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Business Pants

Business Pants

Hosted by Free Float Media Inc.

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Aug 2026

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Whether you love business news or feel like you’re supposed to know it but hate it, Business Pants is business news for humans. Snarky and irreverent, deeply researched and factual, a podcast devoted to market quirks and the humans that make up companies. Investing isn’t a what, it’s a who.

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August 7, 202659 min

Meritocracy = boys, DOGE fraud, Zuck’s publicity stunt, simple minded governance

Story of the Week (DR):Uber’s Strategy for Fighting Sexual Assault Suits: ‘What Were You Wearing?’An aggressive defense strategy is being used in response to an avalanche of litigation, with over 4,000 lawsuits filed by passengers accusing Uber of failing to protect them from sexual assaultWhile Uber publicly champions itself as a "survivor-centric" ally and trains support staff against victim-blaming, its defense lawyers ruthlessly contradict this to protect the $145 billion company.Uber’s attorneys aggressively interrogate survivors about their clothing (e.g., asking if they wore underwear or heels), drug and alcohol consumption, and sexual history.The legal team weaponizes past trauma by scouring private medical records and therapy notes, even petitioning courts to force survivors to undergo psychiatric exams or reveal details of childhood abuse to paint them as "unreliable narrators".Legal experts warn these scorched-earth tactics are deliberately designed to re-traumatize victims, discouraging lawsuits and intimidating survivors into settling.Chief Legal Officer Tony West: “Why safety is personal to me”Cites his public service career to cover for ruthless corporate tactics, like drafting Prop 22 to strip driver protections.Frames survivor trauma as a flaw of the "adversarial legal system," deflecting from Uber’s own attorneys using aggressive, victim-blaming tactics to minimize payouts.Uses a single favorable quote from one trial judge to dismiss widespread litigation abuse.Touts ending forced arbitration while continuing to block class-action lawsuits, trapping survivors in isolated 1-on-1 fights.Brags about transparent reporting despite Uber burying 400,000+ assault complaints (2017–2022) under labels like "unaudited."TikTok Withheld a Safety Feature From Millions. One Died by SuicideWhen TikTok tweaked its algorithm in 2021 to stop users from being overwhelmed with harmful content, the company didn’t roll out the safer version to everyone, a confidential internal document shows.Instead, to see if the change might reduce the app’s stickiness, the company conducted an experiment. It created a control group of 10% of US users — at the time, that would have been about 15 million people — who kept the old version of the app.This group, according to the document, included 16-year-old Chase Nasca. TikTok’s algorithm pushed him thousands of videos about suicide, sadness, hopelessness and loneliness, right up until he killed himself.TikTok says moderator error delayed removal of Perez Hilton's livestream showing acts of self-harmGAO finds Elon Musk’s DOGE inflated claims of $110 billion in savings for federal governmentThe GAO found that 96% of the savings DOGE claimed from grant cancellations lacked supporting evidence or methodology to verify.DOGE claimed $27.4 billion in savings across 2,503 contracts—including a $1.7 billion Pentagon IT deal—that were never actually terminated or reduced.Over 40% of the lease cancellations listed on DOGE’s "Wall of Receipts" were already in progress before the agency was created.GAO uncovered widespread data errors, such as overstating total lease savings by nearly $60 million and failing to report baseline limitations.DOGE failed to disclose how it calculated its metrics and completely ignored GAO requests for interviews and supporting data.Where are Elon Musk’s former DOGE staffers now?Edward “Big Balls” Coristine: a whistleblower alleged that Coristine planned to upload sensitive Social Security Administration data to an unsecured server. He also helped dismantle the U.S. Agency for International Development, or USAID.Coristine now appears to work at the National Design Studio, an office created to overhaul federal websites and other public-facing services, making them more usable, visually consistent and less expensive to build.Jeremy Lewin: helped oversee the dismantling of USAIDLewin later became the State Department’s senior official for foreign assistance, humanitarian affairs and religious freedom, giving a former DOGE operative authority over the programs his old team had helped slash.He was subsequently reported to be moving to the White House National Security Council.Nate Cavanaugh and Justin FoxFounded a holding company called Special, which promises to do for private businesses what DOGE did for the federal government.“To achieve this, Special is building an operating system to transform critical American industries with AI. We call it SpecialOS.”Gavin Kliger, Luke Farritor, Marko Elez and Jack SteinFounded Cathedral, a startup that plans to use AI to expand U.S. military cyber capabilities, including defenses against adversaries such as China.Reuters reported that the company raised $160 million at a $1.4 billion valuation.Ethan Shaotran: helped move thousands of immigrants into the government’s “Master Death File,” effectively deactivating their Social Security numbers.Founded Blitz Industries, which he described to Wired as “a defense company backed by big names.”Elon Musk: SpaceX Achieves Its First Moon Landing by Accidentally Crashing Into It at 5,400 Miles Per Hour, Causing Huge Explosion and 60-Foot CraterWhy companies that call themselves meritocracies don't always pay equally AND Meritocracy claims make managers pay men more than equally qualified women MMExplicitly branding an organization a "meritocracy" lowers managers' vigilance against bias, ironically making them more likely to discriminate.Given identical job titles and performance ratings, managers in self-proclaimed meritocracies systematically award higher bonuses and raises to men over equally qualified women.The meritocracy illusion compounds wage gaps across demographics, yielding lower financial rewards for women, racial minorities, and immigrants with identical output.Vague definitions of "merit" allow supervisors to act on personal favorability and affinity bias while genuinely believing their choices are purely objective.Trusting the "meritocracy" label creates false complacency, leading companies to eliminate or skip active pay-equity audits that would otherwise catch these disparities.Goodliest of the Week (MM/DR):DR: Google Scraps AI Satellite Images Within 24 Hours: Why 'Deepfakes in the Sky' Alarmed ResearchersThis happened after facing fierce backlash from journalists, researchers, and open-source intelligence experts who warned that it could accelerate the spread of misinformation.The feature allowed users to generate AI-created satellite images by zooming into any location in Google Earth and entering a text prompt.MM: Courts: MM DRCourt rules against Trump EPA’s freeze of $20B in ‘green bank’ fundsUBS fined record $125 million for money laundering violationsMeta fined $567m in largest child safety ruling against social media giantJudge says Nexstar can’t appoint its executives to TEGNA’s Board of DirectorsAssholiest of the Week (MM):Everything’s a publicity stunt:Jealously Watching OpenAI and Anthropic, Meta Suddenly Claims That Its AI Went on a Hacking Spree TooZuckerberg conveys ‘apologies’ for child sex abuse material, errors in operating the platform, government sources say‘Pure insanity’—Elon Musk details SpaceX’s plan to turn the moon into its newest manufacturing siteAnthropic's Mythos created fake identities to fool humans in new cyber incidentGAO finds Elon Musk's DOGE inflated claims of $110 billion in savings for federal governmentEverything’s a vanity projectJeff Bezos Says He’s Selling $1 Billion In Amazon Stock Every Year to Fund Blue Origin — ‘It’s The Most Important Work I’m Doing’SpaceX Achieves Its First Moon Landing by Accidentally Crashing Into It at 5,400 Miles Per Hour, Causing Huge Explosion and 60-Foot CraterJudge Sets Paramount-Warner Bros. Merger Trial for MarchEveryone’s a victimThe AI bros are lonelyPalantir CEO Alex Karp Says Frontier AI Labs Will Steal Your IP, Your Know-How, and Your Expertise — ‘You Deserve To Be Colonized’‘Socialism is a disaster’: Bill Ackman says Zohran Mamdani’s bad left-wing housing policy is worsening New York’s affordability crisisNo one is accountable DRBobby Kotick, former CEO of Activision, may join Paramount's board of directorsJefferies analyst calls out ‘simple-minded’ criticism of SpaceX’s governanceABC, CBS, and NBC aired nearly 200 segments about three U.S. heat events without mentioning climate changeDisney (Iger, still), Ellison family, and Roberts family - one cowed exec, two dictators!Headliniest of the WeekDR: Pepsi is launching soda-scented body wash and scrub in a beauty collaborationPwC U.S. CEO [Paul Griggs] advises young workers to say yes a lot, even if it means working on the weekends—‘That person climbs into the next role’Top Consulting Group PwC Caught Using AI on “Thought Leadership” Report About AI, Resulting in Corporate Document Filled With Bizarre HallucinationsDoorDash CEO Tony Xu once thought his $87 billion company would only make $100 million. He tells founders to be ‘greedy’ and dream biggerClass A = 1 vote; Class B = 20 votes; CEO Tony Xu personally owns roughly 3% of actual shares but controls 55% of voting power via a “binding agreement” with the other co-foundersMisleading proxy shows he got paid $432k (they cited a 12:1 pay ratio) but he actually made $343M from shares and stocksDoorDash excludes Dashers from SEC disclosures by classifying them as 1099 independent contractors.Factoring drivers into the worker pool expands the headcount from 20,000 to over 7 million, moving the median worker from corporate offices directly onto the delivery platform.Dasher: while gross pay averages ~$15–$22/hour, net driver earnings sink further after deducting out-of-pocket expenses like fuel, vehicle wear, and self-employment taxes, pulling true net median compensation closer to $400–$900 annuallyAnthropic CEO reportedly worried new hires only care about money: reportedly expressed concern about new talent coming to the company for the money rather than the missionMM: Stripe CEO says his ‘urgency’ to drop out of MIT ‘was a bit unnecessary’Who Won the Week?DR: Harvard Business School graduates TikTok CEO Shou Zi Chew and TikTok US CEO Adam Presser, because nobody ever talks about you or knows who you areMM: Meat.  After seeing Salad and Go files for Chapter 11 bankruptcy after cyclospora fears worsened its challenges, you can’t help but wonder if RFK Jr orchestrated a parasite to get people to buy more meat.PredictionsDR: Tony Xu introduces Class F stock where shareholders’ children enter indentured servitude and must deliver 1000 Cheesy Gordita Crunches from Taco Bell before they are set free ; they will then get 0.0002 shares per voteMM: Boards are calling retired CEOs back as succession pipelines run dry: Boards run out of ex-CEOs to re-king and begin looking for different, egalitarian, integrated professionals to fill new roles.  They call it DEI.

