DanaKhosrowshahi, an Iranian refugee, has been open in his disdain for President Donald Trump
Dara Khosrowshahi is the CEO of Expedia, Inc., at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Friday, July 13, 2012. (AP Photo/Paul Sakuma), photo: AP/Paul Sakuma
28 of August 2017 17:44:57
DETROIT – For a surprise choice, Expedia CEO Dara Khosrowshahi appears to check the boxes needed to tackle the massive job of leading Uber from a rapidly growing but dysfunctional money-loser to a company that can turn a consistent profit.Like Uber, Expedia is a global juggernaut that uses an internet platform to process millions of transactions every year. Expedia went through a big growth phase just like Uber, and has mastered making money on travel booking transactions, something that's only an aspiration for Uber.Khosrowshahi also has experience leading a public company, which Uber wants to become, and he has handled vocal investors and strong-willed board members, which Uber has."The businesses he was in are all about wringing efficiency out of underutilized assets and using a network to do it," said Gartner analyst Michael Ramsey. "He's really in the same business."Uber's fractious eight-member board voted Sunday to offer the job to Khosrowshahi, 48, who has spent most of his career at Expedia or what was once its parent company, IAC/InterActiveCorp. Expedia's board chairman confirmed the offer in a note to employees, but as of late Monday there was no announcement from Uber, where Khosrowshahi reportedly was meeting with employees.At Uber, Khosrowshahi will face a multitude of problems that led to the ouster of contentious CEO and co-founder Travis Kalanick. Board members are engaged in a very public fight, one that has spilled into the courts and influenced the CEO pick. An investigation by an outside law firm found rampant sexual harassment and bullying and there have been allegations of theft and deceit.To right the company, Khosrowshahi must calm employees, showing them he's got a specific plan to change culture and make money, Ramsey said.He has the credentials to do that, RBC Capital Markets analyst Mark Mahaney wrote Monday in a note to investors. "Expedia's loss is Uber's gain," he wrote.Khosrowshahi was a "major factor" in IAC's success during the past 12 years, Mahaney wrote, adding that Expedia's share price has risen by a factor of eight and its bookings went from about $16 billion in 2005 to $72 billion last year.
Khosrowshahi would have to surrender most of a lucrative compensation package awarded in March 2015 when he signed a contract to remain Expedia CEO through September 2020. The deal included stock options valued at $90.8 million at the time they were awarded.Companies that lure away top executives from their current jobs typically have to make up for the money that they are surrendering.Khosrowshahi, an Iranian refugee, has been open in his disdain for President Donald Trump, particularly his travel bans on people from several predominantly Muslim countries. "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.In a February conference call with analysts, Khosrowshahi ended a discussion of Expedia's quarterly results with an ominous remark: "Hopefully we will all be alive to see the end of next year," he said.Uber is now being run by a 14-person group of managers and is without multiple top executive positions that would be filled by Khosrowshahi.
I keep waiting for the moment when our Prez will rise to the expectations of his office and he fails, repeatedly. https://t.co/WlxTkRfC71— dara khosrowshahi (@dkhos) 16 de agosto de 2017
TOM KRISHERMICHAEL LIEDTKE