A chief executive officer ( CEO ), also known as a chief executive or managing director , is the top-ranking corporate executive charged with the management of an organization , usually a company or a nonprofit organization .
111-416: Travis Cordell Kalanick ( / ˈ k æ l ə n ɪ k / ; born August 6, 1976) is an American businessman best known as the co-founder and former chief executive officer (CEO) of Uber . Previously he worked for Scour , a peer-to-peer file sharing application company, and was the co-founder of Red Swoosh , a peer-to-peer content delivery network that was sold to Akamai Technologies in 2007. Kalanick
222-481: A ghost kitchen startup under the name CloudKitchens , which was valued at $ 15 billion as of 2021. Kalanick was born on August 6, 1976, and grew up in the Northridge neighborhood of Los Angeles. Kalanick's parents are Bonnie Renée Horowitz Kalanick (née Bloom) and Donald Edward Kalanick. Bonnie, whose family were Viennese Jews who immigrated to the U.S. in the early 20th century, worked in retail advertising for
333-427: A leave of absence and reduce his level of control over Uber's operations. On June 13, 2017, it was announced that Kalanick would take an indefinite leave of absence from Uber, although he continued to work without the approval of the company's board. On June 20, 2017, Kalanick resigned as CEO after five major investors, including Benchmark Capital, demanded his resignation in a letter. Uber added an in-app tipping option
444-608: A " dark horse " candidate, Expedia CEO Dara Khosrowshahi , even though Khosrowshahi had strongly opposed any further operational role for Kalanick. During his presentation, Khosrowshahi included a slide entitled, "There cannot be two CEOs." Uber began to negotiate a tender offer with Japanese software conglomerate SoftBank in September 2017. The offer included an agreement to add six new seats to Uber's board, which would dilute Kalanick's influence over it. On September 29, Kalanick unilaterally appointed Ursula Burns and John Thain to
555-731: A 2005 study claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases". Cases involving more than US$ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding. The largest bankruptcy in history was of the US investment bank Lehman Brothers Holdings Inc., which listed $ 639 billion in assets as of its Chapter 11 filing in 2008. The 16 largest corporate bankruptcies as of December 13, 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as
666-441: A Chapter 11 bankruptcy, the debtor corporation is typically recapitalized so that it emerges from bankruptcy with more equity and less debt, a process through which some of the debtor corporation's debts may be discharged. Determinations as to which debts are discharged, and how equity and other entitlements are distributed to various groups of investors, are often based on a valuation of the reorganized business. Bankruptcy valuation
777-464: A blog post that argued that the "connection between tipping and quality of service can be weak. Many people tip because it's expected." Kalanick's refusal to allow for in-app tipping "contributed to the perception of Uber as the unfeeling, win-at-all-costs player in ride-hailing, particularly compared to Lyft", which did allow tipping. In December 2016, it was announced that Kalanick would join several other high-profile CEOs as an economic advisor on for
888-727: A company focused on the redevelopment of distressed real estate assets; he also announced that he would serve as its CEO. CSS subsidiary CloudKitchens , a ghost kitchen managing company, took a controlling interest in U.K.-based startup FoodStars in June 2018. Kalanick personally invested $ 300 million in the startup, and in November 2019, the Wall Street Journal reported that Saudi Arabia's sovereign wealth fund completed an agreement with CloudKitchens in January 2019 to invest $ 400 million in
999-485: A company's business decisions, including those in operations, marketing, business development , finance, human resources , etc. The use of the CEO title is not necessarily limited to describing the head of a company. For example, the CEO of a political party is often entrusted with fundraising, particularly for election campaigns. In some countries, there is a dual board system with two separate boards, one executive board for
1110-452: A contentious exchange on an internet forum later that year, American investor Mark Cuban invested $ 1.8 million into the company, leading to further investments from Cuban's contacts. Kalanick was able to hire more programmers, and c. 2006 , he moved to Thailand with his software team for two months. In 2007, competitor Akamai Technologies acquired Red Swoosh for approximately $ 19 million. Kalanick made $ 2 million on
1221-402: A facade of charm and eloquence. Traits such as courage and risk-taking, generally considered desirable, are often found alongside these psychopathic tendencies. Tara Swart, a neuroscientist at MIT Sloan School of Management , has suggested that individuals with psychopathic traits thrive in chaotic environments and are aware that others do not. As a result, they may intentionally create chaos in
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#17328693890331332-462: A formal delegation of authority regarding business administration . Typically, responsibilities include being an active decision-maker on business strategy and other key policy issues, as well as leader , manager, and executor roles. The communicator role can involve speaking to the press and to the public, as well as to the organization's management and employees; the decision-making role involves high-level decisions about policy and strategy. The CEO
