Ex-Uber CEO Travis Kalanick stunned the corporate’s board final week when he appointed two new board members.
Uber’s board of administrators accepted reforms that restrict the ability of Travis Kalanick, the ride-hailing firm’s cofounder and former CEO.
The board voted to remove its super-voting construction, by which early shareholders had 10 instances the voting energy, to a one vote per share mannequin, in response to a supply acquainted with the vote. The board additionally voted to develop the variety of board members to 17, including six seats to dilute latest additions made by Kalanick.
The vote got here after Kalanick, who resigned in June however stays on the corporate’s board, appointed two new members on Friday, a transfer different administrators described as “an entire shock.” The board was accepted the sale of $10 billion of inventory to Japanese web big SoftBank.
“Right this moment, after welcoming its new administrators Ursula Burns and John Thain, the Board voted unanimously to maneuver ahead with the proposed funding by SoftBank and with governance adjustments that will strengthen its independence and guarantee equality amongst all shareholders,” the board mentioned in a press release concerning the vote. “SoftBank’s curiosity is an unimaginable vote of confidence in Uber’s enterprise and long-term potential, and we look ahead to finalizing the funding within the coming weeks.”
The board additionally accepted a proposal that requires two-thirds of the board to approve of any new CEO appointments. Kalanick, who was compelled out by investor strain, was mentioned to be making an attempt to engineering a plan to return as the corporate’s CEO.
The vote comes amid a tumultuous 12 months for the ride-hailing startup, which has been rocked by a slew of scandals, together with sexual harassment allegations that resulted in additional than 20 Uber staff being fired. The corporate has been caught utilizing a secretive Greyball device to keep away from native authorities. The corporate can be defending itself in opposition to a trade-secret theft lawsuit from Waymo, a self-driving automobile enterprise run by Alphabet, Google’s mum or dad firm.
Kalanick can be presently dealing with a lawsuit from one among Uber’s early traders that alleges he misled stockholders to be able to achieve management of three board seats. Kalanick has responded by calling the lawsuit a “public and private assault.”
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