Uber shareholders voted against a proposal that would require the company to call a taxi fully disclose their direct and indirect lobbying activities and expenses in accordance with the regulatory registration released on Thursday.
The measure was proposed and rejected by the shareholders earlier. But this year’s results show that a growing number of shareholders are keen to demand full disclosure. About 45% of shareholders voted in favor of the measure, compared to about 30% last year. Two-thirds of the shareholders must vote for the proposal to be approved.
The surge in favor signals a supporter victory in what is sure to be a multi-year process to encourage companies like Uber to be more predictable in their spending.
The proposal, presented by the International Brotherhood of Drivers, argues that Uber’s lack of full disclosure of its lobbying activities poses many risks for the company. The most obvious of these is the potential risk to a company’s reputation if it is found to be supporting a cause that its users consider questionable.
The real risk, says Michael Price-Jones, Senior Government Analyst at Teamster, lies with the sustainability of the business itself.
“How much do you need to lobby to develop your markets or defend your markets? Because it depends on how you make money,” Price-Jones told TechCrunch earlier.
The vote comes as Uber, along with other app-based gig companies, continue to actively lobby and support so-called grassroots independent worker rights organizations to classify gig workers as contractors rather than employees. Uber’s business model relies on drivers not paying and delivering workers as employees, which includes benefits such as minimum wage and sick leave, as well as protections such as workers’ compensation.
Most infamously, Uber contributed about $30 million to California’s Proposition 22 campaign, which ended up with over $200 million. The company is actively working to pass similar laws in other states of the country, such as Massachusetts, Colorado, Illinois, New Jersey, New York and Washington.
Three other proposals were submitted and approved on Monday, all with the board’s recommendation to vote in favor. The first is a proposal to elect 11 directors to serve until the 2023 AGM and until their successors are elected. The selected directors currently sit on Uber’s board of directors.
Uber shareholders also voted to approve, on a non-binding advisory basis, compensation in 2021 to appointed Uber executives. CEO Dara Khosrowshahi’s targeted compensation split into 6% salary, 12% cash bonus and 82% long-term capital. In practical terms, this amounts to $1 million in wages, $16 million in stock compensation, $2.4 million in non-equity incentive plan compensation (which is basically just a bonus), and $507,738 in other compensation (mainly for security and personal safety). expenses), which adds up to a whopping $20 million in CEO compensation in 2021.
For other executives, the breakdown was 9% salary, 9% cash bonus, and 82% long-term capital. Here is a breakdown of total executive remuneration:
- Nelson Chai, Chief Executive Officer: $6.8 million
- Jill Hazelbaker, senior vice president of marketing and public relations: $7.9 million
- Tony West, Senior Vice President, General Counsel and Corporate Secretary: $7.4 million
- Nikki Krishnamurthy, senior vice president and director of human resources: $10.7 million.
Uber has an executive rewards philosophy that supports its goals of attracting and retaining talent, aligning executive incentives with company performance, providing additional financial incentives to achieve certain milestones, and “strengthening cultural norms,” whatever that means.
Here’s a snippet of Uber’s reward philosophy taken from a regulation. registration:
“To help create long-term shareholder value and tie our executive compensation to these long-term strategic goals and the key drivers of our business, our philosophy and compensation program focuses on the long-term elements of targeted total compensation.”
Finally, Uber shareholders voted to appoint PricewaterhouseCoopers LLP as the company’s independent registered accounting firm for 2022. This is not surprising since PwC has also served as Uber’s accounting firm for the last two fiscal years.
Credit: techcrunch.com /