Experts: Uber must change at top to cure culture woes
Holder’s proposals have been adopted, will be made public Tuesday.
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.”