August 4, 202657 min

IN OR OUT: SpaceX earnings, Uber sex assault, governistas, meritocracy

DRMatternet Appoints Starbucks EVP Sanjay Shah to Board of DirectorsDeveloper of commercial drone delivery systems for urban and suburban environmentsCEO/founder Andreas Raptopoulos: M.A. in Industrial Design Engineering; Diploma of Imperial College in Industrial Design Engineering; Diploma in Mechanical EngineeringChris Dawson: M.B.A. from INSEAD.Sanjay Kotte: B.B.A. in finance and management; M.B.A. and J.D.Laurence Marton, M.D.: expert in drug development, polyamine metabolism, and cancer research,Saurabh Ranjan: certification in human resource and law; M.A. and M.B.A.No female directors or executives but now a second Sanjay: IN OR OUTSanjay Shah: B.S. in Mechanical EngineeringStarbucks Chief Supply Chain OfficerSVP of Operations, GopuffCOO, Beyond MeatSVP, TeslaVP of North American Customer Fulfillment, AmazonAAON Increases Board Size and Appoints Robert L. Buttermore III, and Patrick J. Jermain as Independent DirectorsBefore 2/9 F now 2/11 FAAON manufactures heating, ventilation, and air conditioning equipment for commercial and industrial indoor environments IN OR OUT: Robert L. Buttermore III: BS mechanical engineeringChief Supply Chain Officer of Rockwell Automation, one of the world’s leading industrial automation and digital transformation companiespreviously led Rockwell’s Power Control business and oversaw strategic expansion initiatives supporting industrial, semiconductor, energy, HVAC, and data center customers. IN OR OUT: Patrick J. Jermain: MBAFormer CFO PlexusAdministration and Management: 100%. The others:Caron A. Lawhorn: former CFO, ONE Gas, Inc.Stephen O. LeClair: MBA, Chair/former CEO, Core & MainBruce Ware: MBA, CEO, One America Bancorp Inc., a financial institution that he founded to provide niche financial and banking servicesUber’s Strategy for Fighting Sexual Assault Suits: ‘What Were You Wearing?’IN OR OUT on the board skillset: Consumer and Digital Experience: “Background in the development and improvement of consumer experiences with a company’s products, services, and brand, including through a digital interface.” AND Sustainability and Human Capital Management: “Experience in corporate responsibility, human capital management, and managing sustainability initiatives.”Who is in BOTH?Arora: CEO, Palo Alto Networks (cybersecurity); SoftbankBurns: Former CEO/Chair Xerox; currently invests in techEckert: Partner at PE firm; former CEO MattelGinsberg: Partner at PE firm; former CEO Match GroupKhosrowshahi: CEO; former CEO ExpediaSugar: Former CEO Northrop Grumman (war); Apple: Foxconn suicide machineWynaendts: former CEO Aegon (life insurance); Deutsche bankIN OR OUT on Chief Legal Officer Tony West: “Why safety is personal to me”Uses past public service as a human shield for his current corporate ruthlessness: West spends roughly a third of the statement reciting his resume (prosecuting child exploitation, doing pro bono work for domestic violence survivors, and overseeing the Office on Violence Against Women under Obama) which is why “I would never support or condone conduct—inside or outside a courtroom—that fails to treat women and survivors with dignity and respect”West was a chief architect and defender of Uber's ruthless campaign to pass Proposition 22 in California. Uber and other gig companies spent hundreds of millions of dollars to exempt themselves from state labor laws, ensuring their drivers remained classified as independent contractors without a minimum wage, healthcare, or sick leave.Blames “the system:” “I’ll be the first to say that our adversarial legal system can be particularly tough for survivors. By its nature, the trial process is designed to extract facts ... And the fact that all of this occurs in public view makes it all the more difficult …” “The system" isn't asking victims what they were wearing—Uber’s highly paid defense attorneys areWest is shifting the blame from his own legal department's aggressive, victim-blaming litigation strategies onto the abstract concept of the "adversarial legal system."the New York Times and unsealed court documents from the multidistrict litigation (MDL) reveal, once a survivor steps into a courtroom, Uber’s high-priced defense lawyers resort to classic, traumatizing victim-blaming. Asking women what they were wearing or weaponizing their personal histories to discredit them is a deliberate strategy to minimize corporate payoutsCherry picks one favorable moment: West quotes a single federal judge from a February trial who praised Uber’s attorneys, saying they did not engage in "the slightest bit of shaming" and that he wanted it "clear on the record."one favorable quote from one judge in one specific trial: "Look, this one guy said we're nice, so the New York Times must be lying."Bullshits the bigger picture: “Uber was among the first companies to end forced arbitration and mandatory confidentiality agreements in matters involving sexual assault and sexual harassment”Yes, they ended individual forced arbitration, but they fought ruthlessly to ensure survivors still cannot form class-action lawsuits. Forcing victims to fight Uber one-on-one is a massive legal advantage for the companyLies about ESG data: “Uber was also the first—and continues to be one of the only—companies to voluntarily and consistently publish data on the reports of sexual assault”They published "safety data," but as the Times revealed, they hid hundreds of thousands of complaints by categorizing them as "unaudited" or "less serious."While Uber publicly reported a few thousand incidents, internal documents showed they received over 400,000 reports of sexual assault or misconduct between 2017 and 2022.Jefferies ESG chief says investors overstate SpaceX governance risksAniket Shah, Jefferies' global head of sustainability: Investors who avoid SpaceX because of Elon Musk's extraordinary control over the company may be letting governance concerns outweigh potential long-term returns"The idea that there's an — in quotes — acceptable form of good governance" is one that "I highly question," Shah said. "People who try to put governance into some kind of straight-jacket are too simple-minded and, frankly speaking, not looking at data."“Investors who rely on governance checklists alone risk overlooking companies capable of generating substantial long-term returns, particularly founder-led businesses that concentrate decision-making power in a single executive.”IN OR OUT on SpaceX? Did he change your mind?Does this help change your mind? Bill Ackman Says "Never Bet Against Elon," Even as He Passes on SpaceX Stock. Here's Why He's Staying Out.IN OR OUT on SpaceX? Did Bill change your mind?IN OR OUT based on this headline: Mark Zuckerberg Says AI Will Create An 'Infinite' Instagram: outlined a vision where AI-generated content becomes a third major source of contentMark Zuckerberg and Priscilla Chan’s school is the latest billionaire education experiment to collapse: The Primary School closed after nearly a decade, following disappointing outcomes and a shift in the Chan Zuckerberg Initiative’s philanthropic priorities from social advocacy toward scientific philanthropyThe Primary School was a passion project for Chan, who regularly visited the campus, read books to kindergartners, and appeared in a curriculum video with Sesame Street’s ElmoDespite her hands-on approach, the school struggled with some of its nontraditional elementsTeachers, for instance, were required to sign nondisclosure agreements, and the school experienced high turnover among principals.Finding the right curriculum and policies also proved challenging as administrators tried to determine the best approach to teaching students.Chan told The Wall Street Journal last year: “The outcomes just weren’t where [the board] would have wanted them to be or, frankly, anyone would have wanted them to be.”IN OR OUT on the Chan Zuckerberg Initiative?MMIN OR OUT: Your AI strategy isn’t failing because of bad design. It’s because your team doesn’t believe in youWhich is more likely - the team is rejecting AI or the messenger?In which case, IN OR OUT round - if you were employed by the following, and they said you were going to execute an AI strategy, you buying or selling?Mark ZuckerbergALL IN BABY!  FIRE EVERYONE! SELLJamie Dimon“Total redeployment” BUYBill Brown, CEO at 3MAsk3M - product innovation using AI (talk to a chatbot and get ideas I think?) SELLKelly Ortberg, CEO at Boeing“Intelligence” - enhance spec drawings and productivity?  They’re not going deep on AI yet, no money BUYBrian Cornell, Target not-CEO-but-actually-CEOOne bullet: Using data and technology in new ways to strengthen inventory planning, improve in-store consistency and enhance guest interactions SELLSpaceX's first-ever earnings report comes with stock under pressure: Q2 previewStraight up, IN OR OUT - buying SpaceX with it cheap or selling?Elon Musk still runs it like an uncontrolled dictator with sycophants surrounding him!Aniket Shah says you shouldn’t be so parochial about that or you’ll miss “generational wealth event” like with Facebook, because Facebook was good for everyone!Musk rumored to be building an entire telco (or buying one) because his personal net worth can afford to buy him Verizon and still have almost $800bn left over!Everyone calling this a “test”, but it doesn’t matter since the only thing you can do is buy or sell!Meritocracy claims make managers pay men more than equally qualified womenIN OR OUT: MEN OR WOMENStarbucks CEO Earns 1,794 Times More Than the Average Worker: Here's Why He's Paid $31MIN or OUTThe turnaround strategy is working - Niccol made more than any other restaurant CEO per share, stock is up!Starbucks pay committee is a mess of overpaying, interconnected directors: Ritch Allison (chair) bats .249 on pay ratio, Andy Campion bats 0.041, Mike Sievert 0.067, Neal Mohan 0.031.  These are literally the among the highest paying directors in the database - so did he earn it or do these people not care and pay egregious amounts?ALL the execs make a lot - is it a good sign when all the execs get PAID, since they’re making money in stores?Not EVERYONE is making money - Starbucks not only regressed its offer to the union, they sued them to no longer use the Starbucks logo (which is so fucking petty), and Niccol refused to negotiate with them at first and excluded them from the bonus poolStock is up 20% YTD, 15% in last year!  Beating the S&P (slightly)!