1443-500: A higher price for divisions or other assets than a chapter 7 liquidation would be likely to achieve. Section 362(d) of the Bankruptcy Code allows the court to terminate, annul, or modify the continuation of the automatic stay as may be necessary or appropriate to balance the competing interests of the debtor, its estate, creditors, and other parties in interest and grants the bankruptcy court considerable flexibility to tailor relief to
1554-530: A large portion of their shares to Kalanick when he took the CEO position, giving him a significant degree of control over the company. In October 2010, the San Francisco Municipal Transportation Agency served UberCab with a cease and desist order, warning that they were in breach of regulations in the city and could face significant fines if they continued to operate as a taxicab company without appropriate permits. Kalanick directed
1665-529: A penthouse in New York City for $ 36.4 million. In April 2020, he bought a home in Los Angeles for $ 43.3 million. Kalanick dated Gabi Holzwarth, a violist and business development manager, from 2014 to late 2016. In 2017, Holzwarth told The Huffington Post she was glad to be out of Uber’s orbit, which she described as a deeply misogynistic environment and an "unhealthy world of impossible standards" that
1776-427: A plan. If the debtor proposes a plan within the 120-day exclusivity period, a 180-day exclusivity period from the date of filing for chapter 11 is granted in order to allow the debtor to gain confirmation of the proposed plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. If the judge approves the reorganization plan and the creditors all agree, then
1887-586: A profit of about $ 2.5 billion. Following the sale, in 2017, Kalanick was ranked 238th on the Forbes 400 list of richest Americans, with a net worth of $ 2.6 billion. In 2018, Kalanick started a venture fund named 10100, intended to invest in e-commerce, innovation and real estate in emerging markets like China and India. That same year, Kalanick announced an investment of nearly $ 150 million in real estate redevelopment company City Storage Systems; he also announced that he would be its CEO. The company operates
1998-404: A profit. The trustee or debtor-in-possession normally rejects a contract or lease to transform damage claims arising from the nonperformance of those obligations into a prepetition claim. In some situations, rejection can also limit the damages that a contract counterparty can claim against the debtor. Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure
2109-669: A related development, British politician Andy McDonald received praise for educating a CEO on the role of trade unions. This occurred as the restaurant chain McDonald's faced scrutiny in the UK Parliament over allegations of a toxic workplace culture. Chapter 11, Title 11, United States Code Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code ) permits reorganization under
2220-418: A reorganization process for the majority of private individuals. When a business is unable to service its debt or pay its creditors , the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount
2331-491: A result of information from the file. Although many drivers and corporate employees had requested the addition of a tipping option in the app for years, Kalanick opposed it, believing it interfered with the otherwise "frictionless" payment process. Following a pair of class-action lawsuits in California and Massachusetts about the employment status of drivers, Uber was mandated to explain its position on tips, which it did via
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#17328693890332442-461: A result, Red Swoosh ran with minimal month-to-month cash flow , and by August 2001, some employees had gone months without a paycheck. In September 2001, Red Swoosh used approximately $ 110,000 of the company's payroll tax withholdings to fund day-to-day operations. There are differing accounts of what led to the decision and the fallout that ensued. In 2014, Business Insider reported that Kalanick publicly accused co-founder Michael Todd of making
2553-522: A secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by the automatic stay provisions of the Bankruptcy Code. In August 2019, the Small Business Reorganization Act of 2019 ("SBRA") added Subchapter V to Chapter 11 of
2664-464: A service, but had a strongly negative perception of Kalanick. Shortly after the survey results were first discussed at Uber in February 2017, Eric Newcomer at Bloomberg Businessweek published a video of Kalanick berating an Uber driver at the end of a ride, following a disagreement about falling driver income. Kalanick apologized for the incident to company employees in an email that was later posted to
2775-406: A short time later. Following his resignation, Kalanick retained his seat on Uber's board of directors . He continued to attempt to interfere with company operations by contacting employees and board members asking for internal company information and attempting to sway their voting regarding his replacement. The executive leadership threatened to quit en masse ; Kalanick's access to company servers
2886-551: A source of criticism following a dramatic rise in pay relative to the average worker's wage . For example, the relative pay was 20-to-1 in 1965 in the US, but had risen to 376-to-1 by 2000. The relative pay differs around the world, and, in some smaller countries, is still around 20-to-1. Observers differ as to whether the rise is due to competition for talent or due to lack of control by compensation committees. In recent years, investors have demanded more say over executive pay. Lack of diversity amongst chief executives has also been
2997-499: A source of criticism. In 2018, 5% of Fortune 500 CEOs were women. In 2023 the number rose to 10.4% of for Women CEO's of Fortune 500 companies . The reasons for this are explained or justified in various ways, and may include biological sex differences, male and female differences in Big Five personality traits and temperament, sex differences in psychology and interests, maternity and career breaks, hypergamy , phallogocentrism ,
