Incoming Uber chief legal officer Tony West. Photo by Photo by Diego M. Radzinschi/ALM.

It's no secret that Uber Technologies Inc. faces an uphill battle in resolving its long list of regulatory and legal problems. So when former U.S. Department of Justice prosecutor and PepsiCo Inc. general counsel Tony West was named as Uber's top lawyer, it came as welcome news to many.

Most see West's experience with regulators and his dedication to diversity as strong assets that will be beneficial for his new role as chief legal officer at the San Francisco-based ride-hailing company. He's expected to bring credibility and integrity to the legal department and the company, and he no doubt already has a list of priorities of what he'd like to see implemented among his new team of lawyers.

Regulatory Frenemies

Many lawyers who have worked with West or followed his career believe his background as the No. 3 official at the DOJ will prove useful in his new post at Uber. This public sector experience was helpful in his most recent post as general counsel for PepsiCo. Former PepsiCo general counsel Larry Thompson, who also worked at the DOJ, told Corporate Counsel he was happy to endorse West as his successor as the company's top lawyer upon his own departure in 2014.

“At the DOJ, he had an excellent reputation,” said Thompson, whose tenure didn't overlap with West's at the DOJ. Thompson now works as counsel at Finch McCranie. “As associate attorney general, he knew that scene quite well, which is something that I thought [at the time] would be helpful for PepsiCo government affairs. He had worked closely with state AGs on consumer laws and consumer product legislation.”

“Those will be experiences that will serve Uber well and serve him well,” he added.

While West's relationships are easy to view as a plus for Uber, skepticism about potential conflicts could surface among some groups, given his ties with federal regulators and the fact that his sister-in-law is Kamala Harris, U.S. senator from California.

Darry Sragow, senior counsel at Dentons, who has worked as a strategist on various Democratic political campaigns, including when West unsuccessfully ran for the California State Assembly in 2000, said that while relationships with regulators and lawmakers is helpful, West won't “get any kind of a free pass. … It just doesn't work that way.”

“From what I know of him and his career, he's well aware of that … and very respectful and cautious, and would stay way clear of any perception of a problem,” Sragow said. “The interesting thing about bringing somebody like Tony West in is that he could turn out to be the perfect person to interpret to the decision-makers at Uber the world that they find themselves having to navigate, whether they like it or not.”

Even before taking the job at Uber, West's relationships may have played a role in the move from PepsiCo.

Steve John, principal and founder of attorney executive search firm Steven John & Associates, said he would be “staggered” if former U.S. Attorney General Eric Holder did not have any hand in West's hire. Holder, now a partner at Covington & Burling, led Uber's highly publicized internal investigation into sexual harassment claims earlier this year.

“Obviously they know each other really well. Of course, Eric Holder, who's been in the midst of helping the company with its internal investigations and to ferret out where the worst of the pain points are, had to have weighed in on this hire,” John said. “I can't imagine that he did not either nominate him or firmly suggest they make this hire because he thinks [West is] the right guy for the job.”

A spokesperson for Covington declined to make Holder available for comment.

Neither West nor a spokesperson for Uber responded to multiple requests for comment for this article. Uber has not confirmed an exact start date for West, who is replacing Salle Yoo, but CEO Dara Khosrowshahi wrote in a companywide memo that West would start in November.

Legal Department Changes

Walking into the legal department with north of 200 attorneys might sound daunting for some, but West, who led a team at PepsiCo of roughly 450 people worldwide, isn't likely to be fazed. That's not to say he won't have to consider the exact makeup of this team, however: In the past, West has been known to bring colleagues with him to a new role. Is it possible that West will follow a similar approach once he settles in at Uber?

“[He] may find that there are people who bring both the technical expertise and the political acumen to shore up whatever efforts he initiates to bring things in line at Uber,” John said. “I can imagine that there are people in his universe who would not only bring terrific technical expertise … [but] also lawyers who would be complementary to his particular profile.”

And while West may be looking to fill in any gaps in Uber's legal department with former colleagues, John said he doesn't think West will dramatically change the composition of his team. “Every new leader has the prerogative of mixing up their organization once they come in and assess what it is they have at hand,” he explained. “But I suspect that, aside from getting to know everybody as quickly as possible, he is not coming in with designs to blow it up and rebuild the department.”

Strategically, it makes sense to retain those who know the business and have been in the weeds on some of Uber's legal issues, John said, adding that for the sake of business continuity, there are certain teams that should be insulated from changes, such as commercial teams.

But in deciding who to surround himself with, West is really going to have to evaluate everyone's “risk tolerances and how resistant might they be to his brand of corporate ethics,” John added.

For those who remain in Uber's legal department, they can likely expect a boss in West who will be hands-on when needed, but who does not micromanage, said Sam Hirsch, a partner at Jenner & Block, who worked with West in the DOJ from 2012 to 2014, reporting directly to West while acting head of the department's Environment and Natural Resources Division.

“[West] combines commitment to excellence with attention to legal detail, a strong moral compass and a strong preference for facts over ideology,” Hirsch said. “He's also a great leader and manager.”

He added that West will “get in the weeds” when necessary, but opts to delegate when “it's sensible.”

West will additionally have to look at his legal department's morale. With the reported firings of two in-house lawyers in May, questions were raised about the management of the legal department. In addressing the ensuing unrest, West can come into the department as a stabilizing force, said Lisa Goldstein, managing director of retained search at Special Counsel's Parker + Lynch Legal.

“I've read reports that the average turnover [in Uber's legal department] was 22 months,” Goldstein said, pointing to an August report from Corporate Counsel. “Which is extremely high. I mean people are running to get in-house at a company like Uber, and to be leaving after 22 months is just a sign that something's not right.”

“He's got to look at that,” Goldstein said of West.

Diversity

Advocating for diversity and inclusion has been a common thread throughout West's career. At an April 2014 speech while at the DOJ, West stressed the importance of voices from different backgrounds, saying, “diversity is our strength.”

He added: “It's our strength because this department's greatest resource is its people, and talent comes in all human forms, from all backgrounds and every shape, size or color, and this institution must always fortify itself with the best and broadest talent pool it can find if it is to remain strong and resilient.”

With making efforts to increase outside counsel diversity and a commitment to diversity when it comes to internal hires and promotions, this priority stuck with West when he moved to PepsiCo in November 2014. And it will likely continue to be a focus for West at Uber, Goldstein said, which has struggled thus far when it comes to company diversity numbers.

PepsiCo signed onto the American Bar Association's Resolution 113, which urges law firms and companies to create opportunities for diverse attorneys, Goldstein pointed out, adding that with West's hire, she could “see Uber signing on and promoting diversity within the entire legal profession.”

Cindy Chang, an attorney who, until July of this year, was chief of staff and senior counsel in the office of the general counsel at PepsiCo, agreed this interest will continue on at Uber, saying “he'll want to prioritize building a diverse team.”

From his understanding of regulators and government entities to his experience in-house, West will be a great asset for Uber, said Chang, who also worked with West at the DOJ. “In every organization in which I've worked for him,” she said, “he has been a catalyst for change and he doesn't shy away from difficult issues.”