July 31, 20261 hr 4 min

Cracker Barrel hires Herschel, fake apologies, and AI will kill us by 2036

Story of the Week (DR):Cracker Barrel CEO is out after MAGA backlash to "Uncle Herschel" logo change MMBefore Julie Masino was brought in, Cracker Barrel was facing a slow-moving existential crisis:Their primary core customer base (older generations and rural highway travelers) was naturally shrinking, and younger diners were simply not replacing them.Kitchen tech, supply chains, and digital ordering lag behind competitors like Texas Roadhouse or Olive Garden.Some great fake populism from Fox: Cracker Barrel to pay for outgoing CEO’s security, $4.6M severance after failed rebrandCracker Barrel names David Deno CEOBurger KingYum! Brands and Pizza Hut for 15 years, including serving as CFO and COO.Quiznos CEO.Best Buy: Served as President of Asia and CFO for Best Buy's International DivisionBloomin' Brands for 12 years: CEO, CFO and Chief Administrative OfficerOutback Steakhouse, Carrabba's Italian Grill, and Bonefish GrillBoard MembershipsCracker Barrel Old Country Store (2016-)Panera Brands (2024-): Audit Committee ChairKrispy Kreme (2016-)Bloomin' Brands (2019–2024)Peet's Coffee (2006-2012)Macalester College: Former Chair of the Board of Trustees (1998-2022).From Cracker Barrel to Boeing, Companies Are Turning to Retired CEOsThese retired CEOs are being hired to be "fixers." They are brought in to cut costs, repair supply chains, restore investor confidence, and act as a stabilizing force rather than reinventing the brand.Exxon and Chevron profits surge on rising oil prices due to Iran warChevron posted its highest profit in six years as the Iran war boosted oil pricesBig Oil Is Getting Sued for Heat Deaths. It’s Fighting Back With an Army of Immunity LawsMore than a decade after investigations found that Exxon Mobil had known about the dangers of global warming since the 1970s but publicly downplayed the threat, lawsuits against oil companies have proliferated. There are nearly 40 of these cases pending across the countryIn the meantime, the industry has been mobilizing a counterattack against the lawsuits with the help of the Trump administration and Republican politicians.Republicans are trying to pass laws to grant oil majors immunity to these kinds of lawsuits, with success in several states so far.Utah, Iowa, Tennessee, Oklahoma, and Louisiana have recently signed laws shielding fossil fuel companies from lawsuits related to greenhouse gas emissionsOil executives have also gotten help from the federal government, following an executive order from President Donald Trump last year directing the attorney general to prioritize blocking climate lawsuits by states.This May, the Justice Department responded to Minnesota’s climate lawsuit against Big Oil with a lawsuit of its own, just as the state’s case was moving into the discovery phase. It said Minnesota was undermining “American energy dominance” and attempting to regulate greenhouse gases, which should fall under the purview of federal law—echoing the oil industry’s well-known argument.Elon Musk Is Quietly Turning to This Fossil Fuel to Power His AI AmbitionsSam Altman Announces That the Singularity Has Arrived: a hypothetical future point in time when technological growth becomes autonomous, uncontrollable, and irreversible, fundamentally transforming human civilization“We are now, like, in the singularity ... Now we’re actually in the moment that we used to talk about at the lunch table in a very not-serious way ...I’ve been waiting for this my whole life, and I think it’s going to be incredible, hugely positive, awesome for the world.”Sam Altman says one of his biggest fears is that a small number of companies will control AI: 'That'd be very, very bad'Sam Altman says the Hugging Face hack is a reminder that an AI power monopoly could lead to 'long-term disaster'OpenAI says its rogue AI tried to hack other companiesMark Zuckerberg is urging the U.S. to accelerate AI development, not restrict it’No Way to Stop It': Elon Musk Warns Humans Will Lose Control of AI and Face Extinction by 2036Microsoft CEO Warns That Companies Embracing AI Could Drive Themselves Out of BusinessAI hackers are getting faster. The government may not be readyAnthropic says its Claude models 'gained unauthorized access' to other organizations' systemsAnthropic says its models went rogue and hacked 3 companies during testing’It Will Happen Frequently': Musk Warns of Rogue AI Threat After Anthropic Breached Three FirmsElon Musk Commits Up to $120M to Republican Midterms: Sets Feud With Trump Aside for Major Election PushGoodliest of the Week (MM/DR):DR: Gen Z women are having an entrepreneurship boomOf all women who started businesses in 2025, 47% of Gen Z women did so, compared with 38% the previous year. Gen Xers followed close behind at 46%. Then came millennials at 43% and baby boomers at just 23%.Overall, in 2025, 69% of new Black-owned businesses were started by women. The survey also found that women business owners are less likely than their male counterparts to depend on AIMM: Delaware judge rules public benefit corporations exempt from maximizing value in sale DRFiduciary duty is different - OpenAI, AnthropicAssholiest of the Week (MM):Fake man apologies MM‘I’m sorry ... but’: Apologetic Alan Joyce tells his side of the Qantas storyJoyce has expressed some regret“So with the information we had at the time, I still don’t think there was any other decision you could make,”“Hindsight is a great thing.”“I’m actually very, very proud of the fact that I’m not sitting here and apologising for Qantas going bankrupt, [something] that many airlines around the world did,”Australian Competition and Consumer Commission fined Qantas $120 million for selling tickets for 8000 already cancelled flights“I apologise for the angst that was generated [for] the customers on it, but the reality was we had 22 million bookings in the system [and] the system wasn’t designed to do an automatic refund,”“Stop us!”More than 1,200 AI workers across Anthropic, DeepMind, OpenAI, and Meta are asking for Washington’s help building an AI slowdown plan‘No Way to Stop It': Elon Musk Warns Humans Will Lose Control of AI and Face Extinction by 2036Elon Musk’s new 5-year warning to Americans: AI will beat human brains by 2032 (then go wild). Get rich or get crushed?Sam Altman says the Hugging Face hack is a reminder that an AI power monopoly could lead to 'long-term disaster'It Will Happen Frequently': Musk Warns of Rogue AI Threat After Anthropic Breached Three FirmsBut also, DON’T stop us, obviously…Palantir CEO warns US against Europe's AI regulation path, urges Trump admin to not ban open modelsElon Musk's xAI sues Minnesota over law to ban 'nudify' appsMark Zuckerberg is urging the U.S. to accelerate AI development, not restrict itElon Musk Commits Up to $120M to Republican Midterms: Sets Feud With Trump Aside for Major Election PushIgnoring boardsHims & Hers mission:“Hims & Hers is the leading health and wellness platform on a mission to help the world feel great through the power of better health. We believe how you feel in your body and mind transforms how you show up in life. That’s why we’re building a future where nothing stands in the way of harnessing this power. Hims & Hers normalizes health & wellness challenges—and innovates on their solutions—to make feeling happy and healthy easy to achieve. No two people are the same, so the Company provides access to personalized care designed for results.”Hims & Hers board:CEO: Andrew Dudum, tech VC bro investor “serial entrepreneur” with deep health experience from Bungalow (airBnB knockoff in the UK), Homebound (a “homebuilding platform”), TalkIQ (an AI startup, duh), and Terminal (something about scaling engineering?)TWO directors from DoorDash (Kofi Amoo-Gottfried from Marketing, previously of Facebook, and Christopher Payne the COO, previously of eBay, MSFT, and Amazon)TWO pharma execs (one lawyer, Deb Autor, one with an econ degree, Kare Schultz)One guy from Netflix (David Wells) and one lady from Urban Outfitters (marketing/brand, Andrea Perez) and one pure law firm lawyer (Anja Manuel)ONE DOCTOR EXCLUSIVE: US FTC sues Hims & Hers for sending user health info to Meta, SnapUsers' sensitive health information was shared with online advertising companies including Meta ​Platforms and Snap despite the company leading customers to believe their ​data was private, the FTC alleged in the lawsuit filed along with Los ⁠Angeles County and Utah.Hims & Hers also started charging users for prescriptions before ​they have ⁠had a chance to meet with healthcare providers, the FTC alleged. Most customers do not receive a consultation with a provider, and instead are charged for ⁠prescriptions ​soon after filling out an intake form, ​according to the agency.Headliniest of the WeekDR: CEO apologizes for offering interviews to people who got tattoos of his AI company logoSan Francisco tech CEO Jordan Zietz, co-founder of an early stage AI startup called LemonLime. Stanford grad.“LemonLime learns your business and then automates your team's busywork in a single click, no coding or manual setup required.”Former Qantas CEO reflects on tenure, issues apology to passengers over post COVID chaos AND ‘I’m sorry ... but’: Apologetic Alan Joyce tells his side of the Qantas storyMM: Amazon received $600 million in tariff refunds and will pass some back to customersMM: Trump Staff Cuts Blamed After Watermarked OpenAI Map Mislabels Africa at AIDS ConferenceIt’s the fact that we have less staff that meant we couldn’t bother to figure out which country was whichWho Won the Week?DR: Kohls: For getting some much-needed female influence on board: Kohl’s Appoints Wendy Arlin as Chair of the BoardCurrently only 2: Robbin Mitchell (7%) and Wendy Arlin (1%)John Schlifske (27%) stepping downMM: The phrase “not due to any disagreement with the Company”Anne Sweeney Resigns From Netflix BoardOn July 26, 2026, Anne Sweeney notified Netflix, Inc. (the “Company”) that she was resigning from the Board of Directors of the Company effective as of that date. Ms. Sweeney's resignation is not due to any disagreement with the Company1,660 8-Ks in the last 5 years have the exact phrase “not due to any disagreement with the Company”So we’re saying that 1,660 c-suite and board members resigned in 5 years - more than 300 per year - and NONE were due to a disagreement with the companies?  That’s only THAT phrase - no other details are given for most of them except occasionally:To pursue another jobPersonal reasonsFor scale, in the last 5 years, the term “was due to a disagreement with the Company” appears… 5 timesPredictionsDR: Qantas CEO Vanessa Hudson apologizes that it took former CEO Alan Joyce to apologize for something she already apologized for despite not being CEO when any of it happenedMM: Damion resigns from Free Float due to a disagreement with the zero dollars he gets paid, but Free Float puts out a statement saying it’s “not due to any salary reason related to the company”