3108-558: A successful reorganization and retain control of the business and increase oversight and ensure a quick reorganization. A Subchapter V case contrasts from a traditional Chapter 11 in several key aspects: it is earmarked only for the "small business debtor" (as defined by the Bankruptcy Code), so, only a debtor can file a plan of reorganization . The SBRA requires the U.S. Trustee appoint a "subchapter V trustee" to every Subchapter V case to supervise and control estate funds, and facilitate
3219-456: A supporter of Kalanick's, had become frustrated with his reckless corporate spending and overriding of the chief financial officer and chief legal officer . Corporate culture at Uber under Kalanick was grueling. Employees were expected to work nights and weekends regularly without additional compensation, and conference calls were often scheduled at all times of the night. Kalanick favored employees who were willing to do anything to advance in
3330-517: A teenager, Kalanick sold knives door-to-door for direct sales company Cutco . At 18, he started a test preparation company called "New Way Academy" with the father of a classmate. After graduating from Granada Hills Charter High School , Kalanick studied computer engineering and business economics at the University of California, Los Angeles (UCLA). While studying at UCLA, Kalanick was a member of Theta Xi fraternity. In 1998, he dropped out to work at
3441-522: A tool for escaping labor contracts, usually 30–35% of an airline's operating cost. Every major US airline has filed for Chapter 11 since 2002. In the space of 2 years (2002–2004) US Airways filed for bankruptcy twice leaving the AFL–CIO , pilot unions and other airline employees claiming the rules of Chapter 11 have helped turn the United States into a corporatocracy . The trustee or debtor-in-possession
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3552-402: Is charged with maximizing the value of the business, which may include maximizing the profitability , market share , revenue , or another financial metric. In the nonprofit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission, usually provided by legislation . CEOs are also frequently assigned the role of the main manager of the organization and
3663-399: Is defined primarily by § 507 of the Bankruptcy Code ( 11 U.S.C. § 507 ). As a general rule, administrative expenses (the actual, necessary expenses of preserving the bankruptcy estate, including expenses such as employee wages, and the cost of litigating the chapter 11 case) are paid first. Secured creditors —creditors who have a security interest , or collateral , in
3774-442: Is given the right, under § 365 of the Bankruptcy Code, subject to court approval, to assume or reject executory contracts and unexpired leases. The trustee or debtor-in-possession must assume or reject an executory contract in its entirety, unless some portion of it is severable. The trustee or debtor-in-possession normally assumes a contract or lease if it is needed to operate the reorganized business or if it can be assigned or sold at
3885-403: Is often highly contentious because it is both subjective and important to case outcomes. The methods of valuation used in bankruptcy have changed over time, generally tracking methods used in investment banking, Delaware corporate law, and corporate and academic finance, but with a significant time lag. Chapter 11 retains many of the features present in all, or most, bankruptcy proceedings in
3996-402: Is often used in lieu of chief executive officer. Business publicists since the days of Edward Bernays (1891–1995) and his client John D. Rockefeller (1839–1937) and even more successfully the corporate publicists for Henry Ford , promoted the concept of the " celebrity CEO". Business journalists have often adopted this approach, which assumes that the corporate achievements, especially in
4107-421: Is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession , and is subject to the oversight and jurisdiction of the court. A Chapter 11 bankruptcy will result in one of three outcomes for the debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a Chapter 11 debtor to reorganize,
4218-418: Is sometimes included as one such subordinate executive officer, but, as suggested by Anthony Johndrow, CEO of Reputation Economy Advisors, it can also be seen as "simply another way to add emphasis to the role of a modern-day CEO – where they are both the external face of, and the driving force behind, an organization culture". In the US, the term "chief executive officer" is used primarily in business, whereas
4329-438: Is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. An example of proceedings that are not necessarily stayed automatically are family law proceedings against a spouse or parent. Further, creditors may file with the court seeking relief from the automatic stay. If the business is insolvent , its debts exceed its assets and the business is unable to pay debts as they come due,
4440-427: Is tasked with implementing the goals, targets and strategic objectives as determined by the board of directors. As an executive officer of the company, the CEO reports the status of the business to the board of directors, motivates employees, and drives change within the organization. As a manager, the CEO presides over the organization's day-to-day operations. The CEO is the person who is ultimately accountable for
4551-464: Is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11. These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling
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4662-476: Is to prevent a conflict of interest and too much power being concentrated in the hands of one person. In the United States, the board of directors (elected by the shareholders ) is often equivalent to the supervisory board, while the executive board may often be known as the executive committee (the division/subsidiary heads and C-level officers that report directly to the CEO). In the United States, and in business,
