WeWork Cos. Inc. co-founder Adam Neumann has initiated discussions with board directors and investors about his future role at the U.S. coworking giant, including his possible resignation as CEO of its parent The We Co., Reuters reported, citing people with knowledge of the matter.
A planned board challenge led by company investors including SoftBank Group Corp. and Benchmark has been suspended until results come out of the discussions, the unnamed sources told the news agency.
The prospect of Neumann moving to a chairman role is being discussed, according to the sources. Neumann could also keep his CEO role, with an independent chairman joining the board, they added.
The We Co. recently moved to delay its IPO following investors' concerns about valuation and corporate governance.
If Neumann were to agree to a leadership transition amid the mounting pressure, The We Co. would likely be unable to complete its IPO by 2019-end and will be pushed to replace a $6 billion debt deal it secured with banks this summer that is conditional on the planned offering.
WeWork and SoftBank did not comment on the matter, while Neumann and Benchmark did not immediately answer requests for comment sent by Reuters.
