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WeWork Moves to Limit the Power of Its C.E.O.


The parent company of WeWork disclosed on Friday that it had reduced the control of its co-founder, chairman and chief executive, Adam Neumann.

The changes suggest that the company, the We Company, a fast-growing purveyor of shared work spaces, intends to move forward with its plans for an initial public offering. The moves appeared to be a response after prospective investors balked at the extent of Mr. Neumann’s influence over the business and the valuation it was seeking.

In an amended prospectus, the We Company laid out several ways that Mr. Neumann’s control will be diminished. They include the appointment of a lead independent director, who will be selected by the board, and the barring of any member of Mr. Neumann’s family from the board.

Also, the special class of stock that Mr. Neumann owns will have its influence halved, to 10 votes per share, from 20. Should he die or become permanently incapacitated, they will effectively become ordinary shares with one vote apiece.

The We Company also disclosed that it had selected the Nasdaq stock exchange as the market where its shares will trade.


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