SoftBank COO to leave after seeking $1.35 billion in compensation

LONDON (BLOOMBERG) - SoftBank Group chief operating officer Marcelo Claure is making preparations to depart from the Japanese conglomerate after clashing with founder Masayoshi Son over his compensation and responsibilities, people familiar with the matter said. 

The 51-year-old Bolivian-American agreed to sell a majority stake in his cellphone distributor to SoftBank in 2013, becoming one of Mr Son’s top lieutenants and a billionaire in the process. Still, Mr Claure, who was SoftBank’s second-highest paid executive in the latest financial year, has often pushed for much more money and authority. 

In recent months, he has pressed for as much as US$1 billion (S$1.35 billion) in compensation because of his contributions, including the turnaround and sale of Sprint and the listing of troubled WeWork. He also advocated for a spin-off of the Latin American investment fund he oversees for SoftBank, Bloomberg News reported last year.

While Mr Claure had floated the idea of resigning in the past without actually doing so, the negotiations this time are advanced, and the COO is planning to leave the company over the next few weeks, one person said.

SoftBank declined to comment. Its shares rose 1.9 per cent in Tokyo trading on Friday (Jan 28).

Mr Claure argued that the Latin American spin-off would help build the business and create value for SoftBank, while boosting his own compensation, people familiar with the matter said at the time. Mr Son saw little merit in a spin-off for SoftBank shareholders and thought it would complicate management and governance, the people said. Bloomberg News reported in October it was possible that Mr Claure would leave SoftBank over the disagreement.

Mr Claure, who was promoted to COO in 2018, raised the idea of much higher compensation because of work in tackling difficult operational challenges for Mr Son. Mr Claure took over as chief executive officer of Sprint and led the US carrier’s turnaround, culminating in SoftBank selling the business to T-Mobile US in 2020. 

He then helped to salvage an investment in WeWork after the company’s failed initial public offering (IPO) in 2019. He remains chairman of the office-sharing business, which finally went public in October under the leadership of CEO Sandeep Mathrani.

Mr Son and SoftBank have had a tumultuous year. The Vision Fund had several blockbuster successes, including South Korean e-commerce pioneer Coupang and delivery service DoorDash, which pushed SoftBank's stock to more than 10,000 yen (S$117) in March.

But Mr Son’s company has suffered from a barrage of bad news in recent months, including China’s crackdown on its technology companies. SoftBank’s most valuable single investment, Alibaba Group Holding, has been one of the primary targets of Beijing’s antitrust push. SoftBank is also a major backer of Didi Global, the ride-hailing giant that said it would delist from United States exchanges only five months after its IPO.

Beyond China, Indian digital payments pioneer Paytm, another SoftBank portfolio company, suffered one of the worst IPO debuts ever by a major technology company.

Then in December, US antitrust officials sued to block SoftBank’s sale of chip designer Arm to Nvidia. Bloomberg News reported this week that Nvidia is quietly preparing to abandon its effort to acquire Arm given the regulatory pushback.