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He owns a building that is suitable for what WeWord does. What if he has a plane and his company needs a plane. Why is it bad to use it?

Companies always try to hire people from our network first - relatives, friends and friends of friends. Suddently it is bad.



As long as WeWork isn't paying more than market rates on its rent, then it's fine. But if they're paying more, then the CEO is corrupt -- he's using his control of his company to enrich himself personally rather than steering the company towards success.


It's not just about rent being in line with market norms. In order for it not to be personal enrichment at WeWork's expense, it's also got to be assumed that these particular leases on this particular properties were sincerely believed to be the best possible use of the $110m of WeWork shareholders' funds committed to properties its execs had an ownership interest in: i.e. that there were no competing locations (or capital investments) that might have been expected to yield higher customer revenues and nothing comparable on offer at below market rates. Additionally, we've got to assume WeWork execs were not in competition with WeWork to acquire actual [part]-ownership of the buildings (the article provides an example of Neumann trying to personally buy a stake in a building knowing that WeWork wanted to occupy it but WeWork blocking it because they were happy to stump up for title deeds as well as the lease. It certainly doesn't rule out the possibility he used his knowledge of WeWork's requirements to acquire other freehold titles which WeWork might have preferred to buy rather than just lease though).


Or a better option - he leased/bought the building with interest X and sub-leased it to WeWork for X+50%. From Adam N (We CEO) history, he is not common from such a rich family to afford buying building worldwide.


conflict of interest?




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