Chicago Sun-Times

Uber CEO Kalanick steps away indefinite­ly

Probe of company’s culture reveals need for more accountabi­lity

- Marco della Cava @ marcodella­cava

Uber CEO Travis Kalanick announced Tuesday he will take an indefinite leave of absence as the ride- hailing company starts to institute sweeping recommenda­tions from an internal investigat­ion into Uber’s culture and governance that was sparked by claims of pervasive sexism and questionab­le corporate practices.

Kalanick has been largely absent from the company’s San Francisco headquarte­rs since late May, when his mother was killed in a boating accident and his father was seriously injured.

“For the last eight yearsmy life has always been about Uber,” Kalanick said in a statement. “Recent events have brought home for me that people are more important than work, and that I need to take some time off of the day- today to grieve mymother, whom I buried on Friday, to reflect, to work on myself, and to focus on building out a worldclass leadership team.”

Kalanick said he would remain available for counsel on the company’s “most strategic decisions.”

In his absence, Uber will be run by Kalanick’s leadership team, which consists of 14 senior executives including CTO Thuan Pham, U. S. operations chief Rachel Holt, chief product officer Jeff Holden and board member and first hire Ryan Graves.

Kalanick’s decision came the same day as the company — under fire for fostering a sexist and cutthroat office culture that didn’t shrink from shady tactics — released recommenda­tions from a report by former U. S. attorney general Eric Holder that will also lessen some of his influence at the company. The nearly 50 recommenda­tions, developed in the 31⁄ months 2 since the probe started, targeted everything from Kalanick’s role and control to ways for senior leadership to hold managers accountabl­e for a cultural turnaround.

The recommenda­tions include forming a board oversight committee ( Kalanick and co- founder Garrett Camp control voting rights in the privately held company), rewriting Uber’s cultural values, requiring leadership training and making inclusion and diversity a high priority.

Monday, Nestle executive Wan Ling Martello was appointed as an independen­t member of its board of directors. It recently hired Frances Frei, a Harvard Business School expert on cultural transforma­tions.

The first line of the Holder report, compiled by Holder’s firm Covington & Burling and presented to Uber’s board a week ago, cites former engineer Susan Fowler’s explosive February blog post as the catalyst for the introspect­ive turn at Uber.

Fowler, a former engineer at Uber who now works at start- up Stripe, described sexual harassment by a boss that was ignored by human resources because the manager was considered too valuable; she later found other women had experience­d similar problems with the same manager. Women complainin­g to human resources were ignored or, in some cases, chastised for reporting. Tuesday, in response to the investigat­ion recommenda­tions, Fowler was less than enthusiast­ic on Twitter, calling the company’s actions to date “all optics.”

The report lands a day afterMonda­y’s resignatio­n of senior vice president Emil Michael, at the center of many Uber controvers­ies, as well as last week’s firing of 20 employees. More dismissals are expected.

 ?? GETTY IMAGES ?? “People are more important than work,” Travis Kalanick says.
GETTY IMAGES “People are more important than work,” Travis Kalanick says.

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