It's clear from former Attorney General Eric Holder's recommendations on how to fix Uber's dysfunctional management that the male-dominated company grew huge without even the most basic procedures to prevent sexual harassment, bullying and other bad behaviour.
The 13-page document from Holder's firm Covington & Burling LLP released on Tuesday exposes a startup-turned-goliath that permitted misconduct, had few policies to protect employees and ran with little board supervision.
The recommendations , adopted unanimously by Uber's board, show clearly that the next version of Uber, called 2.0 by CEO co-founder Travis Kalaninck, will have to be much different from the free-wheeling company that flouted regulations and disrupted the taxi business to become the world's largest ride-hailing company.
Kalanick told employees Tuesday that he'd be taking an indefinite leave of absence.
And in another strange twist, board member and hedge fund partner David Bonderman resigned on Tuesday night after making what he called an inappropriate remark about women at a meeting to explain Holder's recommendations to employees.
Bonderman remarked that if a woman was added to the board that there likely would be more talking, according to a recording obtained by Yahoo.
By evening, Bonderman resigned and put out a statement saying the comment was careless and inappropriate.
"I do not want my comments to create distraction as Uber works to build a culture of which we can be proud," the statement said.
The Holder investigation started after former engineer Susan Fowler posted a blog in February detailing harassment during the year she spent at Uber, writing that she was propositioned by her manager on her first day with an engineering team. She reported him to human resources, but was told he would get a lecture and no further punishment because he was a "high performer," she wrote.
After interviewing 200 witnesses, Holder had to make such basic recommendations as setting clear policies to protect workers from harassment, and that the human resources department get a better handle on keeping records and tracking employee complaints. It even suggests such simple procedures as using performance reviews to hold leaders accountable and requiring all employees to turn in receipts so the company can make sure expenses match its values.
The recommendations "definitely paint a picture of a company that was out of control and pretty chaotic," says Elizabeth Ames, a senior vice president at the Anita Borg Institute, a nonprofit aimed at advancing women in the technology business.
Holder also called for trimming Kalanick's job duties, shifting day-to-day functions to a yet-to-be-hired chief operating officer.
Kalanick wrote that he needs time off to grieve for his mother, who died in a boating accident last month. He also said he's responsible for the company's situation and needs to become a better leader - echoing comments the 40-year-old CEO made earlier this year after a heated argument with an Uber driver over pay was captured on video.