4773-423: Is unusual for an investor to sue a founder directly. The court ruled in the favor of Kalanick to move the case to arbitration on August 30. In a public statement responding to the ruling, Kalanick said that "Benchmark's false allegations are wholly without merit and have unnecessarily harmed Uber and its shareholders." Kalanick initially supported former General Electric CEO Jeff Immelt as his successor. Immelt
4884-541: The Los Angeles Daily News . Donald, from a Slovak–Austrian Catholic family whose grandparents immigrated to the United States from the Austrian city of Graz , was a civil engineer for the city of Los Angeles. Kalanick has two half-sisters, one of whom is the mother of actress Allisyn Ashley Arm , and a brother who is a firefighter. In middle and high school, Kalanick was known to be competitive and driven to win. As
4995-541: The Dictionary says that the use of "CEO" as an acronym for a chief executive officer originated in Australia , with the first attestation being in 1914. The first American usage cited is from 1972. The responsibilities of an organization's CEO are set by the organization's board of directors or other authority, depending on the organization's structure. They can be far-reaching or quite limited, and are typically enshrined in
5106-716: The Motion Picture Association of America (MPAA), the Recording Industry Association of America (RIAA), and the National Music Publishers Association (NMPA) brought a $ 250 billion lawsuit against Scour, alleging copyright infringement. In September 2000, Scour filed for Chapter 11 bankruptcy to protect itself from the lawsuit. In 2001, with Michael Todd, Kalanick started Red Swoosh , another peer-to-peer file-sharing company. Kalanick called it his "revenge business" against
5217-472: The Showtime series Super Pumped (2022), Kalanick is portrayed by Joseph Gordon-Levitt . Chief executive officer CEOs find roles in various organizations, including public and private corporations , nonprofit organizations , and even some government organizations (notably state-owned enterprises ). The governor and CEO of a corporation or company typically reports to the board of directors and
5328-691: The Strategic and Policy Forum of President Donald Trump , organized by Stephen Schwarzman , a businessman with The Blackstone Group . Kalanick publicly opposed President Trump's executive order banning travel from select countries , but wrote in a news post on the Uber website that, as a member of the advisory council, he believed he would be able to directly address his concerns with the President and advocate for immigrants. After continued pressure, Kalanick announced in an email to Uber employees that he would step down from
5439-502: The United States Trustee , can request the court convert the case into a liquidation under chapter 7, or appoint a trustee to manage the debtor's business. The court will grant a motion to convert to chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under chapter 11 (perhaps in a 363 sale), in which the pre-existing management may be able to help get
5550-447: The bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy , is available to every business , whether organized as a corporation , partnership or sole proprietorship , and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, though liquidation may also occur under Chapter 11; while Chapter 13 provides
5661-443: The start-up Scour full-time. In 1998, Kalanick, along with Michael Todd and Vince Busam, dropped out of UCLA to work for Dan Rodrigues , founder of Scour Inc. , a multimedia search engine, and Scour Exchange, a peer-to-peer file sharing service. Kalanick handled sales and marketing for Scour. He has referred to himself as a co-founder of the company, but the other co-founders have disputed this. After months of growth, Scour
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#17328693890335772-471: The "JamPad" – as an informal salon for young tech enthusiasts. In 2009, Kalanick co-founded ridesharing company Uber with Canadian entrepreneur Garrett Camp , co-founder of StumbleUpon . Camp, a frequent guest at Kalanick's home, had become frustrated with taxi services in San Francisco, and had found hiring drivers with upscale black car services inconvenient and expensive. Eventually he developed
5883-455: The Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving the plan and making it binding on all parties in the case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that the reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation. In
5994-426: The Bankruptcy Code. Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of the advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs. It seeks to increase the debtor's ability to negotiate
6105-535: The CEO is also the president, is the vice president (VP). An organization may have more than one vice president, each tasked with a different area of responsibility (e.g., VP of finance, VP of human resources). Examples of subordinate executive officers who typically report to the CEO include the chief operating officer (COO), chief financial officer (CFO), chief strategy officer (CSO), chief marketing officer (CMO) and chief business officer (CBO). The public relations -focused position of chief reputation officer
6216-457: The MPAA and RIAA for the lawsuit that killed Scour. Kalanick's business model was that media companies would pay Red Swoosh to provide legitimate copies of media files like music and videos to customers, and the company developed technology to make the transfer of such large files more efficient. Kalanick had difficulty securing funding as the company was launched right after the dot-com bubble burst. As
