Big Uber Shareholders Revolt on CEO’s Huge Pay Package Amid Layoffs

Uber CEO Dara Khosrowshahi was paid a total of $42.4 million in cash and stock in 2019. Spencer Platt

At Uber’s 2020 shareholders meeting on Monday, a group representing large Uber shareholders took issue with how much the ride-sharing giant is paying its CEO Dara Khosrowshahi while the company slashes thousands of jobs and its contractor drivers struggle to make ends meet amid the coronavirus pandemic.

CtW Investment Group, an advisory firm working with some of Uber’s substantial shareholders, called for shareholders to vote against Uber’s Say-On-Pay proposal regarding Khosrowshahi’s compensation package.

“Say-On-Pay” is a legal term that describes a corporate governance rule that gives shareholders the right to vote on the compensation plans of their companies’ highest-earning executives. Say-On-Pay votes are a key indicator of what a public company’s shareholders think of its executive pay packages. In Uber’s case, 70 percent of shareholders supported CEO Khosrowshahi’s compensation package at the most recent voting, which significantly lags behind the industry-average approval rate of 90.5 percent (as of 2019), according to a report by Semler Brossy, an executive compensation consulting firm.

CtW specifically called attention to Khosrowshahi’s “golden hello” sign-on package when he joined Uber in 2017. Under the plan, he would receive an equity award worth $100 million if Uber’s market worth reaches $120 billion and manages to stay there for longer than 90 days.

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SOURCE: Observer – Sissi Cao