When Dara Khosrowshahi assumed control as Uber CEO from Founder Travis Kalanick, nobody thought it would have been a simple switch. In a little more than a month, the new CEO has needed to manage various significant emergencies left in the wake of Kalanick’s residency. At present, high inconvenience is shaking the organization, and the board is set to vote on restricting Kalanick’s impact.
The most recent drama at the ride-sharing startup originates from a choice made a year ago by the organization’s board to give Kalanick control of three seats. As indicated by the New York Times, Khosrowshahi brought a proposition , co-written by Goldman Sachs, to load up individuals on Thursday that would, in addition to other things, get control over Kalanick’s voting power. The move was all the while planned to give the CEO the control he needs to run the organization and reassure the Japanese financial specialist SoftBank which purportedly consented to contribute $10 billion on the condition that Kalanick is ensured not to come back to his old position.
Detecting his control on the state of affairs disappearing, Kalanick sprang into action on Friday evening and utilized his energy to designate two new board individuals: Ursula Burns, the previous CEO of Xerox, and John Thain, the previous head of Merrill Lynch. Presently, every seat on the 11-member board has been filled, and Khosrowshahi is apparently miserable about the unexpected choice. Recode got an internal letter that the new CEO sent to staff that says, in part:
“I wanted to update you on some disappointing news from today. Travis appointed two new members to Uber’s board without discussing it with me or the board of directors more broadly. Anyone would tell you that this is highly unusual.
If your family or friends ask you about it, here is our press statement:
“The appointments of Ms. Burns and Mr. Thain to Uber’s Board of Directors came as a complete surprise to Uber and its Board. That is precisely why we are working to put in place world-class governance to ensure that we are building a company every employee and shareholder can be proud of.”
Per Bloomberg, the board will meet on Tuesday to vote on the proposition to move to a structure in which investors get one vote in favor of one offer. Gizmodo has contacted Uber for input on the nature of Tuesday’s executive meeting.