6327-525: The UK, chief executive and chief executive officer are used in local government , where their position in law is described as the "head of paid service", and in business and in the charitable sector . As of 2013 , the use of the term director for senior charity staff is deprecated to avoid confusion with the legal duties and responsibilities associated with being a charity director or trustee, which are normally non-executive (unpaid) roles. The term managing director
6438-525: The United States. It provides additional tools for debtors as well. Most importantly, 11 U.S.C. § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business. Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on
6549-422: The arena of manufacturing, are produced by uniquely talented individuals, especially the "heroic CEO". In effect, journalists celebrate a CEO who takes distinctive strategic actions. The model is the celebrity in entertainment, sports, and politics – compare the " great man theory ". Guthey et al. argues that "...these individuals are not self-made, but rather are created by a process of widespread media exposure to
6660-477: The bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company. All creditors are entitled to be heard by the court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with bankruptcy laws. One controversy that has broken out in bankruptcy courts concerns
6771-512: The board and hand-picked its members to allow him to "do what I want". In 2016, he negotiated an option to appoint another three board members at his discretion. Journalists and the public alike criticized Kalanick regularly for setting Uber up with a " bro culture " awash in toxic masculinity , bullying , and misogyny , which in turn influenced attitudes in Silicon Valley generally. In a 2014 interview with men's magazine GQ , he joked that
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#17328693890336882-426: The board. In January 2018, Benchmark dropped its lawsuit against Kalanick to allow the deal to proceed. The share purchase valued Uber at $ 48 billion. On December 24, 2019 Kalanick announced his resignation from the board effective December 31, 2019. In the weeks leading up to this announcement, Kalanick sold off more than $ 2.5 billion of Uber stock holding, which amounted to about 90% of his shares. Following
6993-399: The business's earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay . While the automatic stay is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor
7104-617: The case of a partnership , an executive officer is a managing partner, senior partner, or administrative partner. In the case of a limited liability company , an executive officer is any member, manager, or officer. Depending on the organization, a CEO may have several subordinate executives to help run the day-to-day administration of the company, each of whom has specific functional responsibilities referred to as senior executives, executive officers or corporate officers. Subordinate executives are given different titles in different organizations, but one common category of subordinate executive, if
7215-423: The chances of a successful outcome and sufficient debtor-in-possession financing may be unavailable during an economic recession. A preplanned, pre-agreed approach between the debtor and its creditors (sometimes called a pre-packaged bankruptcy ) may facilitate the desired result. A company undergoing Chapter 11 reorganization is effectively operating under the "protection" of the court until it emerges. An example
7326-552: The company blog, stating that he felt he needed to "grow up". Later that year, Reuters reported that Kalanick had developed "a reputation as an abrasive leader". Sexual harassment and other forms of discrimination were rife at Uber corporate headquarters during Kalanick's tenure as CEO. The issues went unaddressed by the human resources department (HR), and Kalanick in particular was known to protect his favored employees from consequences for this type of behavior. Much of this behavior became public in early 2017. That February, it
7437-467: The company by the end of September that year. Kalanick accused him of trying to solicit a hiring offer for himself and other Red Swoosh employees with Sony Ventures behind Kalanick's back. Shortly after Todd's departure, Kalanick moved back into his parents' house in a bid to save money, later complaining that "it sucked", because he "wasn't getting ladies". Kalanick apparently went without a salary while at Red Swoosh for over three years. By 2002, Red Swoosh
7548-420: The company should be called "Boob-er" for all the female attention it was bringing him; the remark was frequently criticized in the press as an example of his toxic masculinity. Executives were known to expense strip club visits to corporate accounts, a practice jokingly referred to as "Tits on Travis". Surveys commissioned by Uber public relations personnel in late 2016 showed that customers appreciated Uber as
7659-399: The company to ignore the order and continue operating, but changed the company's name from UberCab to Uber to prevent it from being accused of falsely advertising itself as a taxi company. Kalanick believed that in addition to efficiency, Uber offered elegance because all drivers had fancy black cars. He did not feel that regular cars would be attractive. When Wingz, Inc. launched in 2011 with
7770-486: The company, even if it resulted in chronic infighting. He authorized the use of industrial espionage tactics against competitors and regulators, including the Greyball blacklisting program, and encouraged the development and use of rider-surveillance programs. Throughout his tenure as CEO, Kalanick had tight control over the company's board of directors , once telling Tim Cook from Apple that he had intentionally structured
