By Heather Somerville
SAN FRANCISCO (Reuters) - With Chief Executive Travis Kalanick taking a leave of absence from Uber Technologies Inc, the vacant job of chief operating officer takes on a lot more importance as the company frames the position as key to solving its woes.
Kalanick, under fire for crass behavior and fostering a culture of sexism and rule-breaking, in early March announced he was searching for a COO to help run the ride-services company. But in the months since, Uber has suffered a string of controversies and embarrassing setbacks and the job has remained unfilled - part of a leadership vacuum that extends through the company and up to the board of directors.
In a report released Tuesday, former U.S. Attorney General Eric Holder and his law firm, Covington & Burling, recommended sweeping management changes at Uber in the wake of sexual harassment allegations and other scandals.
The report advocates for a COO who "will act as a full partner" and run "day-to-day operations." It also calls on the board of directors to take steps to limit the CEO's responsibilities and provide "clear lines of demarcation between" the COO and the CEO.
"The way the COO job is written in the recommendations makes it a really powerful and important job," said Bradley Tusk, an Uber investor and adviser.
Executive recruiters and tech investors agreed that the job might look more appealing now than it did before Tuesday's report. Still, it remains unclear if the company can attract a top-notch leader while Kalanick retains both the CEO title and, along with two allies, voting control of the company.
Kalanick said on Tuesday he was stepping aside at Uber because he needed time to grieve his recently deceased mother and work on his leadership shortcomings, according to a staff email seen by Reuters. He also said his leave "may be shorter or longer than we might expect."
Such ambiguity will effect Uber's efforts to rebuild its executive ranks, startup experts say.
"The lack of clarity around Travis' position hangs over everything," said Bill Aulet, managing director of the entrepreneurship center at the Massachusetts Institute of Technology. "You're dealing with the most important thing, which is, who is your boss?"
VACANCIES AT THE TOP
In the meantime, 14 people who report to Kalanick are charged with running the company until the CEO returns or a COO is hired. The company also is without a chief financial officer, general counsel and a head of engineering, among other open positions.
"We have a strong leadership team including veterans who helped make the business what it is today and new talent who are helping to drive the changes we're committed to making," Uber said in a statement.