But if he is to take over from the company's embattled and former CEO, Travis Kalanick, there are five key leadership actions he might want to consider. Imagine ifKhosrowshahi were to publicly announce that his total pay package (inclusive of any restricted stock units or stock options) was going to be within the 25-1 ratio that Drucker recommended. [3][4] He is the youngest of the three children of Lili and Asghar (Gary) Khosrowshahi. In summary, on top of being a successful Iranian immigrant, with these five leadership actions Khosrowshahi could be redefining what it means to be a CEO while redefining the culture and organizational purpose of Uber itself. He spoke out in favor of marriage equality. Dara Khosrowshahi: Changing the Company Culture at Uber By: Joseph C. Santora Publisher: SAGE Publications: SAGE Business Cases Originals Publication year: 2020 Online pub date: January 15, 2020 Discipline: Organizational Culture, Change Leadership, Leadership Styles Contains: Teaching Notes DOI: https://dx. Dont worry about your job. And so we constantly go against and when things are good we actually push down. And one of the things that that Barry Diller, who is our chairman, always says is you want to have a company that can have a balance sheet, kind of this lock, stock, and barrel strong balance sheet that allows you to lean forward during periods of uncertainty because when everyone else is pulling back, if you lean forward, thats when you gain share. Its a big cake and I want it to be really tasty.. FASTER! [4] The couple has twin sons, Hayes Epic and Hugo Gubrit. ClearlyKhosrowshahi's ratio at Expedia was significantly more than Drucker's recommendation. However, new CEO Dara Khosrowshahi is known for his visionary leadership style. I think if you define fairness by fair market value, then C.E.O.s are paid fairly, he said. But, destiny had set other plans for the young man. With Khosrowshahi in charge of Expedia, Inc., the company has grown massively. There have been several news stories alleging that Uber's technology lags behind competitors'. Mr Harford's leadership style drew mixed. HP CEO Meg Whitman and former General Electric CEO Jeff Immelt were shortlisted as potential leaders of the new Uber leadership. While it may not be possible to achieve it on day one of his tenure,Khosrowshahi can announce to the world that in due time, Uber's leadership team will be equally balanced by men and women. Were going to be over $50 billion now. I do think that we have to build better safeguards for people who cant make our system quite work the way that they want to work, or were willing to work with regulators to have certain safeguards like minimum earnings.. We do the right . Continue reading for his edited remarks and watch the GeekWire Summit fireside chat and listen to the podcast below. Uber's business model relies on a cadre of drivers right across the globe. And now the question is, what does the responsibility look like? He always emphasizes accountability and transparency. An avid critic of anti-immigrant policies, he is an inspiration for immigrants who wish to make it big on foreign land. [8][4], In 1987, he graduated from the Hackley School, a private university-preparatory school in Tarrytown. More than 20 were fired for unethical behavior after two internal investigations, one of which was led by former US Attorney General Eric Holder. Your billing info has been updated. "Uber is fortunate to have him at the helm. But I think our house is going to get bigger.. CEO, Author, Keynote Speaker, Leadership Strategist, Poet, Seattle, Washington, U.S., on Tuesday, Oct. 4, 2016. He criticized President Donald Trump's travel ban restricting immigration from several majority Muslim countries. Things are fine. I love Dungeons & Dragons, but I dont know that character. Dara Khosrowshahi lives in Capitol Hill with his wife, Sydney, and 3-year-old twin sons Hayes Epic and Hugo Gubrit Khosrowshahi. He said he didnt have enough time to be depressed or to feel sorry. As he was frantically trying to figure out if the company already losing billions could survive losing, in some places, 85 percent of its rides business, he discovered a glimmer moving fast: Uber Eats, an arm of the business he had been pouring money into for the previous two years, despite many investors being unhappy about it. Uber's co-founder used a "burn the village" approach (as he called it) that built the startup into the behemoth it is today -- an international ride-hailing service in 73 countries with 18,000 employees that's valued by investors at $72 billion. Whether it's Waymo, whether it's more governance, he allowed the company to then go back to business. The system, the way its designed with these compensation consultants, creates a significantly inflationary environment. CNET Magazine: Check out a sampling of the stories you'll find in CNET's newsstand edition. Silicon Valley investor Ali Rowghani was born in Iran. When people wonder, Well, are capital owners advantaged over labor? it aint called laborism., But he mused that sometimes the system works too well: I think capitalism has its claws in our democratic societies in ways that has allowed it to overly optimize for its benefit.. Khosrowshahi's leadership style stands in stark contrast to that of his predecessor, Travis Kalanick. Uber insiders say that may be just what the ride-hailing service