Uber board to consider vote to cut Kalanick influence

Uber board to consider vote to cut Kalanick influence”

Late on Friday, Sept. 29th, Uber's CEO Dara Khosrowshahi and other high-ranking execs suddenly found themselves in a quandary over how the former chief executive Travis Kalanick appointed two new directors without telling anyone.

The board, now expanded to 11 members, is preparing to vote on a series of measures to change the company's corporate governance and whether to accept a $10 billion stock sale to Japanese conglomerate SoftBank. They highlight the part of the proposal created to limit its former CEO's decision-making power by stating that anyone who has been an officer at the company can only return to the role if they get two-thirds board approval and 66.7 percent center of shareholder approval. The outcome of the sale is uncertain due to due to stipulations from early Uber investors who claim they won't sell to Softbank if Uber's structure of governing remains unchanged and insists that it bars Kalanick from returning as chief executive.

Kalanick's resignation came after months of controversies including sexual harassment in the workplace, trade secret theft allegations, a federal investigation and even a video of the former CEO berating an Uber driver.

And numerous proposals - including a mechanism to push Uber toward an IPO if more than a third but less than half the board support the move - are indeed unusual. Directors are divided about what role Kalanick should play and whether he should retain control over a large part of the board. To ensure that the public offering happens at that time, there is a provision that if more than one third, but less than one half, of the board wants an I.P.O., they can add directors until they have the control over the board they need to make the public offering happen. That suit was sent into private arbitration and the sides are in the process of selecting an arbitrator.

■ According to the proposal, if the Uber board seats now held by three directors - Ryan Graves, Arianna Huffington or Wan Ling Martello - are vacated, Mr. Khosrowshahi gains the power to nominate directors for those spots.

Among the issues up for debate, according to a September 30 report in the New York Times, are moving toward a one-share, one-vote system by removing rights attached to Class B and preferred shares and pushing the company toward a 2019 initial public offering by appointing more directors to the board if more than one-third, but less than half, are in favor of going public.

An initiative that would require a former employee (e.g., Kalanick) to get a two-thirds vote from the board and shareholders to be named CEO. Venture capitalist Shervin Pishevar, investor Stephen Russell and other shareholders threatened Monday to sue directors who voted for the plan, including Kalanick. But under the proposal, that would change to one vote per share.

■ The plan does allow Mr. Kalanick to keep his board seat, subject to the approval of Mr. Khosrowshahi.

Like this


03 October 2017
Chinese Vessels Keeping Close Eye on US Ships in South China Sea
China claims much of the South China Sea as its own territory, even though parts of it are also claimed by six other countries. North Korea has staged an apparent hydrogen bomb test and fired two ballistic missiles over Japan in recent weeks.

03 October 2017
Hawken's PC Version Is Shutting Down, Getting Removed From Sale
In March 2015 the game was sold to Reloaded, the team that took on APB which flopped quite badly following its launch. A year later Hawken was picked up by 505 Games who republished the game with promises of additional content.

03 October 2017
GW Pharmaceuticals PLC (GWPH) Expected to Post Earnings of -$1.39 Per Share
Howard Hughes Medical Institute acquired a new stake in GW Pharmaceuticals PLC- during the third quarter valued at about $166,000. The stock is now moving below its 20-Day Simple Moving Average of -6.11% with a 50-Day Simple Moving Average of -5.79 percent.

03 October 2017
Jason Aldean on Las Vegas mass shooting: 'It hurts my heart'
Owen, who had performed before Aldean, shared an update on Twitter as the shooting rampage unfolded. Police said Monday morning that Paddock took his own life after orchestrating the shooting.

03 October 2017
Who Is Cool Mom Kate Strucker on 'The Gifted'?
She's also one of the most fascinating characters on a familial level, as she's the daughter of a prominent mutant. Kelley's plans for Mutant registration most famously appeared in the 1981 storyline Days of Future Past .

03 October 2017
Night Shyamalan's Unbreakable Sequel Is Happening
To top it all off, American Horror Story star Sarah Paulson has also joined the cast. People haven't been this excited for an M.

03 October 2017
Ativo Capital Management Acquires $1.42 Million in Adobe Systems
They just need to take the company's market capitalization and divide it by the company's total sales over the past 12 months. VRTX share have rallied by 106.38% in percentage terms since the start of the year - and retreated -2.72% in the last month.

03 October 2017
It's true: HRs, strikeouts, walks all up among Major League Baseball playoff teams
The Rockies' progress in 2017 is nothing compared to that of the team that will be hosting them for the NL Wild Card on Wednesday. Although Los Angeles has been streaky, I believe this year they have the thing the Nats are still looking for and sweeps Arizona.

03 October 2017
FCC Chair Pai Approved Over Senate Dems' Objections
Pai is "an exemplary FCC Chairman who will fight for unserved and underserved Americans", Sen. In a speech , she said Pai had shown "disdain" for "important public interest principles".

03 October 2017
What Does Congress' Failure To Fund CHIP Mean For Philly Region?
Pregnant women and children in families of four earning up to $5,350 a month qualify for CHP+ coverage in Colorado. If CHIP is allowed to die, children formerly under this program will have zero affordable options to see a doctor.