Uber's board is about to make some hard decisions.
Uber will tell employees about the recommendations on Tuesday, said the representative, who declined to be identified.
Some of the recommendations in Holder's firm's report would force greater controls on spending, human resources and other areas where executives led by Kalanick have had a surprising amount of autonomy for a company with more than 12,000 employees, one person familiar with the matter said. Michael may be best known outside the company for suggesting in 2014 that the company could hire researchers and reporters to target journalists who were critical of the company.
Uber said that the report considered 215 cases encompassing sexual harassment, discrimination, unprofessional behaviour, bullying and other employee complaints. An Uber board member iterated that the karaoke-escort bar incident was one of focal points of the report and that it made a strong recommendation to relieve Kalanick and Michael from their positions.
The chief executive of Uber could be forced to take a leave of absence after the taxi-hailing app said it would adopt recommendations from a report instigated by sexual harassment claims. With several scandals to deal with, public relation blunders and the sudden tragic boating accident that resulted in his mother's death and hospitalization of his father earlier in May, Mr. Kalanick is reportedly considering a temporarily leave of absence. "Uber has a long way to go to achieve all that it can and I am looking forward to seeing what you accomplish in the years ahead".
It is unclear, though assumed, if Michael's potential resignation would be related to a report prepared by former Attorney General Eric Holder regarding Uber's workplace culture. Seven of Uber's nine board members hold so-called super-voting shares, allowing them to have a stronger say in the board room.
And in February, in an exchange captured on camera, an Uber driver giving Kalanick a ride complained about the company's pricing model, to which Kalanick responded: "Some people don't like to take responsibility for their own s***".
Uber Chief Executive Travis Kalanick speaks to students at the Indian Institute of Technology (IIT) campus in Mumbai, India, in January 2016.
Michael disclosed this move in an email to employees today and said that David Richter, vice president of strategic initiatives, will be taking over his place. Earlier this year, Kalanick acknowledged that his style of management had to change, with Kalanick admitting that he needed to "fundamentally change and grow up".