needs. But when things are tough you know as long as you believe in your team and you believe in your strategy thats when you go against and say, you know what? This made him the highest-paid executive at that time. I think Uber is icing on the cake. Rowghani is a partner at Y Combinator, the startup incubator that helped launch Airbnb, Dropbox, Instacart, and DoorDash, according to the . Some famous assets of Expedia are trivago, hotels.com, and hotwire.com. [22], In November 2019, Khosrowshahi caused controversy in an interview with Axios on HBO, when he compared the assassination of Jamal Khashoggi to the death of Elaine Herzberg by an Uber self-driving car in 2018. [8] His family first fled to southern France. But he has a chance to potentially do something unique. Dara Khosrowshahi Chief Executive Officer , Uber. They include "UberHue," which promotes black diversity, "Women of Uber," "Los Ubers" for Latino diversity and "UberPride" for LGBTQ inclusion. Dara has been one of the most favored executives in recent times. I dont know what Travis was doing, Mr. Khosrowshahi said, in his deep, even voice. Uber plans on letting people pay for their rides with Bitcoin. Initially, Expedia was a division of Microsoft but branched out in 1996. Not only would his leadership team have gender parity, he would be signaling to the world that the manner in which he was going to be compensated was going to be fair. Rather, he can simply make mention of past mistakes, allude to how the company can learn from those mistakes, and (perhaps) commit to being more open and transparent going forward. He was then the CFO of IAC, the company that acquired USA Networks. That has allowed me to be comfortable with taking risks and taking decisions without worrying about things too much. Yes, he said, but he would want them to eventually have a full-time job, work in a technical field. [10][11], In 1991, Khosrowshahi joined Allen & Company, an investment bank, as an analyst. Dara Khosrowshahi net worth is $250 million as of 2021 with a base salary is $45million, Dara is one of the highest-paid CEOs in the world. Since he has become CEO of Expedia, Inc., it has become the owner of many smaller travel websites and grown to be the biggest online travel company, which also expresses his power leadership style. Does he pay attention to politics in Iran, with that country still in the clutches of zealots? After he got his office badge, he tweeted out this photo and said, "I checked it and it works!". Hes not growing a Neanderthal beard, living off salt juice or summering in outer space, but rather bucolic Whidbey Island, a brief ferry ride from Seattle. Its designed to optimize for long-term growth of capital. Opinions expressed by Forbes Contributors are their own. Success! His dad had to return to Iran to look after the crumbling family venture, and was stranded in the war-torn country for six years. Having served as the CEO of Expedia and as the current CEO of Uber, Dara Khosrowshahi presents a lot on the plate when it comes to experience and managing top brands. In March, one of Uber's self-driving vehicleskilled a pedestrian in Arizona. It demonstrates humility. Dara Khosrowshahi, chief executive officer of Expedia Inc., listens during the GeekWire Summit in [+] Seattle, Washington, U.S., on Tuesday, Oct. 4, 2016. Travel isnt going to end. Uber CEO Dara Khosrowshahi has kept an eye on Uber's bottom line as it pursues profitability. I think there are real issues that are being raised there. While he doesnt blame other chief executives for following the law and trying to save money, he calls the tax system a monster., There are constantly these lawyers knocking on my door to build these crazy trusts and all that, he said. And he's weighed in on keeping Deferred Action for Childhood Arrivals (DACA) in the US. (Kalanick famously dragged his feet on hiring a COO, because he reportedly didn't want to share duties in running the company.). "Khosrowshahi, recruited from travel site Expedia, started his turnaround at Uber by talking to people. The only asset we have is people. Kalanick didn't respond to a request for comment.Through the first half of 2017, unsurprisingly, Uber employees exited the company in droves. At Expedia you can work hard, while knowing that the organization is highly supportive of your personal time. Im hoping that that connection can come back again.. Weve got to fight it and weve got to fight it actively., On managing employees and creating company culture:Employee growth has been faster than we ever imagined and were always catching up to our real estate footprint. Were going to push. For every issue that an Uber driver is allowed to fester on or complain about, there is a customer who might be at the receiving end. He had just gotten divorced, she said. Notwithstanding the public apology,Khosrowshahi can commit to doing what he did at Expedia. When at Expedia, the board was so delighted with Daras performance that they decided to award him a 91 million USD stock grant along with 4 million USD salary in 2015. ), Tony West, the chief legal officer of Uber, said that Mr. Khosrowshahi is willing to take on legal risk to fix the Uber workplace. Photographer: David Ryder/Bloomberg, The Memo: Plant-Based Laptops, BMWs Hybrid SUV & The Worlds Best Beach, 15 Ways To Build An Organizational Culture That Promotes True Gender Equality, 15 Ways To