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Uber CEO to take leave, leadership team to run company
14 June 2017, 07:36 | Frank Carlson
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It is going to be even harder for Uber as the company is still looking for a clear No. 2 who could run things in Kalanick's stead.
- February 2: Uber CEO Travis Kalanick quits President Trump's council of business leaders amid mounting pressure from employees and customers over the immigration order.
Kalanick has been criticized for his management styles, and for allowing Uber's corporate culture to harbor some abusive behaviors.
A 13-page report, issued by outside attorneys including former U.S. Attorney General Eric Holder, recommends Uber makes the board more independent, and tie executive pay to ethics, diversity.
While "tone at the top, trust, transformation, and accountability" are proposed to be "remedial measures", the first specific recommendation regarding leadership changes is "review and reallocate the responsibilities of Travis Kalanick". It calls for some of Kalanick's duties to be reallocated and emphasizes the importance of the company's plan to hire a chief operating officer.
But Uber's human resources chief credited Fowler with driving this change, according to an account Tuesday of a company-wide meeting. It also suggested increased support of Uber's human resources department. The executive summary from Covington & Burling LLP, made public as Uber addressed staff in an all-hands meeting at its San Francisco headquarters, made broad recommendations that were approved by the company's seven-member board.
The internal probe was based on a litany of allegations made by former Uber engineer Susan Fowler, including that she was discriminated against based on her gender and that the company ignored her repeated complaints of sexual harassment at the hands of her supervisor, basing it on the fact that he was a "high performer".
Uber now operates in hundreds of cities and more than 80 countries, accounting for bookings of some $20 billion a year ago. The U.S. Department of Justice is now investigating Uber for letting its drivers use an app that helps them avoid transportation regulators. It said romantic or intimate relationships between employees that report to each other should be prohibited. His investigation's results were released Tuesday. Its president, Jeff Jones, quit in March after less than six months.
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David Bonderman, another Uber board member, responded, "Actually what it shows is it's much likely to be more talking". Visit MarketWatch.com for more information on this news.
There are plenty of weightier recommendations contained in the report. He later apologized for the "disrespectful" comment in an email.
Thanks to an aggressive growth strategy, Uber now operates in cities on six continents.
The proposed changes amounted to a rejection of the methods and culture that Uber has used to build itself into a almost $70 billion company that has upended the transportation status quo worldwide.
"We really don't know too much about this yet, but a couple weeks ago, his mom died in a boating accident, and his dad landed in the hospital - so I mean really disgusting personal loss".
Might need a few more iterations than just one, but baby steps, you know.
Holder had this impression, too, and recommended that Uber start doing performance reviews of company leaders, and also that it start using financial incentives to "reward conduct that is consistent with the cultural environment" the company is now trying to create.
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