7881-491: The company. In January 2022, Business Insider reported that the company had raised new funding valued at $ 15 billion. Since 2018, Kalanick has been on an advisory board for Neom , Saudi Arabia's plan to build a futuristic "mega city" in the desert. Kalanick owns a townhouse in the upper hills of San Francisco's Castro District , which was nicknamed "the Jam Pad" and had its own Twitter account. In 2019, Kalanick purchased
7992-477: The concept of a smartphone app that could hail luxury vehicles directly from the user's smartphone . He discussed the concept with Kalanick, who agreed to act as a "mega advisor" to the company, originally called UberCab. As neither Camp nor Kalanick wanted to run the company directly, Ryan Graves was brought on as chief executive officer (CEO) at launch. He held the position for ten months before being removed in favor of Kalanick. Camp and Graves each signed over
8103-448: The confirmation hearing, a disclosure statement must be approved by the bankruptcy court. Once the disclosure statement is approved, the plan proponent will solicit votes from the classes of creditors. Solicitation is the process by which creditors vote on the proposed confirmation plan. This process can be complicated if creditors fail or refuse to vote. In which case, the plan proponent might tailor his or her efforts in obtaining votes, or
8214-449: The council. At the end of May 2017, Kalanick's parents were involved in a boating accident that seriously injured his father and resulted in the death of his mother. On June 11, the final report of the independent investigation into Uber's sexual harassment issues was presented to Uber's top management. The scathing report was "hundreds of pages" long and included a dozen pages of recommendations, most prominently that Kalanick needed to take
8325-497: The creditors' rights to enforce their security reach different conclusions. Chapter 11 cases dropped by 60% from 1991 to 2003. One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law, the study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However,
8436-450: The day-to-day business and one supervisory board for control purposes (selected by the shareholders). In these countries, the CEO presides over the executive board and the chairperson presides over the supervisory board, and these two roles will always be held by different people. This ensures a distinction between management by the executive board and governance by the supervisory board. This allows for clear lines of authority. The aim
8547-481: The deal after taxes and moved to San Francisco . In San Francisco, Kalanick used the money he had made from the sale of Red Swoosh to make small investments in startups. He positioned himself as a "fixer" for startup problems such as talking to investors or hiring new staff. He primarily invested in tech startups like Expensify , Livefyre , Crowdflower , and Formspring . Unsatisfied with only being an investor, he began to treat his Castro District apartment – termed
8658-444: The debtor does file a plan within the first 120 days, the exclusivity period is extended to 180 days after the order for relief for the debtor to seek acceptance of the plan by holders of claims and interests. If the judge approves the reorganization plan and the creditors all "agree", then the plan can be confirmed. §1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to "confirming" or "approving"
8769-403: The debtor must file (and the court must confirm) a plan of reorganization. In effect, the plan is a compromise between the major stakeholders in the case, including the debtor and its creditors. Most Chapter 11 cases aim to confirm a plan, but that may not always be possible. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of
8880-433: The debtor will be able to pay most administrative and priority claims (priority claims over unsecured claims ) on the effective date. Like other forms of bankruptcy, petitions filed under chapter 11 invoke the automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes many post-petition debt collection efforts void or voidable. Under some circumstances, some creditors, or
8991-422: The debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before the next lower priority level may receive payment. Section 1110 ( 11 U.S.C. § 1110 ) generally provides
9102-562: The decision without his knowledge, while Todd stated it was a decision they made together. The article noted that "an email sent by Kalanick at the time and obtained by Business Insider appears to demonstrate his participation in the tax plan." In a 2017 article for The New York Times , Mike Isaac reported that Kalanick and Todd made the decision together, and that "friends and advisors" had warned Kalanick that using tax withholdings in this way could be considered tax fraud . In his 2019 book Super Pumped , Isaac wrote that an unnamed employee made
9213-472: The decision, for which Kalanick was blamed following the employee's departure from the company. According to this version, it was only after the fact that he was advised it could be tax fraud. In the end, a second round of funding provided enough cash to repay the Internal Revenue Service , and no one was ever prosecuted. The incident caused significant tension between the co-founders, and Todd left
9324-537: The development of a consensual plan. It also eliminates automatic appointment of an official committee of unsecured creditors and abolishes quarterly fees usually paid to the U.S. Trustee throughout the case. Most notably, Subchapter V allows the small business owner to retain their equity in the business so long as the reorganization plan does not discriminate unfairly and is fair and equitable with respect to each class of claims or interests. The reorganization and court process may take an inordinate amount of time, limiting
