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Uber Stumbles in Lengthy CFO Search Ahead of IPO
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By: Greg Bensinger via The Wall Street Journal

May 12, 2018

 

This article is a little more interesting if you consider the issue of the CFO search within the context of the problems Uber faced over the last year. Uber was in the news for several reasons. The company's founder stepped down from his role as CEO although he remains on the Board of Directors. Problems with the company included allegations of sexual harassment, a lawsuit involving the alleged theft of trade secrets, use of software to avoid regulatory oversight and issues in international markets. The company is private but would like to go public with an initial public offering in the future. The role of the CFO is very important during the period when a company's financial performance will be evaluated by potential investors in the public market. The search for a CFO has gone on a long time. The company hasn't had a CFO since 2015. The new CEO was able to fill several positions but not the pivotal role of CFO. Uber has never been profitable but it increased ridership and revenue throughout last year even as it faced several scandals. The law firm it hired to investigate its workplace practices recommended that Uber adopt the Rooney Rule which is a National Football League policy dictating that teams interview minority candidates for top jobs.

 

1. What is the Rooney Rule and what it its objective?

2. Why is the role of CFO so important to a company like Uber considering an IPO?

3. What are some of the reasons Uber is having difficulty recruiting a CFO?