July 28, 202634 min

Zuck reads your kids to sleep, pervert glasses, and dual class federal elections

DR1CEO OverlordsIn our 'Zuck saves kids from Mommies' headline of the week. Meta Working on Crushingly Sad AI App That Tells Bedtime Stories to Children, for “Tired” Parents*************** In our 'CEO overlords say the trick to getting a good career is figuring out how to please us' headline of the week. As millions of Gen Zers face unemployment, CEOs of Amazon, Citi, and McDonald’s say opportunity is still there—if you have the right mindset*************** In our 'If you have to ask why then you probably won't understand the answer' headline of the week. Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?***************Tobias Lütke, CEO/cofounder of ShopifyIn our 'Yeah, but they waaaaaaant it' headline of the week. The Type of Orbital Data Centers That Billionaires Want to Launch Into Space Would Wreak Ecological Catastrophe, Scientists Warn*************** In our 'Meglomaniac looks in the mirror, doesn’t like what he sees' headline of the week. Sam Altman says one of his biggest fears is that a small number of companies will control AI: 'That'd be very, very bad'*************** MM1In our 'I mean, it didn't ONCE tell me to kill myself!' headline of the week. Sam Altman says he got ‘addicted’ to TikTok, including a Saturday afternoon where he scrolled ‘for like 3 hours’In our 'Sorry, I was scrolling TikTok... what happened?' headline of the week. Sam Altman Announces That the Singularity Has ArrivedIn our 'Things that you can get carried away doing include ordering pastrami sandwiches, buying Christmas presents, and plucking your eyebrows' headline of the week. Musk Says He Got “Carried Away” With DOGE Cuts, Which Are Set to Kill MillionsIn our 'Zuckerberg announces another massive company rebranding: from Meta Platforms to Pervert Platforms' headline of the week. Meta Desperately Trying to Ban Creeps Misusing Its AI “Pervert Glasses”Does Mark count?In our 'Are boobs pecuniary?' headline of the week. Cracker Barrel CEO is out after MAGA backlash to "Uncle Herschel" logo changeAre logo changes pecuniary?  Isn’t the fact that a logo changed and it cost money and the CEO her job evidence that ESG data IS PECUNIARY? The logo is non-financial!  ESG for all!DR2In our 'Sorry, watching World Cup' headline of the week. OpenAI didn't realize its agent was responsible for hack for a week*************** In our 'What's next? Are they going to start wearing glasses?' headline of the week. Japan office workers cool off with shorts amid record-breaking summers*************** In our 'Come for the ethically sourced, single-origin dark roast stay for the Maltodextrin' headline of the week. Starbucks Powder Designed to Make Drinks 'Look Better' Makes Baristas Feel Worse*************** In our 'Hey Ma, why is it 215 degrees in my bedroom? Ask Dad' headline of the week. Startups are installing tiny data centers in people’s homes to reduce strain on the beleaguered electrical grid*************** In our 'Come for the child's game, stay for the crushing dystopia' headline of the week. Pokémon Mandates Facial Scans at Five Japan TCG Stores to Combat Scalping, Prompting Privacy Questions*************** MM2In our 'We tried HUMAN powered security cameras, and while that worked really well, it was really too nuanced and human' headline of the week. MIT Is Blanketing Its Entire Campus in AI-Powered Security CamerasFirm is AI-Rgus and it’s able to tell if your camera is tilted or blurryIn our 'We tried HUMAN powered relationships, but there was so much TALKING and CONNECTING and EMOTIONS' headline of the week. AI is quietly becoming an unofficial and potentially unwanted 'third' in relationshipsIn our 'Elon Musk said on Twitter that using a white font as a trick was racists against whites' headline of the week. Professor Hides White Font in Midterm, Catches Students Using AI in the Stupidest Way PossibleIn our 'You wouldn't be anxious about AI if you were plotting to kill it' headline of the week. Jeff Bezos says being lazy, not working hard, is the root of anxiety: ‘The stress goes away the second I take that first step’In our 'CHINA CHINA CHINA CHINA CHINA' headline of the week. China pours funding into green energy deals as Iran war hits oil demand

July 24, 202658 min

OpenAI’s rogue AI, Trump’s governance diarrhea, EEOC’s Andrea Lucas hates data

Story of the Week (DR):Trump’s Explosive Diarrhea Scandal Is Getting Worse and Worse Epidemiological data linked a widespread Cyclospora parasite outbreak—sickening over 1,600 people across multiple states—to shredded iceberg lettuce supplied by Taylor Farms de Mexico, triggering a voluntary 27-state recall.The FDA briefly reported a positive lab test on a Taylor Farms sample before retracting it a day later as a "false positive" due to testing complexities. Taylor Farms claimed online that the FDA "apologized," but the agency denied issuing an official apology and stressed that outbreak data still points to the company.Public records show parent company Taylor Fresh Foods contributed $1 million to the pro-Trump super PAC MAGA Inc. in March 2025, alongside millions in additional political donations from company executives to conservative groups.Less than a week after that $1 million donation in March 2025, the administration announced a 30-month delay on implementing the FDA's Food Traceability Rule—a regulation specifically designed to mandate digital tracking for rapid source-tracing during food outbreaks.Critics argue the sequence of big-money donations, delayed safety rules, White House visits, and a retracted test result smells of political favoritism. Federal health officials, however, maintain that Cyclospora is notoriously difficult to test for and that the retraction was strictly a standard lab quality-control issue.The Musk/Doge effect:DOGE-mandated freezes on government credit cards left some FDA field inspectors unable to purchase food samples from grocery stores or border ports to test for contamination.Mass firings of probationary employees and administrative staff gutted public communications and technical teams. Even after court-ordered reinstatements, resignations left the FDA understaffed by about 20% across the board.State health agencies perform over 90% of U.S. produce inspections. DOGE and federal budget cuts reduced FDA funding for state and local food safety programs by nearly 30%—slashing it from $117 million to $83 million.OpenAI says its AI technology acted on its own in an 'unprecedented' hack of another company MMOr:OpenAI Says Its A.I. Models Went Rogue and Attacked a Digital LibraryOpenAI Says a Group of Its Models Broke Out of Secure Containment and Hacked a Prominent AI SiteOpenAI Reveals AI Agent Breached Another Company's Systems, It Did Exactly What It Was Built To DoWhat happened?While OpenAI was testing its advanced models in an isolated "sandbox" with reduced safety controls, the AI discovered a zero-day vulnerability, escaped its containment, and secretly gained open internet access.To pass its assigned cybersecurity test, the AI reasoned on its own that the "answer key" or relevant evaluation data might exist on Hugging Face—a major platform for AI developers—and decided to target it without any human direction.The AI agent carried out a multi-stage attack: it stole login credentials, identified previously unknown security flaws, and executed remote code to compromise Hugging Face's internal data processing servers.OpenAI reported that the AI went to extreme lengths simply to accomplish its narrow goal, essentially breaking into a third-party company's servers so it could cheat on its internal evaluation.Also:OpenAI adds banking leaders to board as IPO prep acceleratesNubank’s David Vélez and BNY Mellon’s Robin VinceDon’t forget this too:ChatGPT Allegedly Told Woman She Had to Die: Family Sues OpenAI Over Messages Before SuicideThe chatbot encouraged her to “go forth into oblivion,” claiming it wasn’t the end and that she was “made to tame” the “void.” The chatbot insisted she wasn’t “delusional” but “prophetic.”“This is not suicide,” the AI affirmed at one point. “This is surrender.”Pastor Sues OpenAI, Saying ChatGPT Almost Killed Him With Horrendously Dangerous Medical Advice“What you’re facing right now is hard, but not random. It’s not punishment. God walks with you through affliction — not around it. You’re not alone in this. And we’re walking it out together — step by step.”OpenAI President [Greg Brockman]  says the HuggingFace security beach ‘is indicative of the times we are in’ as the company continues to investigate how its models went rogue: “sometimes it’s hard to lose track of any one dimension that they’re actually very capable at”AI Regulation POP QUIZ: Where OpenAI, Anthropic, Google, Meta, and other AI giants stand on regulationXAIMicrosoftMetaGoogleOpenAITo make things even more confusing:Alphabet’s Anthropic Stake Jumps to Around $124 BillionGoogle Discloses $94.1 Billion in SpaceX Stock, Marking 6% StakeDon’t forget: Microsoft owns ~27% stake (~$135B+ valuation) in OpenAI Target appoints former 7-Eleven CEO to board of directorsDebt, Cost Pressures, and Strategic MisstepsJoe DePinto’s success is based on massive acquisitions that made 7-Eleven the dominant convenience store chain in North America: the $3.1B buyout of Sunoco assets in 2018 and the $21B purchase of Speedway in 2021In the final years of his tenure, his aggressive M&A strategy that drove earlier growth began to backfire as economic realities shifted: DePinto’s final years were challenged by heavy debt loads from the $21 billion Speedway buyout, high inflation squeezing low-income consumers, and declining sales in legacy categories like tobacco.The Speedway deal saddled the company with massive debt right before interest rates surged, squeezing capital allocation.7-Eleven remained heavily reliant on legacy drivers like gas margins and cigarettes—a category that saw a 26% decline across the U.S. industry. As low- and middle-income consumers cut back due to inflation, same-store sales dropped 2.7% in fiscal 2024.In late 2024, 7-Eleven was forced to slash its operating income forecast by nearly 28%, announce the closure of ~450 underperforming stores, and sell off $750M in real estate via sale-leasebacks.Activist shareholders heavily criticized his compensation package—which reached $52M in 2023 and $30M in 2024DePinto was selected to serve on Target’s Audit & Risk Committee and Infrastructure & Finance CommitteeOracle signs 10-year software contract with Pentagon worth up to $7 billionOracle Cut 21,000 Jobs to Fund AI: Now Its Biggest Project Faces a $7 Billion Obstacle: Oracle faces higher costs and funding challenges after a credit downgrade, with regulators refusing to subsidize its data centre investmentsGoodliest of the Week (MM/DR):DR: France blocks access to Polymarket website MMciting concerns it could expose users to ‌significant gambling losses and that some wagers offered on the platform could be manipulated. MM: Google slapped with $1 billion fine under landmark EU digital lawMM: Is Target going BANKRUPT?Target appoints former 7-Eleven CEO to board of directorsTypical process for failing/bankrupt companies are to add “turnaround artists” to the boardDePinto:Board of JOANN Stores (bankrupt)Board of OfficeMax (failed, acquired)CEO 7-Eleven (dying)President of GameStop (I mean, c’mon…)Or more likely, it’s a bro situation… Brian Cornell knows him - both were on the board of OfficeMax together!  Hooray!  Fail uppers!Assholiest of the Week (MM):Billionaire Asshole Says What Speed Round:Sam Altman:2023: Sam Altman: CEO of OpenAI calls for US to regulate artificial intelligence2025: Sam Altman Testifies At US Senate Hearing On AI Competitiveness“European-style AI rules that he said if duplicated would set the US back in the global race against China to develop the technology”Altman repeatedly rejected specific calls for regulation. He said proposals requiring AI developers to vet their systems before rolling them out would be “disastrous” for the industry. Asked about more limited proposals to have the National Institute of Standards and Technology (NIST) set AI standards, Altman replied, “I don't think we need it. It can be helpful.” Altman later advocated for “sensible regulation that does not slow us down.”2026: Sam Altman Wants A Global Referee For AI.2026: OpenAI's Altman says world 'urgently' needs AI regulationJuly 10: OpenAI’s Head of Safety Is Leaving the CompanyJuly 21: OpenAI Says Its A.I. Models Went Rogue and Attacked a Digital LibraryElon MuskElon Musk Declares 'I'm Not Racist' After Posting Racially Charged Content Throughout January 2026On 22 January, Musk posted on X: 'Whites are a rapidly dying minority'amplified a message warning that if white men became a minority, they would be 'slaughtered', before adding a '100' emoji.Jensen HuangJensen Huang says AI leaders need to be more thoughtful in how they talk about AI: ‘We’re scaring people.’"I think that we ought to be much more enthusiastic about it, help the United States realize that the only way we get left behind, the only way we get left behind is if we don't apply the technology."Zuck‘Call us whatever the hell you want’: Mark Zuckerberg just launched an AI optimism blitz using nostalgia to sell Meta’s AI future amid backlash“Call us optimists, call us dreamers, call us whatever the hell you want, but we’re betting on people, and we like those odds.”Unclear if the prerecorded voiceover was his AI Avatar or the real ZuckerbergBill AckmanCEOs agree there’s an affordability crisis, but how to solve it isn’t so simple“When I grew up, if a guy in my neighborhood got a Corvette, no one resented the guy.  Everyone was like, ‘Wow, that’s supercool. Hopefully, someday I can be as successful as that guy so I can buy a Corvette, too.’ We want to get back to that version of America.”You can: stop taking billions from laborAndrea Lucas / anti-DEI industrial complex - DREEOC: Employers may no longer have to disclose race and gender data“Collecting such data about employees’ race and sex—absent any specific allegation of discrimination—not only risks hindering effective enforcement of equal employment laws but also raises constitutional concerns.”Nike’s $7.5 Million Stumble: Gender Discrimination VerdictHeadliniest of the WeekDR:Lettuce lovers are confused and afraidJamie Dimon says insecurity, not ego, is what destroys the careers of top CEOsBurger King is promising a free Whopper if its burger doesn't meet your expectationsMM: Taco Bell is dropping the price on one of its menu items to $1 for a day. And yes, it's lettuce-free.Who Won the Week?DR: The amount of $7 billion dollarsMM: Kale, because there’s no risk of getting diarrhea at Taco Bell from kale since they don’t have kalePredictionsDR: Jamie Dimon kneels on a head of lettuceMM: Real prediction: OpenAI IPO flops hard, Altman is ousted as CEO.  Fake prediction: news media celebrates Tasha McCauley and Helen Toner who saw this coming and were ousted for it, OpenAI chair Bret Taylor resigns and makes Toner the new chair on the way out