Get Comfortable With Not Always Having The Answer As A Leader, Pitching Your Startup In A Remote-First World, How Digital Marketing Can Be A Game Changer For Healthcare Providers, How Loyalty Programs Can Help Brands During A Recession, How To Surround Yourself With The Right People And Find Business Profitability. (The company has an arrangement with Arizona State University online to cover tuition for drivers. "And unlike Kalanick, Khosrowshahi disclosed that hackers had grabbed data from 57 million drivers and riders in October 2016, and that Uber paid the hackers $100,000 to delete the information. I still remember going to our board of directors and I said, I need a couple of hundred million dollars and I dont know what the return is but I think its a good thing to do. That was not a fun meeting. Another leadership style I believe Khosrowshahi possesses is the social style. ', On diversity and global ambitions:Its really important for us to be global in nature and to be open to diverse kinds of backgrounds and cultures. The two men have a long professional history, having worked together at Expedia when Mr Khosrowshahi was chief executive of the travel company. "A lot of us probably thought about leaving at some point," says Wayne Ting, who's worked at Uber for four years and is now Khosrowshahi's chief of staff. A seasoned executive with a background in both engineering and finance, Dara oversaw a number of acquisitions that bolstered Expedias offerings and aggressively invested in mobile, which now accounts for more than half of Expedias traffic. Khosrowshahi said his priorities were to meet with the leadership team and fill the many management holes. Dara Khosrowshahi is the former CEO of Expedia who took over Uber as CEO in 2017. When Chloe broke the news last year that she was, as she dryly put it, an Iranian lesbian, he gave her a fist bump and told her, Its the best time in the world to be gay.. Period', Do Not Sell or Share My Personal Information. What did he learn from the fallout after he downplayed the Khashoggi execution by Saudi leaders, who are major shareholders in Uber, as a serious mistake? Dara Khosrowshahi Chief Executive Officer. Uber's ability to make money is also an issue. You need to up your eccentricity, she said teasingly. Former Uber CEO Travis Kalanick exits federal court after taking the stand during the Waymo v. Uber trial. It is to build the best company.. I think, just like Uber, some of them grew up too fast and some of them didnt take responsibility for their power and I think now theyre being called to reckon, and I think itll ultimately result in a better, more balanced society going forward, he said. Dara grew up in Tarrytown, New York, and received his bachelors degree in engineering from Brown University. Expedia isreveredfor itscorporateculture. Dara Khosrowshahi is the CEO of Uber, where he manages the company's fast-growing business in 63 countries around the world and leads a global team of more than 22,000 employees. Its a universal law. Isnt this fundamentally at odds with treating workers humanely? However, when Immelt flubbed his presentation, Immelt's initial supporters threw their backing to Khosrowshahi. He allowed the company to then go back to business. He had to lay off 25 percent of his work force. You've successfully subscribed to StartupTalky. They moved to an uncles mansion in Irvington, N.Y., for a couple of months before getting a condo in Tarrytown. His "fair" management style earned him a 94 percent approval rating on jobs site Glassdoor. That includes blowback from "some of Mr. Kalanick's behavior that continues to plague the company," Harteveldt says, including tension with regulators, drivers and passengers around the world. A few weeks ago, Mr. Khosrowshahi rode a bike, delivering for Uber Eats in San Francisco for two days. My dads advice was, If a company thats a verb offers you a job, say yes, he recalled. People are still going to travel. I can completely imagine that hurting, because hed built the company. dara khosrowshahi leadership stylecrawford dehydrator parts "But with it came a lot of fallout.". And thats certainly the experience that we had in 2008/2009., On leadership:One of the early lessons that I learned in leadership is that its the leaders job to always go against the flow. Mr. Diller said his protg has had a miserable year or two, slammed by Covid, but that Dara is a great executive. When she was little, her father a fan of Joseph Campbell, Greek myths, sci-fi and George R.R. Uber CEO Dara Khosrowshahi addresses the audience during the keynote at the start an Uber products launch in San Francisco, California on September 26, 2019. Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. Philip Pacheco | Afp | Getty Images. Ola Success Story - Funding, Revenue, and more, Company Profile is an initiative by StartupTalky to publish verified informationon different startups and organizations. I wanted it to last, because it was my second marriage and Im madly in love with Syd. Their brown shingled house has the feel of a fairy tale cottage, nestled in an enchanted-looking woods. He has two kids from his first marriage, a 12-year-old son named . He is putting it on the table for all to see. ", Uber's staff says Khosrowshahi incorporates that same empathy into his leadership style. He said the company is leaning in and investing super-aggressively to bringing drivers back. Dara Khosrowshahi ( Persian: , Persian pronunciation: [d' xoso'hi]; born May 28, 1969) is an Iranian-American businessman and the chief executive officer of Uber. Uber andKhosrowshahi possess a unique opportunity to steal a page from Canada's photogenic prime minister. Dara Khosrowshahi knew he was going to have to clean up a spectacular mess when he became CEO of Uber last August. How do today's most influential C-suite . Under his leadership, Expedia has become the largest travel agency in the United States. Has that dream dimmed? My hope is, it doesnt destroy what we built. It is a little hard to determine, but Dara definitely shows certain attributes of these two styles. Taking on one of the worst cleanup jobs in the history of American capitalism, at one of the most loathed companies, Mr. Khosrowshahi was like a dad who had to mop up after the frat party, put all the Solo cups away and get the vomit off the marble floor. Met with Uber CEO Dara Khosrowshahi. On keeping a company innovative:The key is for us to organize in different units that are separate, that do their own thing and can remain entrepreneurial. Its important for us commercially because we want to expand outside the U.S. About two thirds of our businesses is in the U.S., one third of our businesses are international. Uber was founded in 2009 with its headquarters in San Francisco, California, United States. "He didn't come in guns blazing," says Jessica Bryndza, Uber's global director of people experiences and employer brand. He shared his perspective with GeekWire during the 2016 GeekWire Summit and a podcast recorded at Expedias Bellevue, Wash. headquarters on the companys 20th birthday last year. The list of issues at Uber is long and at times rather incredulous. And there are certain times where you go for it.. Martin would concoct childrens stories set in faraway kingdoms with magical wishing flowers and golden owls that could stop time. At his island retreat, where it is not possble to hail a ride from his company. Disruption, once the mantra of Silicon Valley, has now become a dirty word. Khosrowshahi earned an engineering degree from Brown University in 1991, and then worked as an analyst at the investment bank Allen & Company before joining Barry Diller's USA Networks where he eventually became president. They are part-time contractors. One of Whitman's supporters switched his vote to Khosrowshahi, breaking the deadlock and making him Uber's second full-time CEO. I was nervous at first, he said, adding that some of it was fun and some of it was rough. My dads a lizard person, he said. She has his name tattooed in Farsi on her wrist, and he has her name tattooed in Hebrew on the back of his neck. Period.". org/10.4135/9781529706642 "Uber choose Dara Khosrowshahi as its CEO", "BRIEF-New York Times says Dara Khosrowshahi to resign from co board in light of his new role as Uber CEO", "Evolution of a dealmaker: Expedia CEO Dara Khosrowshahi is PSBJ's Executive of the Year", "Expedia Chief Dara Khosrowshahi Will Be Uber's Next CEO. Mr. Kalanick on the floor of the New York Stock Exchange during Ubers IPO. He was also beloved by Expedias employees and named one of the Highest Rated CEOs on Glassdoor. Drivers outside Ubers headquarters urging voters to rejectProposition 22. Employees were expected to personify these values, which called for things like toe-stepping, principled confrontation and "always be hustlin'. in electrical and electronics engineering from Brown University, where he was a member of the social fraternity Sigma Chi. The toxic Travis culture is gone but no one seems sure of what the Dara culture is. Khosrowshahi (center) met with 35 drivers at Uber's headquarters in January in San Francisco at the company's first-ever Driver Advisory Forum. They also include one that's come to typify Khosrowshahi's leadership: "We do the right thing. "None of this should have happened, and I will not make excuses for it," he added. Maureen Dowd: Travis Kalanick is crazier than Travis Bickle. "They've been in damage control mode in a professional way That will get you out of what was an epic-scale mess. The family has a more formal home in Pacific Heights in San Francisco, the city where Ubers headquarters are. Dara Khosrowshahi was born in Tehran in May 28, 1969 and is an Iranian-American businessman and the CEO of Expedia, Inc. Khosrowshahi received a B.S. Welcome back! Honestly, I didnt spend a lot of time figuring it out. But at the same time, everything that Ive seen is that the U.S. is a genuine force for good in the world., Subscribe to GeekWire's free newsletters to catch every headline. You decided to leave Expedia once Barry Diller made Joey Levin the chief executive of IAC. Now she had to go to work at the Madison Avenue Celine. He took them on private planes, on the best trips ever, for summer vacations and skiing.. "If they are eyeing an IPO, they're going to have to show not only a path to profitability but to sustained profitability," says Harteveldt. [4] Ten years later, in 2015, Expedia gave him $90 million in stock options as part of a long-term employment agreement, conditioned on him staying with the company until 2020. After several deadlocked votes, Benchmark, a venture capital firm that had helped lead the effort to push out Kalanick, promised to drop a lawsuit against Kalanick if it named Whitman as CEO.