.