9435-492: The executive officers are usually the top officers of a corporation, the chief executive officer (CEO) being the best-known type. The definition varies; for instance, the California Corporate Disclosure Act defines "executive officers" as the five most highly compensated officers not also sitting on the board of directors. In the case of a sole proprietorship , an executive officer is the sole proprietor. In
9546-410: The exigencies of the circumstances. Relief from the automatic stay is generally sought by motion and, if opposed, is treated as a contested matter under Bankruptcy Rule 9014. A party seeking relief from the automatic stay must also pay the filing fee required by 28 U.S.C.A. § 1930(b). In the new millennium, airlines have fallen under intense scrutiny for what many see as abusing Chapter 11 bankruptcy as
9657-562: The existence of old boy networks , tradition, and the lack of female role models in that regard. Some countries have passed laws mandating boardroom gender quotas. In 2023 Rockefeller Foundation awarded a grant to Korn Ferry to research strategies and then action a plan to help more women to become CEO's. There are contentious claims that a significant number of CEO's have psychopathic tendencies, often characterized by power-seeking behavior and dominance. These individuals can often conceal their ruthlessness and antisocial behavior behind
9768-664: The first ridesharing website in the world using regular drivers, he felt that Wingz was illegal and contacted authorities to stop regular drivers from giving rides. In February 2011, Kalanick met with Bill Gurley , an investor from venture capital firm Benchmark , and secured an $ 11 million investment for 20 percent of Uber (then valued at $ 50 million) for its Series A round of funding. The company embarked on its Series B round in late 2011, raising an additional $ 32 million. Kalanick's experiences with investors at Scour and Red Swoosh had made him wary of investors who might interfere with his control of Uber, so he ensured that
9879-740: The highest-ranking officer in the C-suite . The term "chief executive officer" is attested as early as 1782, when an ordinance of the Congress of the Confederation of the United States of America used the term to refer to governors and other leaders of the executive branches of each of the Thirteen Colonies . In draft additions to the Oxford English Dictionary published online in 2011,
9990-405: The plan and making it binding on all parties in the case. Most importantly, the bankruptcy court must find the plan (a) complies with applicable law, and (b) has been proposed in good faith. Furthermore, the court must determine whether the plan is "feasible, " in other words, the court must safeguard that confirming the plan will not yield to liquidation down the road. The plan must ensure that
10101-412: The plan can be confirmed. If at least one class of creditors objects and votes against the plan, it may nonetheless be confirmed if the requirements of cramdown are met. In order to be confirmed over the creditors' objection, the plan must not discriminate against that class of creditors, and the plan must be found fair and equitable to that class. Upon confirmation, the plan becomes binding and identifies
10212-419: The plan is a compromise between the major stakeholders in the case, including, but not limited to the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible. Section 1121(b) of the Bankruptcy Code provides for an exclusivity period in which only the debtor may file a plan of reorganization. This period lasts 120 days after the date of the order for relief, and if
10323-412: The plan itself. The plan may be modified before confirmation, so long as the modified plan meets all the requirements of Chapter 11. A chapter 11 case typically results in one of three outcomes: a reorganization; a conversion into chapter 7 liquidation, or it is dismissed. In order for a chapter 11 debtor to reorganize, they must file (and the court must confirm) a plan of reorganization. Simply put,
10434-449: The platform. That same year, Kalanick obtained a $ 250 million investment from Google Ventures , with a valuation of $ 3.5 billion. Kalanick also made a point of undermining potential investments into competitor Lyft , poaching them for Uber. By 2014, Kalanick's reputation was beginning to suffer as a result of his ruthless attitude towards competitors, regulators, customers, employees, and Uber's drivers. By this time, Gurley, once
10545-409: The point that their actions, personalities, and even private lives function symbolically to represent significant dynamics and tensions prevalent in the contemporary business atmosphere". Journalism thereby exaggerates the importance of the CEO and tends to neglect harder-to-describe broader corporate factors. There is little attention to the intricately organized technical bureaucracy that actually does
10656-442: The proper amount of disclosure that the court and other parties are entitled to receive from the members of the creditor's committees that play a large role in many proceedings. Chapter 11 usually results in reorganization of the debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on
10767-545: The sale, in 2017, Kalanick was ranked 238th on the Forbes 400 list of richest Americans, with a net worth of $ 2.6 billion. On March 7, 2018, Kalanick announced via his Twitter account that he would start a venture fund, 10100 (pronounced 'ten-one-hundred'), focused on job growth in emerging markets like China and India. Shortly after the announcement of his venture fund, Kalanick announced that his fund had invested $ 150 million in City Storage Systems (CSS),
10878-402: The size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. The debtor in possession typically has the first opportunity to propose a plan during the period of exclusivity. This period allows the debtor 120 days from the date of filing for chapter 11 to propose a plan of reorganization before any other party in interest may propose
