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Uber board agrees governance reforms and Japanese investment

Uber board agrees governance reforms and Japanese investment

One being expanding the board of directors in the company from 11 now to 17 directors.

Governance changes approved by the board hinge on the SoftBank investment taking place.

In a letter to Uber employees from Khosrowshahi, which was described as "disrespectful" by Inc's Justin Bariso, the CEO responded to Kalanick's appointment of Thain and Burns.

Two of the six new seats would go to SoftBank, the sources said.

While Khorowshahi has worked to portray Uber as a company cleaning up its image and building internal harmony, the board's debate over corporate governance proposals made for a contentious weekend with Kalanick.

"Our new CEO is looking forward to meeting with the commissioner next week", Uber said in a statement. A series of scandals triggered a lawsuit this summer from major investor Benchmark, which alleged that Kalanick committed fraud in persuading investors to grant him those board seats. According to Bloomberg, Benchmark encouraged SoftBank to agree to limit Kalanick's voting power as part of the terms of its investment. Kalanick was forced to resign as CEO in June after a series of missteps, including the controversy surrounding the company's use of "Greyball" software, which helped drivers avoid controls and accusations of sexual harassment.

Uber's license expired on 30 September but its roughly 40,000 drivers will be able to take passengers for the Silicon Valley company until an appeals process has been exhausted, which could take several months.

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The new voting system adopted by the board is particularly damaging for Kalanick's influence: board members will now each have one vote per share, regardless of the class of shares they own. The provision is meant to restrict.

Kalanick also cheered Tuesday's board vote, despite its intention to curtail some of his power.

In a corporate statement, Uber said "SoftBank's interest is an incredible vote of confidence". In an e-mail to employees, Khosrowshahi called the decision "disappointing, " writing, "Travis appointed two new members to Uber's Board without discussing it with me or the Board of Directors more broadly".

Not everyone was happy with today's results.

Shareholders will now have one vote per share, ending a class of supervoting shares in a move that substantially decreases the power of Kalanick and some other early investors, the report said.

Per the approved proposals, certain Uber shareholders will lose some of their power - including Kalanick himself. "Under [new CEO Dara Khosrowshahi's] leadership and with strong guidance from the Board, we should expect great things ahead for Uber". CEO Ursula Burns, to Uber's board without consulting other directors. Following the disclosure of an internal report that Uber was aware of potentially questionable decisions from former Waymo engineer Anthony Levandowski prior to purchasing his startup, a judge ruled that the trial would be delayed from its original start date of October 10 to December 4. In a public apology published in the Evening Standard of London, he said that while "Uber has revolutionised the way people move around in cities around the world, it's equally true that we've got things wrong along the way". "Irrespective of whether we did everything that is being said about us in London today (and to be clear, I don't think we did), it really matters what people think of us". "You haven't found that yet".

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