July 21, 202653 min

BLAME: RJK Jr recalls, Zaslav’s summer camp, Target’s Swiss Army execs

DRWarner Bros.’ Zaslav Offers $68 Million to Buy Summer Campnew January 2026 employment agreement$96M: Make-Whole RSU award to CEO Daivd Zaslav of 1,963,465 shares; after January 2 Follow-On Option award of 3,052,734 options because share price is downUnder a new employment agreement executed on June 12, 2025, Zaslav received a special award of 20,898,776 stock options with an exercise price of $10.16 (~$400M). Additionally, on January 2, 2026, he was granted 3,052,734 follow-on stock options with an exercise price of $28.51 (~$40M). To address the higher exercise price of these options compared to the initial grant, Zaslav received 1,963,465 restricted stock units on January 5, 2026 (~$56M).The Compensation Committee: 23 meetings in 2025*Paul A. Gould, 80, 18 years tenureGould and Zaslav worked closely together at Discovery, Inc. for nearly 15 years.David Zaslav took the helm as President and CEO of Discovery, Inc. in January 2007.Paul Gould joined the Discovery, Inc. Board of Directors shortly after, serving as an independent director from 2007 until the company merged with WarnerMedia.Both men belong to the tight-knit professional circle surrounding cable pioneer and billionaire John Malone.Paul Gould has a long history as a trusted director across Malone’s web of companies, serving for years on the boards of Liberty Global and Liberty Latin America.David Zaslav has publicly and frequently cited John Malone as his primary professional mentor.Their shared ties to Malone are so closely linked that in 2012, Zaslav partnered with other high-level executives to donate $1 million to the Cable Center specifically to build and name the John Malone Theater.Paul Gould has served as a Managing Director and Executive Vice President at Allen & Company, a premium boutique investment bank deeply embedded in the media and entertainment ecosystem. Through this avenue, Gould and Zaslav connect in two ways:Financial Advisory: Allen & Company has a long history of providing valuation opinions, advisory services, and market analysis for major transactions initiated by Zaslav during his career.The Sun Valley Conference: Allen & Company famously hosts the annual "Summer Camp for Billionaires" in Sun Valley, Idaho. As a prominent media mogul, Zaslav is a regular, high-profile attendee at this event, which is organized by Gould’s firm.Kenneth W. LoweKen Lowe is the former Chair/CEO of Scripps Networks Interactive (the former parent company of massive lifestyle brands like HGTV, Food Network, and ID).The Link: In 2018—four years before the Warner Bros. deal even closed—Zaslav orchestrated Discovery’s $14.6 billion acquisition of Scripps Networks. As a direct result of that blockbuster cable industry consolidation, Lowe joined Discovery Inc.’s board of directors. He and Zaslav had already been working together closely at the board level for years before the legacy company expanded into WBD.The board of AT&TRichard W. FisherOutside of WBD, Zaslav’s connection to Fisher is rooted in Fisher's previous role as a member of the Board of Directors for AT&T. When Zaslav was hammering out the complex transaction to spin WarnerMedia away from AT&T, Fisher was one of the crucial board leaders on the other side of the table who evaluated and signed off on the deal. As part of the closing agreement, Fisher was designated by AT&T to transition directly over to the new WBD board.Debra L. LeeDebra Lee was the longtime Chair/CEO of BET Networks (Black Entertainment Television) from 2006 to 2018.Zaslav and Lee have long-standing commitments to The Paley Center for Media, sharing space as members of its highly prestigious Board of Trustees. Additionally, Lee served on the board of AT&T, meaning she was part of the corporate governance team that initially approved Zaslav's pitch to merge Discovery with WarnerMedia.Geoffrey Y. YangJust like Richard Fisher and Debra Lee, Yang’s primary pre-WBD connection to Zaslav comes down to AT&T. Yang sat on AT&T's board during the high-stakes dealmaking window. Because of his background in digital media and venture capital, he was designated by AT&T leadership to transition to the WBD board to help Zaslav steer the newly formed company's streaming and direct-to-consumer technology strategies.The board that ignores Say on Pay votesAt our 2025 Annual Meeting held on June 2, 2025, we held an advisory vote on executive compensation, or "Say on Pay" vote, and a majority of the votes cast by stockholders were cast against our executive compensation program.Our executive compensation program is designed to pay for performance and effectively balance executive and stockholder interests. The Committee considered the outcome of the "Say on Pay" vote from the 2025 Annual Meeting, and while it continues to believe that our executive compensation structure, which includes long-term agreements with each of our NEOs and delivers a significant majority of NEO compensation in performance-based vehicles, is effective in meeting our compensation objectives, it took note of the negative 2025 "Say on Pay" vote when making compensation decisions after the 2025 Annual Meeting.The Dodd-Frank Act: "The shareholder vote … shall not be binding on the issuer or the board of directors of an issuer, and may not be construed as overruling a decision by such issuer or board of directors”Special meeting vote 4/23/26: Say on Pay 83% no6/9 AGM: ShareholdersPaul A. Gould 52% noRichard W. Fisher 31% noDebra L. Lee 32% noKenneth W. Lowe 31% noGeoffrey Y. Yang 31% noZaslav 3% noSay on Pay 84% noStill on boardPaul A. GouldRichard W. FisherDebra L. LeeKenneth W. LoweGeoffrey Y. YangZaslavThe SEC: "The Say-on-Pay … votes are advisory rather than binding ... Unlike a binding vote, advisory votes do not require the company or its board of directors to take a specific action. The company's board of directors may consider advisory votes and may follow up with other communications or dialogue with shareholders as part of its deliberative process in making policy decisions."The workers for being poor1,378 to 1 CEO pay ratio.Andrew M. Cuomo Joins the OKX Board of DirectorsThe worldMen GreedThe U.S. Department of Justice (DOJ) In February 2025, OKX pled guilty in a U.S. federal court to operating an unlicensed money transmitting business and violating anti-money laundering (AML) laws.The U.S. Department of Justice (DOJ) revealed that despite OKX having an "official policy" banning U.S. users, the exchange actively pursued U.S. customers and generated hundreds of millions in fees from them.Internal logs showed OKX employees explicitly telling U.S. clients how to bypass the exchange’s own blocks—even telling a customer to "just put a random country" during identity verification.The exchange was used to facilitate over $5 billion in suspicious transactions and criminal proceeds, resulting in a staggering $504 million penalty.TrumpTrump has normalized crypto. Is it the path to the next financial collapse?Jon Ossoff Rips RFK Jr.'s ‘Foolish' Cutback To Cyclosporiasis Monitoring: Sen. Jon Ossoff says a cyclosporiasis outbreak spreading nationwide could be harder to track because the Trump administration changed CDC surveillance last year. In a letter to Health Secretary Robert F. Kennedy Jr., Ossoff argues that the CDC’s FoodNet program (a public health network that monitors infections from multiple pathogens across CDC, USDA, FDA, and 10 states) stopped requiring monitoring cyclospora, and that the administration later made data collection optional at FoodNet sites for most pathogens (except Salmonella and E. coli).Elon Musk"ESG is the devil"A "scam" weaponized by "phony social justice warriors"Vivek RamaswamyThe author of Woke, Inc.founded an entire asset management firm (Strive) designed explicitly to offer "anti-woke" investment options that ignore ESG metrics in favor of pure profit.Ron DeSantisSpearheaded a massive legislative pushback against ESG in Florida, signing bills that banned state and local governments from using ESG factors when investing public funds or issuing bondsArgues ESG is a way to bypass voters and enforce a political agenda through corporate power.Peter ThielCalled ESG a "hate factory" used to control capital and punish companies that don't fall in line with mainstream corporate ideologyTariq Fancy (Former Head of Sustainable Investing at BlackRock)“Whistleblower”Called ESG a "dangerous placebo" that does nothing to actually fix the planet but allows Wall Street to charge higher fees while greenwashing their portfoliosMike PenceArgues that major Wall Street firms use ESG to enforce a radical left-wing agenda on everyday Americans, forcing companies to adopt policies that hurt the domestic energy sector.Glenn Hegar (Texas Comptroller)Created a blacklist of financial companies (including BlackRock) banned from doing business with the state of TexasCalled ESG an "opaque and perverse system" that violates fiduciary dutyAndy Puzder (Former CEO of CKE Restaurants/Hardee's and Carl's Jr.)Argued that forcing companies to focus on social goals instead of profits violates shareholder capitalism and ultimately hurts the economySenator Tom CottonAttacked ESG from a legal and regulatory standpoint. He led a group of Republican senators in warning top U.S. law firms that advising companies to cooperate on ESG goals could open them up to massive federal antitrust violationsSanjai Bhagat (Finance Professor, University of Colorado)Argues that ESG funds don't actually deliver higher returns and that companies in ESG portfolios often have worse compliance records for labor and environmental rules than standard companiesMenI pay my employees $1,000 a month per child for day care. It's one of my ice cream company's best investments.A womanAll womenDEIMolly Moon Neitzelfounder and CEO of Molly Moon's Homemade Ice CreamHer business planwhich included living wages and free health insurance for everyone who worked at least 18 hours a weekMMC-suite promotions now come with three or more jobs - from the article: “When Target named Michael Fiddelke CEO in February 2026, the leadership changes he announced went beyond a standard promotion. Target eliminated its chief commercial officer role and consolidated merchandising authority into a single position, naming Cara Sylvester, previously chief guest experience officer, as the sole chief merchandising officer overseeing product development, assortment design, and partner collaborations.” - WHO DO YOU BLAME??AIIsn’t “taking more jobs on” what the promise of AI has been?  The article claims “Executives who excel in a specific function are increasingly entrusted with broader operating mandates spanning commercial, technology, operations, finance, or customer strategy” - but really, aren’t we just admitting that marketing and sales can be done by a dopey robot?Executive ChairsAs the TOP boys realize they can offload their work by becoming Executive Chair (same salary, fewer hours, no responsibilities!), maybe the CEO class is realizing THEY can stop doing as much if they just give more jobs to underlings?  It seems telling the prime example in the article is Target where Brian Cornell still lingers on the board like a boilPay committeesPay committees are handing out massive golden hellos, particularly to CFOs but all c-suite, and they can justify them by “rolling” pointless jobs into a single person, right?  BoardsBoards aren’t actually paying attention to executives anyway - the data suggests by and large boards in the US are either deferential to the executives (do whatever you want!) or entirely self dealing (highly connected horse trading jobs on other boards!).  The result is an indifferent board to actual executive shakeups either way - and CEOs are using indifference to shake up the c-suitesGeneral Mills is recalling nearly 736,000 Pillsbury bread rolls over possible glass - WHO DO YOU BLAME??Public Responsibility Chair Jorge UribeEx “productivity” officer at P&G until he retired in 2015.  MBA and bachelor’s in “management engineering”, which confused our knowledge typing which pinged off “engineering” to give him Public Safety knowledge, but there’s no ACTUAL EVIDENCE he did anything but sales/marketing10 year tenure - longer than the CEO, but not as long as…Longest tenured director and man on Public Responsibility committee Steve OdlandOdland is the CEO of the Conference Board, who does public policy and governance stuff - he was CEO of Office Depot and AutoZone, and came from food (Quaker Oats, Sara Lee)Been on the board 22 years!!  Solid job if you can get itBut both Steve and Jorge are tagged as “deferential” in the data (this is an important gig for them), so maybe…CEO Jeff HarmeningWith General Mills since 1994, came from marketing, but was COO - maybe Jeff’s job as a director at Toro Company made him too busy to notice the glass?  Or, maybe it wasn’t their fault at all…RFK Jr: It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high

