Adam Neumann’s golden parachute keeps getting smaller.
The WeWork co-founder is discussing a settlement with SoftBank that would cut his payout from the Japanese investment giant roughly in half, according to reports.
Neumann and WeWork filed separate lawsuits against SoftBank last spring after it abandoned plans to buy $3 billion worth of shares from the office-sharing giant’s investors.
But the parties are nearing a deal that would put SoftBank — which is now WeWork’s majority owner — on the hook for just $1.5 billion of that, including nearly $500 million that would go to Neumann, The Wall Street Journal reported Monday.
SoftBank would get 10.5 percent of WeWork’s stock from the firm’s early investors in exchange for that pile of cash at a rate of $19.19 a share, the price it initially agreed to pay, one person familiar with the deal told CNBC.
WeWork declined to comment on the talks, which are reportedly not guaranteed to produce a final agreement. A spokesperson for SoftBank did not immediately respond to a request for comment Tuesday.
If it goes through, the settlement deal would trim about another $500 million off the $1.7 billion exit package Neumann was supposed to receive after he stepped down as WeWork’s CEO in 2019 following the company’s failed attempt at an initial public offering.