10989-409: The term "executive director" is used primarily in the not-for-profit sector. These terms are generally mutually exclusive and refer to distinct legal duties and responsibilities. The CEO is the highest-ranking executive in a company, making corporate decisions, managing operations, allocating resources, and serving as the main point of communication between the board of directors and the company. In
11100-472: The terms for these and future investments strongly favored himself and Uber. He strictly limited the amount of financial information investors could access, and the shares for new investors had a tenth of the voting power of the shares held by Kalanick, Camp, and Graves. In April 2013, after Wingz, Inc. fought to become legal and obtained the first legal ridesharing license in the world, Uber copied this model and added regular drivers instead of only black cars to
11211-460: The treatment of debts and operations of the business for the duration of the plan. If a plan cannot be confirmed, the court may either convert the case to a liquidation under chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. In order to proceed to
11322-457: The work. Hubris sets in when the CEO internalizes the celebrity and becomes excessively self-confident in making complex decisions. There may be an emphasis on the sort of decisions that attract the celebrity journalists . Research published in 2009 by Ulrike Malmendier and Geoffrey Tate indicates that "firms with award-winning CEOs subsequently underperform, in terms both of stock and of operating performance". Executive compensation has been
11433-790: The workplace. This perspective is explored in the book Snakes in Suits , co-authored by Robert D. Hare . However, Scott Lilienfeld has argued that the attention given to psychopathy in the workplace by both the media and scholars has far exceeded the available scientific evidence. Emilia Bunea, writing in Psychology Today , has linked psychopathic traits in managers to workplace bullying , employee dissatisfaction, and turnover intentions. Despite this, Bunea cautions that excessive worry about supposed psychopathic managers could discourage individuals from pursuing careers in corporations and deter employees from addressing issues with difficult bosses. In
11544-458: Was CEO of Uber from 2010 to 2017. He resigned from Uber in 2017, after growing pressure resulting from public reports of the company's unethical corporate culture, including allegations that he ignored reports of sexual harassment at the company. Kalanick retained his seat on the board of directors until he resigned the seat on December 31, 2019. In the weeks leading up to the resignation, Kalanick sold off approximately 90% of his shares in Uber, for
11655-431: Was damaging to her psyche, as she had dealt with eating disorders for years. Holzwarth did, however, praise Kalanick for helping her recover from her eating disorders. Kalanick has been described as a passionate libertarian and a fan of author Ayn Rand . However, Kalanick supported Obamacare because it allows Uber drivers, as independent contractors , to maintain health insurance as they transition between jobs. In
11766-426: Was down to only two employees: Kalanick and former Scour engineer Evan Tsang. The company continued to have difficulty securing funding, surviving via a series of last-minute deals with various investors. In early 2005, Todd helped recruit Tsang to Google , resulting in public embarrassment for the already-struggling Red Swoosh and the loss of a potentially lucrative deal with AOL . After getting to know Kalanick during
11877-436: Was open to allowing Kalanick to retain some role in Uber's operations, while the other major candidate, Meg Whitman of Hewlett Packard Enterprise , intended to shut Kalanick out of any operational role. However, Kalanick soured on Immelt after Immelt's presentation went badly. Immelt pulled out of the running after one director privately told him he had no chance at getting the job. Kalanick unexpectedly threw his support behind
11988-493: Was reported that Kalanick had full knowledge of sexual harassment allegations at Uber and did nothing. After these reports emerged, Kalanick announced that Uber would "conduct an urgent investigation into these allegations". In the same week, following a report from Recode , Kalanick asked his newly-hired direct report , SVP of Engineering Amit Singhal , to resign; Singhal had failed to disclose that he had resigned from Google following sexual harassment claims. In March 2017, it
12099-542: Was reported that in 2014, Kalanick had been part of a group of Uber executives who visited a karaoke bar in Seoul that featured escorts . A female employee who was present made a complaint to HR, but little came of it. That summer, it emerged that Kalanick and other top Uber executives had accessed the private medical files of a woman who alleged she was raped by an Uber driver in India; Kalanick had made comments doubting her account as
12210-401: Was strapped for cash and sought funding from venture capitalist investors Ronald Burkle and Michael Ovitz . Negotiations were contentious and Ovitz eventually sued Scour for breach of contract. Scour was forced to accept unfavorable terms for the investment, and Ovitz acquired majority control over the company. The situation would sour Kalanick's view of investor-founder relations. In 2000,
12321-471: Was stripped. On August 10, 2017, Axios reported that Benchmark was suing Kalanick for "fraud, breach of contract and breach of fiduciary duty", in an attempt to remove Kalanick's residual right to name two further board members. Benchmark argued the agreement was invalid due to withholding of material information prior to the vote to allow him to do so. The lawsuit was controversial in Silicon Valley; it
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