- After less than three and a half years in the position
- Accolades, praise, thanks and good wishes for Mathrani
- David Tolley taking over temporarily
- Search for a successor
- Mathrani said 105 words
(exechange) — New York, May 16, 2023 — Sandeep Mathrani, chief executive of WeWork, leaves his position. As announced by WeWork Inc. in a news release and in a regulatory filing published on Tuesday, May 16, 2023, Sandeep Mathrani leaves his post as chief executive officer at the coworking giant, after less than three and a half years in the role, effective May 26, 2023.
WeWork will undertake a search for a successor.
Sandeep Mathrani’s duties as CEO will be taken over temporarily by David Tolley, a former Chief Financial Officer at Intelsat S.A., as interim Chief Executive Officer.
Tolley has already been a member of the board of directors of WeWork. Generally speaking, most director-turned-CEO appointments occur following a sudden resignation of the outgoing CEO and signal a lack of preparedness on the company’s part to groom internal talent. Directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Tolley understands the expectations and dynamics of the board and has knowledge of WeWork’s organization, risk-management practices and strategy.
Mathrani will be Director at Sycamore
Sycamore Partners announced that Sandeep Mathrani has joined the firm as a Director strengthening the firm’s real estate expertise. Sandeep Mathrani will lead Sycamore’s real estate activity.
Sycamore announced the move on Tuesday, May 16, 2023.
Sycamore is a private equity firm based in New York. The firm specializes in retail, consumer, and distribution-related investments and partners with management teams to seek to improve the operating profitability and strategic value of their business. With approximately $10 billion in aggregate committed capital raised since its inception in 2011, Sycamore Partners’ investors include leading endowments, financial institutions, family offices, pension plans and sovereign wealth funds.
“Stepping down/resign”
WeWork said: “Sandeep Mathrani will be stepping down as Chairman, CEO and as a director of WeWork effective May 26th.”
WeWork further said: “On May 10, 2023, Sandeep Mathrani notified WeWork Inc. (the “Company”) of his intention to resign from his position as Chief Executive Officer (“CEO”) of the Company and as Chairman and a member of the Company’s Board of Directors (the “Board”), in each case, effective May 26, 2023.”
“Not the result of any disagreement”
WeWork stated, regarding the change: “The resignation is not the result of any disagreement with the Company with respect to any matter relating to the Company’s operations, policies or practices. Mr. Mathrani did not serve on any committee of the Board.”
Share price decline since May 2022
The announcement follows a decline in WeWork Inc.’s share price of 94% since May 2022.
In the position of CEO since 2020
Sandeep Mathrani became CEO of the Company in 2020.
Sandeep Mathrani, WeWork’s Chief Executive Officer, has served as CEO and a director of WeWork since February 2020, and as Chairman of the Board since March 2022.
Mathrani most recently served as Chief Executive Officer of Brookfield Properties’ Retail Group and Vice Chairman of Brookfield Properties from 2018 to 2020.
Prior to that, he served as Chief Executive Officer of GGP Inc. for eight years, during which the company was recapitalized in November 2010, experienced eight years of growth, and in August 2018 was sold to Brookfield Property Partners.
Prior to joining GGP in 2010, Mathrani was President of Retail for Vornado Realty Trust, where he oversaw the firm’s U.S. retail real estate division and operations in India comprised principally of office properties.
Before that, he spent eight years as Executive Vice President at Forest City Ratner, where he was tasked with starting and growing a new platform of retail properties across the five boroughs of New York City.
Mathrani currently serves as a member of the Board of Directors of Dick’s Sporting Goods, Tanger Factory Outlet Centers, Inc., and Bowlero Corporation, and also serves on the Management Committee of WeWork Capital Advisors LLC.
Previously, Mathrani served as a member of the Board of Directors of Host Hotels & Resorts, Inc. and was the 2019 Chair of NAREIT.
He also served on the Executive Board and Board of Trustees for the International Council of Shopping Centers (ICSC).
Mathrani earned a Bachelor of Engineering, a Master of Engineering and a Master of Management Science from Stevens Institute of Technology.
105 words by Sandeep Mathrani
In the news release announcing his departure as CEO of WeWork Inc., Sandeep Mathrani received accolades, praise, thanks and good wishes.
In announcing his departure, Sandeep Mathrani said 105 words.
“Meet and beat every challenge”
Sandeep Mathrani stated: “It has been a privilege to lead WeWork during a notable transformation. Over the last three years we have restored the brand, grown revenue, right-sized the company, restructured our debt, and developed new product lines. I am grateful to have been able to lead such a resilient group of employees who through it all stepped up to meet and beat every challenge. I am firm in my belief that this is WeWork’s moment. Having worked with David Tolley over the last several months, I know that his financial acumen and leadership will keep WeWork moving forward as it continues to disrupt and lead the industry.”
41% of CEOs are forced out or fired
When CEO departures are announced, exechange determines the Push-out Score on a scale of 0 to 10 to assess how likely it is that the chief executive was pushed out or felt pressure to leave the position, with 0 being most likely a voluntary move and 10 being most likely a forced exit. Anything over a 5 indicates that there are valid reasons to believe an executive may have been pushed out.
Of the 319 CEO departures in the Russell 3000 Index evaluated over the past 12 months (May 16, 2022, to May 15, 2023), the average Push-out Score was 6.2, according to exechange data. References to conduct issues, disagreements and irregularities lead to the highest Push-out Scores. When performance issues, pursuit of other opportunities or time with family were cited as departure reasons, the average Push-out Scores were also significantly elevated.
Around 41% of the CEO departure events from the past 12 months received Push-out Scores of 8 or higher.
In other words, in the past 12 months, two in five departing CEOs were forced out or fired.
Push-out Score for Sandeep Mathrani’s move determined
The Push-out Score regarding Sandeep Mathrani’s move is explained point by point in the exechange report.
exechange reached out to WeWork and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 21.2023 ($).