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Why Are SoftBank Shares Trading Lower Today?

In This Article:

  • SoftBank Group Corp (OTC: SFTBF) (OTC: SFTBY) COO Marcelo Claure is in advanced negotiations to depart after clashing with founder Masayoshi Son over his compensation and responsibilities, Bloomberg reports.

  • Claure agreed to sell a majority stake in his cellphone distributor to SoftBank in 2013, becoming one of Son’s top lieutenants and a billionaire in the process.

  • Still, Claure, who was SoftBank’s second-highest paid executive in the latest financial year, has often pushed for much more money and authority.

  • The report adds that Claure pressed for as much as $1 billion in compensation because of his contributions, including the turnaround and sale of Sprint Corp and the listing of troubled WeWork Inc (NYSE: WE).

  • Claure also advocated for a spinoff of the Latin American investment fund he oversees for SoftBank.

  • Son saw little merit in a spinoff for SoftBank shareholders and thought it would complicate management and governance.

  • In the past, Claure floated the idea of resigning without actually doing so. The report adds that negotiations are ongoing, and the COO could still decide to remain at SoftBank.

  • Price Action: SFTBF shares traded lower by 8.17% at $41.38 on the last check Thursday.

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