JPMorgan CEO Jamie Dimon says WeWorks IPO debacle taught him a number of key classes – Wikibusiness
- Jamie Dimon, the CEO of JPMorgan, mentioned he realized a number of key classes from WeWork’s failed preliminary public providing.
- The banking titan mentioned in an interview with CNBC that the scenario reminded him of the significance of getting a robust company governance construction established earlier than an organization recordsdata its IPO paperwork.
- The feedback come after JPMorgan performed a lead function within the office-leasing big’s tried itemizing.
- For extra WeWork information, click on right here.
JPMorgan CEO Jamie Dimon mentioned all people concerned in WeWork’s failed preliminary public providing ought to study from it, together with himself.
“I think there are lessons to be learned about these valuations, how you go public, and how you treat the public shareholder,” Dimon mentioned on CNBC Tuesday. “Those lessons should be learned by everybody who wants to go public.”
Dimon mentioned the scenario reminded him how essential it’s for a corporation to have the right company governance construction in place earlier than submitting its IPO paperwork.
WeWork’s company governance was one among its greatest factors of criticism due to its lack of feminine board members and the outsized management held by cofounder Adam Neumann.
“You should have your independent board members before an S-1,” Dimon mentioned within the interview. “You have to make sure you take a lot of time to go through how you disclose this stuff.”
He continued: “Shareholders should be treated like partners. They shouldn’t be treated like what’s the highest price I can get.”
Dimon additionally mentioned he doesn’t agree that WeWork had a $47 billion valuation simply because one investor paid that value within the non-public markets.
“That’s not price discovery,” he added. “Price discovery is when a lot of smart people around the world knowing all the facts can buy and sell all the time.”
When requested if he feels sorry for Neumann, Dimon mentioned: “I’m not going to go there, I don’t know.”
JPMorgan held a high advisory function within the firm’s IPO. The financial institution additionally provided WeWork $5 billion in debt funding, however the firm opted for SoftBank’s rescue deal as an alternative.