WeWork Executive Chairman Marcelo Claure in an interview with Andrew Ross Sorkin at the WeWork headquarters in New York City on February 10, 2020.
David A. Grogan | CNBC
SoftBank, Japan’s technology holding company, announced on Monday that Vision Fund Director Rajeev Misra and Chief Executive Officer Marcelo Claure were among the four directors who immediately resigned from the public̵7;s board of directors. ty.
Misra and Claure will continue in their executive positions. Katsunori Sago, Chief Strategy and Governor of SoftBank and Yasir O. Al-Rumayyan, board member of Saudi Arabia Public Investment Fund, also resigned from SoftBank.
SoftBank CEO Masayoshi Son is making changes to improve the perception of board independence. SoftBank added four new board members in June who were not involved in the company’s operations.
“The changes to our Board of Directors build on improvements we made in June, including making sure we have a larger proportion of outside Boards of Directors and further highlight SoftBank’s commitment to corporate governance, “Son said in a statement.
Son’s decision-making has been questioned several times in recent years. He invested billions of dollars in WeWork, propelling the startup to a private valuation of $ 47 billion, only to see the value of the company plummet in a failed attempt to list its shares. in 2019.
The Vision Fund, the Saudi-backed $ 100 billion private investment vehicle, changed its investment strategy after WeWork’s collapse and the pandemic stopped working. Recent changes include dragging back the pace of investment and finding companies with clearer paths to profitability. SoftBank has also struggled to raise money for a Second Vision Fund, originally intended to be a $ 104 billion investment vehicle.
Son’s move to invest in publicly traded technology derivatives is also questioned by investors as too risky.
However, SoftBank’s results have improved by 2020. SoftBank shares have risen more than 60% this year, outstripping the S&P 500, which has risen 12%. The Vision Fund, which owns more than 80 shares in tech companies worldwide, reported a record $ 7.6 billion profit in the three months ending Sept. 30. Misra begged. communities invest time in obtaining alternative returns rather than over-evaluating the results.