Uber CEO to take leave, leadership team to run company

Uber CEO to take leave, leadership team to run company

Uber CEO to take leave, leadership team to run company

Kalanick told employees about his decision Tuesday, June 13, 2017, in a memo.

Among the many recommendations made by the independent report provided to Uber by law firm Covington & Burling (also known as the Eric Holder report), is that Uber start to follow the "Rooney Rule" for its hiring practices.

The need for a new approach was highlighted by former Uber engineer Susan Fowler, who published a blog post in February in which she said that she was sexually harassed at the company and that both managers and the human resources unit ignored her complaints. Ms. Fowler complained of wide-ranging sexual harassment, gender discrimination and retaliation for reporting misdeeds. "Upper management told me that he "was a high performer" (i.e. had stellar performance reviews from his superiors) and they wouldn't feel comfortable punishing him for what was probably just an innocent mistake on his part".

The company shared the 47 recommendations, which were unanimously adopted by the board on Sunday, with employees during an approximately hour-long all-staff meeting at its headquarters in San Francisco.

Some of those company values should be eliminated entirely, including those that are redundant or have been used to "justify poor behavior", including "Let Builders Build", "Always Be Hustlin'", and "Meritocracy and Toe-Stepping".

One of the main points of the report involves decentralizing power from Kalanick and giving some responsibilities to other executives. During Kalanick's leave, his leadership team will run the troubled company. Kalanick said he needs time to grieve the recent death of his mother.

"The ultimate responsibility, for where we've gotten and how we've gotten here rests on my shoulders", he wrote in the email, via Buzzfeed News. The board will also create an oversight committee to monitor issues such as diversity and an audit committee to oversee spending, and improve the company's gender and racial diversity.

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The recommendations arising from the report, which has not been made public, represent a stinging repudiation of Uber's no-holds barred leadership and culture, and Kalanick in particular. The report also recommends adding more independent directors and replacing its chairman, Uber co-founder Garrett Camp, with an independent chairman.

"Actually what it shows is it's much likely to be more talking", Uber board member David Bonderman responded.

The report recommends that Uber makes sure its workforce becomes more diverse from the top down. In the US, less than a third of the company's workers are female.

Travis Kalanick has been the driving force behind Uber, taking a spur-of-moment idea and turning it into the world's most valuable venture-funded tech startup. While the company has not gone public yet, its valuation has climbed to almost $70 billion. The Department of Justice is investigating Uber's use of secret software called Greyball that helped the company evade law enforcement.

"Having a good reputation for ethics is a competitive advantage", Holt said. There will also be a number of facile changes meant to smooth out the gritty culture Kalanick fostered, including renaming the company's main conference center from the War Room to the Peace Room.

"Today at Uber's all-hands meeting, I directed a comment to my colleague and friend Arianna Huffington that was careless, inappropriate, and inexcusable", Bonderman wrote in an e-mailed statement.

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