After Sequoia, now Tokyo-based venture firm SoftBank is entangled in trouble but well for different reasons of course.
The American law firm Boies Schiller & Flexner sent a request letter to SoftBank’s board dated Jan. 20, asking to investigate Nikesh Arora’s qualifications and track record as president of the firm.
Also one of Sprint Corp’s investor which is managed by SoftBank, sent a letter to the venture firm asking Nikesh Arora’s removal as President, reports Bloomberg.
Nikesh Arora’s advisory role to the private equity firm Silver Lake has raised questions about his conflict of interests and suggests past wrongdoings and incompetent business decisions. The letter also says that Arora is getting compensated by Silver Lake for helping with potential technology company investments which he is supposed to be closing for SoftBank.
The investors have asked for an internal investigation by an independent firm.
Matthew Schwartz, a partner at Boies Schiller & Flexner, in the letter wrote, “Poor investment performance and a series of questionable transactions during his tenure. Despite these issues, the SoftBank board saw fit to make Mr. Arora the third-highest paid executive in the world without any track record of accomplishment at the company.”
SoftBank has denied to Bloomberg and called the letter “unsubstantiated allegations” from “unidentified shareholders.” The firm has strongly backed Arora and said it is completely aware of his involvement with Silver Lake.
Nikesh Arora had earlier worked with Google and had exited the company as chief business officer. Then in 2007, he joined Silver Lake but has clarified that his involvement with the firm has been ‘minimal’ since he joined SoftBank in 2014.
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