Uber finds new CEO in form of Expedia chief Dara Khosrowshahi

Audrey Hill
August 30, 2017

He has previously vowed to "guide Uber into its next phase of growth and ensure its continued success".

"Travis is a visionary who built a $69 billion company", Tusk said.

Several observers said that Khosrowshahi, coming from a more innovative company culture, seemed a more apt choice than either Immelt, 61, or the other leading candidate, Hewlett Packard Enterprise CEO Meg Whitman, also 61. Khosrowshahi has shown no shyness in buying new divisions and spinning out old ones, something that may serve him well at Uber, which has divisions including self-driving cars and food delivery outside of its core ridesharing business.

As Uber's new leader, he will walk into a situation that would test even the most seasoned CEO: A $70 billion company fending off chaos on all sides. Expedia led an $11 million round in the small San Francisco company, which has spread to 30 markets.

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Khosrowshahi has 19 years of leadership at Expedia and IAC, and has had to deal with acquisitions and challenges, said Morningstar senior analyst Dan Wasiolek in an interview. However, they could not agree on the terms in which she would take over, such as less involvement for ousted CEO and founder Travis Kalanick and more board control, Recode reports. That person also didn't want to be identified because board discussions are supposed to be private.

Dara Khosrowshahi has been CEO of Expedia since 2005 and a member of its board since completion of Expedia's spin-off from IAC/InterActiveCorp in August 2015.

Khosrowshahi was born in Tehran, Iran, around the time of the Iranian Revolution.

Khosrowshahi stands to make as much as $127 million from unvested Expedia stock options at Monday's share price, according to company regulatory filings, a factor which no doubt featured in discussions over his compensation at Uber. That's because Khosrowshahi is now sitting on about $184 million in unvested (EXPE) stock options as of Monday's close, according to FactSet, potential earnings he would give up if he left the online-travel company. However, his handling of the situation amidst protest against Donald Trump's diktat to ban refugees from seven Muslim-majority countries was seen as the final straw that did him in. "The President's order represents the worst of his proclivity toward rash action versus thoughtfulness", Khosrowshahi wrote in an email to some Expedia employees in January, according to The Seattle Times.

Other reports by MaliBehiribAe

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