Uber’s board is planning to oust the former CEO Travis Kalanick of his power as he introduced two new board members without informing anyone including the CEO of Uber, Dara Khosrowshahi.
Travis after losing his company still possesses three out of eleven seats on the board. But after his unprecedented act, the board’s members and Dara are quite disappointed by him.
According to Bloomberg, “Travis appointed two new members to Uber’s Board without discussing it with me or the Board of Directors more broadly. Anyone would tell you that this is highly unusual,” Dara said.
Bloomberg which is familiar with the matter reported that the company is planning to hold a vote Tuesday on changes to its board and whether it should sign a $10 billion stock deal with the Japanese tech giant SoftBank.
On this account, the company has come to conclusion to limit the governance proposal that says “shift Uber shareholders to one share, one vote” to which Benchmark (containing the majority shareholder of Uber) agreed but Kalanick instantly refused.
Kalanick’s act of abruptly introducing two new board members, former Merrill Lynch CEO John Thain and former Xerox CEO Ursula Burns has cost him a lot that he might not have even imagined.
Right now, Uber is aiming to overthrow Kalanick from one of his seats and give the possession to SoftBank.
“Kalanick’s remaining seat would reportedly require Khosrowshahi’s approval. Another caveat is that it would need to be filled by a C-suite member of a current Fortune 100 company. It’s unclear what will happen now that Kalanick has tried to fill the other two seats himself,” reported by Business Insider.