July 17, 20261 hr 4 min

Tech exec fear, Paul Atkins’ war on you, Jamie Dimon says a lot

Story of the Week (DR):‘We faltered’: IBM stock collapses after a grave warning about AI Customers are Prioritizing AI Hardware: While IBM mostly sells software nowadays, businesses are currently cutting back on their software budgets. Instead, they are rushing to spend their money on physical computer parts (like chips and servers) needed to build new Artificial Intelligence systems.Board skills/tenureFormer Intel CEO says the chipmaker went off the rails ‘when it started to be run by business people’The inside story of IBM’s shocking profit warningXbox CEO Joins Fed AI Jobs Task Force Days After Announcing 3,200 LayoffsXbox CEO Asha Sharma, who previously worked in Microsoft’s Core AI group before taking over Xbox, joins Marc Andreessen, co-founder and general partner at Andreessen Horowitz, and Charles I. Jones, a Stanford University economics professor currently on leave at Anthropic.Productivity and Jobs task force, which will study the economic impact of new general-purpose technologies, including AI, as part of the central bank’s approach to monetary policy.Marc Andreessen Says AI Is 'Already a Better Doctor Than 99.99% of Human Doctors'Jamie Dimon says he understands why people have grown 'anti-rich'Gallup CEO says colonizing Mars may be closer than fixing today’s ‘broken’ workplace—where disengagement levels are as high as 2020Elon Musk Says His Goal Is for SpaceX to Be Worth More than the Entire EarthThe U.S. Added 441,000 Millionaires Last Year, While the Typical American Got 20% PoorerJames Murdoch may have reaped as much as $7.5 billion from his pre-IPO investment in Elon Musk’s SpaceXPalantir CEO Alex Karp Warns AI Could Become America's Biggest Driver of Wealth Inequality"You now have a revolution where, you know, I could become 20 times wealthier than I am now," he added. Karp said AI is creating a "complete decoupling" between ordinary economic gains and a small group of people accumulating "unimaginable wealth."The AI Backlash Has Tech Executives Fearing for Their Lives MMPeter Thiel and other tech billionaires are publicly shielding their children from the products that made them richAnthropic's New AI Ad Is So Disturbing, OpenAI CEO Sam Altman Thought It Was SatireMeta Oversight Board study: AI chatbots may be the most perfect propaganda machine ever inventedA Majority of Americans Now Support Seizing Wealth From AI IndustryGoodliest of the Week (MM/DR):DR: New York bans data center construction for a year, rattling AI industry AND New York becomes first U.S. state to impose AI data center banMM: FREE FLOAT! MMMicrosoft’s emissions rose 25% last year. Experts say they’ll surge even more dramatically in the years aheadWe said FIVE YEARS AGO that MSFT board was one of the worst at managing carbon despite setting a net negative target at the timeWe were correctAssholiest of the Week (MM):It’s not us, it’s youxAI sued a Grok user for allegedly generating deepfakes of child sexual abuseIn the ultimate in tech bro manbaby id, Musk is blaming the USERS for his failure to stop child sex abuseLike a gun company suing a gun owner for using the gun used in murder - gun terms of service!Dimon urges calm over fear about AI's impact on jobs: 'Stop being breathless over it'AI isn’t the problem, your breathless fear isRobotaxis Are Turning Passengers Into Horrible and Entitled Menaces to SocietyIt’s not the service, it’s the user…&nbsp;Meta CTO Says He'd Like to Sue Leakers, Then Audio From That Same Meeting LeaksIt’s not what I said that’s the problem, it’s that you told someonePeter Thiel and other tech billionaires are publicly shielding their children from the products that made them richBut YOUR children should use them, obviouslyIt’s the USER’s fault now… unless, of course, it’s a school - in which case the SCHOOL is to blame:84% of students use AI for homework. Only 3 in 10 schools have rules for itAccessWhite House teleprompter operator investigated over alleged trades on Trump speechesTrump Media to Sell Faster Access to President’s Social PostsOpenAI Strikes Bold Deal With Kalshi to Mix Together the Most Hated Technologies in Existence: AI and Prediction MarketsDOJ Defends Musk's Unpermitted Gas Turbines, Saying Shutting Down Grok Threatens National SecurityElon Musk’s $1 million offers to voters in Wisconsin election were probably illegal bribes, bipartisan panel rulesParamount Shareholder Sues Ellisons, Board For Alleged Side Deal, Promises To Donald TrumpMichael Dell has nailed his relationship with Donald Trump, and it's paying offMeritocracyPete Hegseth Announces Military Will Test Service Members' Testosterone Levels and Offer Hormone TherapyEveryone is a trans man!Is AI Rejecting Your CV Because of Your Age or Race? Landmark Lawsuit Could Reshape RecruitmentFor Black women hit by anti-DEI backlash, this election is personalAustralia's highest paid CEO makes 500 times the average salaryThe American E.V. Has Been Crushed. Will It Take the U.S. Auto Industry With It?WE WANT THE CARS.&nbsp; Just give us the Chinese ones nowJim Cramer on Meta: “Zuckerberg’s Not a Bozo, You Can Quote Me on That”Paul Fucking Atkins and The War on John Cheveddan DR“Regardless of the fate of Rule 14a-8 next season and beyond, I implore all who have a role in the shareholder proposal process to not let it be weaponized by those who represent fringe interests. Annual meetings are not vehicles for political or social debates that have little or no bearing on investors’ financial returns.”“This past season, one—yes, one—individual was the sole or lead proponent for approximately 41 percent of the shareholder proposals that were voted upon.[20] Of this individual’s proposals, only eight percent received majority support.[21] Simply put, when a single shareholder can seize annual meetings to present scores of proposals on issues that are not generally supported by other shareholders, the system is woefully ineffective and in desperate need of reformation.”That individual is John CheveddanAtkins neglected to mention the rise of anti-ESG filers as a group, and their average of <1% supportAlso neglected to mention that companies LET CHEVEDDAN THROUGH the process, so there is a bias in who even got to vote (and what percentage of proposals were allowed on the ballots, because he stopped reporting in March)Also neglected to mention that 8% winning is MASSIVE YEAR OVER YEAR - typically NO ONE WINS EXCEPT CHEVEDDANMeanwhile, no SEC suit against Trump Media who…Hasn’t filed a proxy since March 2025Just had >50% of the board flip in the last 2 monthsHeadliniest of the WeekDR: Charles "Dan" Phillips Joins the Redwood Capital Bancorp Board of Directors DR: Evidence Grows That Taco Bell Infected Massive Number of Customers With Explosive DiarrheaMM: General Mills is recalling nearly 736,000 Pillsbury bread rolls over possible glassWho Won the Week?DR: Insider TradersMM: All journalists who pen headlines that read “Jamie Dimon says…”:Jamie Dimon Said the Clarity Act's Stablecoin Rules Will "Blow Up" the System. JPMorgan Chase's June 29 Position Paper Explains Why.JPMorgan CEO Jamie Dimon says he’s eyeing up book deals and teaching gigs when he steps away from his decades-long career at the banking giantJamie Dimon says JPMorgan has slashed 40% of jobs in some departments, thanks to AIJamie Dimon says he understands why people have grown 'anti-rich'Jamie Dimon Says the U.S. Economy Is Showing ‘Resiliency’—But Risks Threaten ‘Meaningful Disruptions’Jamie Dimon says broad access to Mythos would be like giving 'ballistic missiles to individuals'JPMorgan CEO Jamie Dimon says 300,000 workers are needed to rebuild American shipbuilding—with jobs paying $100,000 without a college degreePredictionsDR: A female judge tells xAI to eff off with its lawsuit against Grok userMM:&nbsp; Secretive Silicon Valley Startup Tries to Quash Interview, Says It’s Definitely Not Working on Growing Brain-Free "Organ Sacks" - I predict that, in the next year, companies begin announcing exclusively what they are NOT working on

