Wework owner The We Company said on Wednesday it had unwound a $ 5.9m payment it made to an investment vehicle managed by its chief executive Adam Neumann for use of the trademarked word “we”.
The payment, as well as several loans the company made to both Mr Neumann and the WE Holdings investment vehicle, raised criticism from analysts and would be investors in the group ahead of its looming initial public offering.
The lossmaking provider of office space, which is expected to kick off a roadshow for its IPO as soon as next week, also said it would add a woman to its all-male board of directors.
Frances Frei, a professor of technology and operations management at Harvard Business School, will join the board once the IPO is complete, the We Company said in a filing to US securities regulators.
Ms Frei previously served as a senior vice-president at ridehailing app Uber and since March had provided consulting services to Wework.
“Frances brings to our board of directors extensive experience researching and advising on corporate strategy, operations and culture, which our board of directors believes gives her particular insight into strategic planning and leadership,” the company said.
The We Company said it intended to add another member to its board within a year of the IPO, “with a commitment to increasing the board’s gender and ethnic diversity.”
