Austin American-Statesman

Experts: Uber must change at top to cure culture woes

Holder’s proposals have been adopted, will be made public Tuesday.

- By Tom Krisher and Barbara Ortutay Uber

Uber must get rid of leaders who tolerate bad behavior and hire people who don’t, experts say, as the ride-hailing company gets ready to announce significan­t changes to its culture and management.

Uber’s board has adopted the recommenda­tions of former Attorney General Eric Holder, who investigat­ed its toxic culture of harassment and bullying. Those will be revealed to employees and made public on Tuesday.

Experts interviewe­d by The Associated Press say CEO Travis Kalanick should step aside or at minimum change his behavior for the company to make progress. Uber’s board is discussing a leave of absence for Kalanick, the combative co-founder who has already acknowledg­ed he needs to grow up and get management help. No decision has yet been made, according to a person briefed on the matter who didn’t want to be identified because board discussion­s aren’t normally made public.

A CEO’s behavior sets the tone for the rest of the company, says Cindy Schipani, a business law professor at the University of Michigan who has taken part in investigat­ions of corporate conduct. She says Kalanick should resign and save the board from having to oust him. “That’s where the culture comes from. It has to change at the top and he has to recognize what he does, his actions, speak louder than anything put on paper,” she said. It’s unlikely the board could remove Kalanick because of Uber’s stock ownership structure.

Jennifer Chatman, a business professor at the University of California Berkeley who also does corporate investigat­ions, says if a leave is granted, she would be surprised if Kalanick came back in the top spot.

“He lacks the ability to set an appropriat­e tone for this organizati­on,” she said. “He lacks the kind of presence that’s needed for a larger organizati­on.”

 ?? SAKLUMA / ASSOCIATED PRESS PAUL ?? Uber CEO Travis Kalanick should step aside or at minimum change his behavior, experts say.
SAKLUMA / ASSOCIATED PRESS PAUL Uber CEO Travis Kalanick should step aside or at minimum change his behavior, experts say.

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