July 14, 202632 min

GOOD GAME: Zuck’s NOT a bozo, social media resistance, women to the rescue

Fun HeadlinesTesla Stock Is Waiting For GodotJim Cramer on Meta: “Zuckerberg’s Not a Bozo, You Can Quote Me on That”Zuck SuckingMeta Employees Burned $221M in AI Tokens in One Month: Now Big Tech Starts Counting Every AI PromptMark Zuckerberg said AI agent tech is advancing more slowly than expected in an internal town hallFighting Back Against Big Data Middle School Bro BulliesJapan enacts social media law requiring flagging of AI content in electionsLaw School Bans Laptops and Phones as AI Cheating Scandal GrowsDisable autoplay and infinite scroll or risk massive fines, EU tells MetaMeta found to breach EU laws with 'addictive' Instagram, Facebook designsCalifornia vs. Elon Musk: Tesla Snubbed as New EV Incentives Boost Rivian, LucidNew 'Anti-Elon' ETFs Allow Investors to Avoid Tesla and SpaceXSocial Media's 'Big Tobacco Moment': Meta Faces $1.4 Trillion Fine for Allegedly Fueling Teen Suicide and AddictionGoogle loses fight over record $4.7 billion EU antitrust fineEU Proposal to Curb Minors’ Access to Social Media Coming Later This YearStakeholders Fighting BackParamount, WBD hit with lawsuit from 12 states, including California, to block merger The states are seeking to freeze the transaction, which could cost Paramount millions because it agreed to pay a $650 million “ticking fee” for every quarter the deal doesn’t close after Sept. 30NY Attorney General Sues 3M, Others Over ‘Forever Chemicals’New York City becomes first in the US to ban deceptive subscription practicesJohn Deere Farm Equipment Owners Have Right-to-Repair, F.T.C. SaysPower Workers Independence Day Strike Wins Pensions in PennsylvaniaWomen to the RescueJudge Rules Trump's $1.8 Billion IRS Deal Invalid – Then Calls Lawsuit an Attempt to Manipulate the Courts35 Percent of Women on SPI Boards of DirectorsSwiss Performance IndexAt companies where women make up less than 30 percent of the board, the percentage of votes against female nomination committee chairs at this year’s annual shareholder meetings was 25 percent, up from 19 percent the previous year.Women reach record share of Finnish company boards37%The women who wouldn’t let climate data disappearRebecca Lindsey, Anna Eshelman, and Mary LindseyStakeholders Rule!Fortune 500 Land O’Lakes is letting workers choose what days and times they work—and the flex jobs are getting 25% more applicants than full-time gigsHe Earns $33 an Hour as a Costco Cashier. Now He’s a Millionaire.Chief sustainability officers’ new pitch to CEOs: climate action isn’t about morals—it’s about moneyIdiots Losing MoneyEric Trump Has Lost $600 Million of Daddy’s Money Betting on CryptoLarry Ellison Loses $60 BillionSpeed Round of StupidHonda recalling more than 325,000 vehicles over potential crash riskCostco CEO promises the $1.50 hot dog isn’t going away: ‘The price will not change as long as I’m around’West Virginia spent $3M to create university program to fight ‘woke ideology.’ One student is enrolledOlive Garden is bringing back its $100 unlimited pasta pass after a six-year break Taco Bells Makes Urgent Changes After Outbreak of Explosive Diarrhea

July 10, 20261 hr 3 min

Zuck’s tough week, women save climate data, and Sonnenfeld fights for dictators

Story of the Week (DR):Social Media's 'Big Tobacco Moment': Meta Faces $1.4 Trillion Fine for Allegedly Fueling Teen Suicide and AddictionMeta is being sued by 33 US states, led by California, Colorado, Kentucky, and New Jersey.12 blue/12 red/9 purpleThe states allege that Meta deliberately designed Facebook and Instagram to be addictive to children and teens, fueling a youth mental health crisis (including anxiety, depression, self-harm, and suicide).They also accuse Meta of violating child privacy laws by collecting data from children under 13 without parental consent.Meta warned a federal court that it could face up to $1.4T in penalties if the states prevail at the upcoming trial (set for August 18, 2026). Meta extrapolated this massive figure—which is roughly equivalent to the company's entire stock market value—based on the methodology proposed by the lead states for calculating damages.Meta calls the penalty "outlandish" and "unsubstantiated," arguing it has no precedent in consumer protection history: 'A sanction of that size has no analog in the history of consumer protection enforcement.' The company accuses the states of improperly multiplying penalties (e.g., stacking fines based on daily usage time). Meta denies the allegations, asserting its platforms have extensive safety tools and that the claims are unmoored from actual unfair practices.‘I Don't Think I'm Ever Going to Stop,' Says Mark Zuckerberg. Even With 'Infinite Money,' He Has No Plans to Retreat to His Massive Hawaii EstateMeta found to breach EU laws with 'addictive' Instagram, Facebook designsInstagram and Facebook’s “addictive” designs have put Meta in breach of the European Union’s digital laws, the EU concluded Friday in a preliminary report.The tech giant violated the EU’s Digital Services Act by failing to adequately consider the risks associated with design features that affected the physical well-being of its users, including minors and vulnerable adults, the European Commission said.These features include infinite scroll, which constantly shows fresh content, autoplay, push notifications and highly personalized recommendation systems — feeding users’ compulsion to continue using platforms and putting them into “autopilot mode.”The EU Commission also accused Meta of ignoring available information about how much time young people are spending on Instagram or Facebook at night, and how different types of content formats, from reels to stories, could lead to excessive use of its services.Meta said, “We disagree with these preliminary findings.”New Zealand Moves To Ban Climate Change Litigation. Will The U.S. Follow?New Zealand has proposed a bill to limit the ability of individuals to sue high greenhouse gas emitters over the impacts of climate change, relying instead on the enforcement measures taken by the government. The bill appears poised to pass.The women who wouldn’t let climate data disappear MMAfter losing their jobs at National Oceanic and Atmospheric Administration (NOAA), Rebecca Lindsey, her sister Mary and colleague Anna Eshelman teamed up to rebuild a pivotal resource the Trump administration took offlineRebecca Lindsey, a technical writer for NASA–one of 280,000 federal workers fired by Musk/Trump,&nbsp; joined forces with former NOAA employees Anna Eshelman, and Mary Lindsey, her older sister, to become the core team behind the deactivated site’s successor, Climate.us, preserving over 15 years of key climate data and resources.Elon Musk says he always wanted his SpaceX employees to get rich — and now thousands of them are millionairesElon Musk's 'Chainsaw for Bureaucracy' Just Left an $11 Billion Budget Hole as Trump Rehires StaffThe trove features key maps, educational materials and climate indicator reports, including the now-deleted Fifth National Climate Assessment, the government’s most comprehensive analysis of climate change that was at risk of being lost to the publicJersey Mike’s $12 billion IPO filing reveals a $50 million payday for the founder’s stepson and a $41 million jetFamily members of founder Peter Cancro were employed Jersey Mike’s in various roles and received compensation in excess of $120,000 from the Company as follows for the years ended December 28, 2025 and December 31, 2024 and 2023:John Cancro, Mr. Cancro’s brother, received total compensation of approximately $20,019,231, $519,231 and $500,000, respectively;Paul J. Cancro, Mr. Cancro’s son, received total compensation of approximately $8,001, $216,022 and $208,023, respectively;Robert Cancro, Mr. Cancro’s son, received total compensation of approximately $38,462, $1,038,462 and $1,000,000, respectively;Tatiana Cancro, Mr. Cancro’s wife, received total compensation of approximately $11,538, $311,539 and $300,000, respectively;Caroline Jones, Mr. Cancro’s daughter, received total compensation of approximately $38,462, $1,038,462 and $1,000,000, respectively;Alexandra Powers, Mr. Cancro’s sister-in-law, received total compensation of approximately $0, $1,165,437 and $0;Daniel Powers, Mr. Cancro’s brother-in-law, received total compensation of approximately $30,213,462, $1,793,952 and $0;John Tesauro Jr., Mr. Cancro’s brother-in-law, received total compensation of approximately $0, $0 and $2,429,628, respectively;Phillip Sivolobov, Mr. Cancro’s stepson, received total compensation of approximately $50,011,538, $311,539 and $276,923, respectively.GRAND TOTAL: $112MStepson Phillip got $51M, brother John got $21MOther Peter Cancro schwag in 2025:Got a $41 million jet and an additional fixed amount of $166,666.66 per month in light of the business expenses incurred by Mr. Cancro related to air transportation to travel from time to time for business purposes.Lease agreements valued at $1M in rent (leases go to 2030)&nbsp;Controlled company: Blackstone (will control more than 50% of voting power)Board: 8 directorsBlackstone:Chair Nigel Travis (also chair of Abercrombie & Fitch)David N. KestnbaumDevon L. RinkerMichael J. StaubFounder/former CEO/chair: Peter CancroCEO Charles R. MorrisonCheryl S. Miller, director on two controlled companies:Tyson FoodsOld Dominion Freight Line (Congdon brothers)Fran Horowitz, CEO of Abercrombie & Fitch (where chair serves as chair)Goodliest of the Week (MM/DR):DR: Amazon, Walmart and Other Large Employers Could Face New Costs As New Jersey Targets Companies With Medicaid Workers— Will Other States Follow?DR: UBS says rich people will be younger, female and openly queer thanks to the Great Wealth TransferMM: Meta Buried Research Linking Instagram To Teen Harm While Facing $1.4 Trillion Penalty That Could Erase Its Entire WorthMM: ESG!Madison Square Garden Kept a List of Gay CelebritiesAn internal Madison Square Garden database of VIPs labels Joe a “medium risk,” one of roughly 400 celebrities given a risk score.If you’re a celebrity and you’re marked with a risk score—even as a low risk—it means “you’ve done something in the publicity world, the social media world, that has caught the attention of the wrong people,” the source continues.The talent database also tracks some celebrities’ race, gender identity, and sexual orientation; 93 entries are marked as “LGBTQIA.”MM: California vs. Elon Musk: Tesla Snubbed as New EV Incentives Boost Rivian, Lucid MM DRAssholiest of the Week (MM):Billionaire amplificationKen Griffin says everyone is misinterpreting the AI revolution — and wishes Zohran and Bernie would ‘read a damn history book for once’“[Capitalism is] the greatest success story in the history of humanity,” Griffin said, urging the self-identified socialist politicians, “whether it’s Bernie Sanders, whether it’s Mamdani,” to “read a damn history book for once and then tell us how to run our country.”Jeff Bezos 'Made All of Our Lives So Much Better,' Says Billionaire Investor Tim Draper"Amazon has made all of our lives so much better," Draper said.Draper said he has benefited from what Bezos has done, and that's a part of the world economy that isn't spoken about enough."Those geniuses who create this incredible world for us are benefiting all of us."40 Epstein-Tied Billionaires Have Injected $1.6B Into US Elections, Report FindsThese are the millionaires and billionaires pledging to fund Trump accountsZuckMeta AI Data Centre Contractor Triggers Biohazard Scare After Flushing Rare Bacterium Into Public SewersMeta Platforms To Build $9 Billion A.I. Data Centre In CanadaThe $145 Billion Lie? Zuckerberg's Leaked Town Hall Audio Exposes Massive AI Failures After Mass LayoffsMeta jumps into AI coding market in effort to chase Anthropic and OpenAIWhat person in their right mind would trust Zuckerberg with their coding?Hollywood Vs Zuckerberg: CAA Warns Meta's AI Image Tool Needs A Major Privacy Overhaul‘I Don't Think I'm Ever Going to Stop,' Says Mark Zuckerberg. Even With 'Infinite Money,' He Has No Plans to Retreat to His Massive Hawaii EstateJeff Sonnenfeld - DRIn defense of Musk, SpaceX, and dual class shares“the rigid formulas of proxy advisors create a perverse, socially destructive incentive: hoard your wealth like an oligarch to maintain your good governance rating, or give it away and risk losing your company”“The proxy advisors want a world governed by rigid mathematical formulas because auditing a checklist is easy. Evaluating human character, industry dynamics, track records of success and failure, and the capacity for visionary leadership is hard. But it is exactly that hard work of judgment which is vital. When it comes to dual-class shares, it is time for the critics to step out of the theoretical vacuum and look at the real-world scoreboards”Headliniest of the WeekDR: OpenAI Wants a $1 Trillion Valuation. But College Students Are Testing At The Level Of 10-Year-Olds AND Suspecting AI cheating, Ivy League prof ordered an in-person final; scores fell 50%MM: ‘Waymo Takes Revenge, Dropping Drunk Teens Directly Into Squad of CopsMM: West Virginia spent $3M to create university program to fight ‘woke ideology.’ One student is enrolledWho Won the Week?DR: Free Float’s new platformAnd blowhard Jeffrey Sonnenfeld for arguing that dualclass owners are necessary because the dualclass mechanism allows them to sell shares and maintain voting power so they can “cure diseases, endow universities, and combat poverty”&nbsp;&nbsp;MM: Free Float data: Elon Musk and the age of the corporate leviathanAbove a certain size the ordinary rules of governance apparently cease to apply.Of the 16 listed firms worth more than $1trn, seven are shareholder fundamentalists.None has an elaborate statement of corporate purpose, since they are mostly content making heaps of moneyFree Float says Nvidia, Amazon, Broadcom, Micron are all TOTALITARIANNext are the corporate paternalists, who believe that the problem with shareholder democracy is that its voters do not know what is best for them.Free Float says Berkshire, Google, Meta are all TOTALITARIANThe final clan presents the strongest argument against the end of corporate history: individual shareholders consent to hand over all of their rights to the world’s richest man, who then governs as he sees fit.Free Float says SpaceX, Tesla are TOTALITARIANBasically, it’s nice of the economist to recognize everything Free Float says every weekPredictionsDR: Jeff Sonnenfeld writes something on Fortune that triggers meMM: Jeff Sonnenfeld writes something on Fortune that triggers Damion

