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Discussion » Questions » Business » Should investors be allowed to force a company founder to step down?
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Should investors be allowed to force a company founder to step down?

That's what just happened at Uber. The founder and CEO was told he had to step down from his CEO position. He actually still owns the majority of the company, but decided to honor the wishes of the investors. While I understand that there have been some bad things happening there, I think what the investors did is a load of crap.

Posted - June 22, 2017
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Responses


  • 5354
    Moot question. They did not force him to step down. They asked him to and he did.
      June 22, 2017 1:05 AM MDT
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  • 7939
    The letter hasn't been leaked yet, but I hope to see it at some point in time.

    They may have "asked," but it wasn't really asking. He was expected to or there would have been consequences. No doubt, they would have made his life miserable and possibly crushed Uber in the process. He didn't really have a reasonable choice once the request was made. I'm sure we'll hear more details as time goes on.

    In any case, do you have an opinion on the "request?"
      June 22, 2017 1:14 AM MDT
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  • 5354
    majority stockholder

    As the majority stockholder he could just tell them to go bark at the moon. He chose not to.

    I have know several fine people, who would suck at being CEO of a company, and I have also known a moron who then inherited his CEO position, he really sucked at it. It took the stockholders 15 Years to legally get rid of him, the company have not really recovered yet. This post was edited by JakobA the unAmerican. at June 22, 2017 2:03 AM MDT
      June 22, 2017 1:24 AM MDT
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  • 7939
    You are 100% right.
    So, to clarify, you see no problem with the investors requesting that he step down?
      June 22, 2017 2:04 AM MDT
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  • 5354
    Not in the case of the moron I knew, I do not have a clue how similar or different he is from the CEO involved here. Offhand I would say your example CEO showed better sense by resigning.
      June 22, 2017 2:11 AM MDT
    1

  • 19937
    I think if the company's brand will be negatively impacted by decisions made or not made by the major stockholder, they should ask him to step down.  In Uber's case, he is still a Board member.  A company is beholden to its investors and Uber has come under some very negative news reports lately. 
      June 22, 2017 10:12 AM MDT
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  • 22891
    i dont think so
      June 22, 2017 3:48 PM MDT
    0