Uber Technologies has much in discussion in the coming week. The company plans to vote on a board reorganization and if they should to engage in a key stock deal with SoftBank on Tuesday. These changes can potentially redesign the company’s entire governance.
The board restricting can limit cofounder and former Chief Executive Travis Kalanick’s power as both a shareholder and board member. According to Bloomberg, this restructure may spearhead the beginning of the largest private stock sale in history.
Friday, Kalanick appointed two new board members without notifying the company nor other members of the board. One being Xerox Chief Executive Ursula Burns and the other previous Merrill Lynch Chief Executive John Thain. It was said that Kolinick did this with goal to be two steps ahead of the changes proposed to the structure of the board.
Kalanick said in a statement, “I am appointing these seats now in light of a recent Board proposal to dramatically restructure the Board and significantly alter the company’s voting rights,”. The changes being proposed significantly reduce not only Kalanick’s but other shareholders voting power.
One of the many proposals being discussed is that Kalanick is to lose one of the three board seats that he controls. A representative from SoftBank, whom is discussion of closing a game changing investment in Uber, would now gain access to this seat.
Most of proposals being discussed limit Kalanick’s influence on the board and within the company, which can explain why he chose to appoint two members to the empty board seats he controlled without the slightest bit of notice.
The proposals are being presented to the Uber board on October 3rd.