Adam Neumann, pictured in January 2018, announced last month that he was stepping down as chief executive of WeWork
Adam Neumann, pictured in January 2018, announced last month that he was stepping down as chief executive of WeWork GETTY IMAGES NORTH AMERICA / Cindy Ord

Adam Neumann, former CEO of troubled start-up WeWork, will reportedly receive a financial windfall for leaving his company.

Sources told the Wall Street Journal that Neumann will make $1.7 billion by exiting the shared office space company and forfeiting his voting rights.

SoftBank, the institution in talks to take control of the company, will pay Neumann $970 million for his WeWork shares, a $185 million consulting fee, and a further $500 million in credit to with outstanding debt at J.P. Morgan Chase, according to the Journal.

Neumann, 40, served as the company's CEO from 2010-19.

Advanced talks are currently underway for SoftBank to acquire WeWork, with a final announcement coming as later today. The company is currently valued between $7.5-8 billion, down sharply from its $47 billion valuation prior to its failed initial public offering.

In August, WeWork’s IPO prospectus showed revenue of $1.54 billion and a net loss of over $900 million.

Without a new infusion of funds, the company will run out of money in mid-November.

Money troubles are also keeping the company from properly cutting its staff. The Journal reports that’s the company’s cash shortage means that it is unable to offer proper severance packages to employees it might potentially let go.

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