[NEWS] We Company adds a director, ditches its $5.9 million naming deal with its CEO, remains a governance nightmare – Loganspace

The firm beforehand acknowledged as WeWork,in an amendment to the S-1thatlauncheddozens ofvitalheadlines, says it has added a peculiar director to its board and unwound the $5.9 million payout to chief government Adam Neumann over the name “We.” 

The unusual board member is Frances Frei, a professor of workmanship and operations administration at Harvard Enterprise College and a well informed to the firm since March 2019.

Frei’s outdated train to famebecame as soon as rehabilitating the federal government and managerial team at Uber Applied scienceswithin the wake of a series of fiascos that within the break brought down the firm’s chief government, Travis Kalanick.

Frei becomes the predominant girl on the We Company’s board of directors —repairing an oversight which the firmgot criticism for when it first filed for its preliminary public providing. Shareholder advocacy teams grasp pressed for better diversity on corporate boardsso to toughen firm efficiency and supply a broader vary of strategic steerage.

As fragment of the amended filing,The We Companyalso dedicated so that you just would possibly per chance per chance add a director to the board that can amplify the firm’s gender and ethnic diversity.

Within the equivalent amendment, the firm acknowledged that it became as soon as unwinding the $5.9 million transaction between itself and a conserving firm — WE Holdings LLC, which held the trademark for the “We” mark and became as soon as owned by We Company’s chief government, Adam Neumann.

“[At] Adam’s route, the issuance to WE Holdings LLC of the partnership interests became as soon as unwound and the partnership interests had been returned to the We Company Partnership,” the firm acknowledged in an announcement.

To account for: The manager government officer of a firm agreed to unwind an agreement with himself that paid him on the realm of $6 million in declare that the firm he ran would possibly per chance well employ the trademark “We.” It also added a peculiar “self sustaining” director to its board who had been a paid consultant of the firm for months sooner than joining the board of directors.

All of this comes after the equivalent chief governmentcashed out of $700 millionthru firm stock and loan agreements.

No surprise folks are calling the firm a “corporate governance nightmare.”