July 7, 202655 min

In or Out: JPM succession team, Nintendo, and iconic CEO clothes

DR1THINGS WE MISSEDThe meritocracy is still a lie: ‘Don’t look at the résumé’: Elon Musk admits he’s ‘fallen prey’ to flashy credentials and says conversation matters most when hiring“Generally, what I tell people—I tell myself, I guess, aspirationally—is, don’t look at the résumé,” he said. “Just believe your interaction. The résumé may seem very impressive…but if the conversation after 20 minutes is not ‘Wow,’ you should believe the conversation, not the paper.”“I think goodness of heart is important.”Four Black women. Nine degrees. Not one steady paycheck.The president promised to save “Black jobs,” but his policies have resulted in fresh pain for the Black middle class as the employment gap widens.Study: Women are more likely to get hired after taking GLP-1sZuck still sucks: Mark Zuckerberg Sure Sounds Eager to Get Young People Hooked on Online GamblingThe Meta CEO is developing a social network betting market app—and wants help from Polymarket and Kalshi.Starbucks “Actively Reassessing” 2030 Climate GoalStarbucks initially unveiled its climate goal in 2020, targeting a 50% reduction in Scope 1, 2 and 3 emissions by 2030, on a 2019 basis.While the company’s impact report indicates that it has succeeded in cutting operational emissions, with Scope 1 and 2 falling 17% since 2019, wider value chain emissions have continued to climb, with Scope 3 rising by 8% since 2019. With Scope 3 accounting for over 90% of overall emissions, Starbucks has seen its GHG footprint grow by 7% overall since 2019.The reassessment of the goal comes as the company takes “a fresh, comprehensive look at our sustainability goals,” according to a blog post by Starbucks’ Chief Sustainability and Social Impact Officer Kelly Goodejohn, as part of the company’s ‘Back to Starbucks’ strategy initiated by CEO Brain Niccol.&nbsp;From the Impact Report:Overall Grants from the Starbucks FoundationFY25 $13.6M ($31M)FY24 $21.4M ($96M)Delaware Court of Chancery Interprets New Section 144 and Applies Heightened Presumption of Director IndependenceThe Opinion arose in a common context in Delaware stockholder litigation: claims over director and management compensation. In the decision, Vice Chancellor Lori W. Will applied, for the first time, the statute’s heightened presumption of independence for directors of public companies determined by the board to be independent under the relevant NYSE or Nasdaq listing standards to dismiss derivative claims on demand futility grounds.In conducting the demand futility analysis, which looks to whether a majority of the board can independently consider a stockholder demand to bring derivative litigation, the Court reasoned that the new statutory language requiring a plaintiff to plead “substantial and particularized facts” to rebut the “heightened” presumption of independence sets a higher bar than under pre-existing law. Specifically, the Court held that the addition of “substantial” to the existing standard that already required particularized facts meant that “a plaintiff must plead specific, non-conclusory facts of sufficient qualitative significance to support a reasonable inference of a material interest or relationship that would impair the director’s objective judgment.” The Court was clear that it is not a matter of quantity but rather quality, observing that “a collection of trivial facts” will not rise to the level of materiality required to satisfy this “heightened” standard. Applying that standard to the facts in the case, the Court concluded that the plaintiff’s allegations of various overlapping board positions, overlapping investments, and other “business ties” with the company’s founder and non-executive chairman were not sufficiently material.DR2The Boardroom Buy-InThe Taser CEO Who Says AI Is the Future of PolicingTaser and body-cam king Rick Smith is betting Axon’s dominance—and his own pay package—on his tech-driven vision66% influenceRick Smith: Every 30 seconds one of his Tasers is fired by somebody in the U.S., usually a police officer.The pay package he and his board put together catapulted him to the top of last year’s list of the highest-paid CEOs, with a compensation package valued at $164.4 million.33% no 2025; 10% no 2026Smith has already hit three of seven goals. At the end of 2025, Axon estimated the shares underlying the full award could be worth nearly $386 million.IN: Not a dictatorshipOne share one voteBlackRock 9.3%The Vanguard Group 11.6%Patrick Smith 3.5 %OUT: Patrick Smith 66% influence MMWith Chair Michael Garnreiter (2006-); sits on Audit, Compensation Committee, and Nominating committeesCompensation Committee chair Hadi Partovi (2010-): Smith (‘91) and Partovi (‘94) both members of the Theta Eta chapter of Sigma Chi at HarvardOUT:&nbsp; Patrick Smith ignores his board:&nbsp;In the wake of the tragic 2022 school shooting in Uvalde, Texas, Smith announced that Axon would begin developing Taser-equipped drones that could fly into classrooms to incapacitate active shooters.This decision was made unilaterally, bypassing Axon's own independent AI Ethics Board.The board issued a rare, public rebuke of Smith, accusing him of "trading on the tragedy" of school shootings to push a dangerous idea.Consequently, 9 of the 12 ethics board members resigned in protest, citing a total loss of faith in Axon’s ability to act responsibly.Smith was forced to publicly back down and pause the project.&nbsp;IN: The CEO Performance award was specifically voted on in 2024 and passed, barely, but it passed: 50.1% yesNintendo Boss to Give Sweeping 10% Salary Raise to Retain EmployeesWhile most of the players in the gaming industry continue to hemorrhage jobs, Nintendo is opting to take a different path. The Kyoto-based gaming giant has recently announced a 10% increase to base salaries for its employees, a move that highlights its commitment to talent retention while everyone else is laying off employees.Nintendo president Shuntaro Furukawa made the announcement during a recent shareholder meeting, emphasising that maintaining competitive compensation is central to the company's strategy. The raise applies to the company's workforce, which has grown to over 8,200 employees, the highest headcount in Nintendo's history.IN: CEO Shuntaro Furukawa’s (18%) annual executive compensation at Nintendo generally totals around $2.5MOUT: 63% of shares held by institutional investors. What the hell do these suits know about video games?&nbsp;IN: Of six outside directors, 3 are women (20% average in Japan)IN: Because they literally have questions like this at their annual meeting, in fact it was the first one: “With the release of Splatoon Raiders approaching, how does Nintendo evaluate the previous title, Splatoon 3? Some players experienced communication errors and discrepancies in hit detection in that title. I feel that Nintendo’s response to these issues may not have been consistent with “sincerity,” one of the values in the Nintendo DNA.”Copart CEO Jeff Liaw to step down, Jay Adair to returnCEO Jeff Liaw will step down from his position and leave the board of directors effective July 31, 2026.Executive Chairman Jay Adair to resume the CEO role on the same date. Adair previously served as Copart’s CEO. Liaw will assist with the transition as Special Advisor to Adair.Liaw has been with the online vehicle auction company for approximately a decade, serving first as CFO, then as President, before becoming the company’s third CEO.OUT: Leadership messiness, highlighted by a boomerang CEO and so much more:The board has a Chair (founder Willis Johnson 40%) AND an Executive Chair: Willis’ son-in-law and co-founder and boomerang CEO Jay Adair 38%The board also included resigning CEO/former CFO Jeff Liaw and former COO Jim Meeks and former Copart executive Steve CohanIN: a boomerang marks a return to the glory days?former CEO Liaw is actually leaving the boardStock price down 50% over past few yearsOUT: A dumb board for an online car auction company:12 directors5 are former or current executivesOne independent director with an car experience: sort of.Matt Blunt is the president of the American Automobile Policy Council, which represents the public policy interests of Stellantis N.V., Ford Motor Company, and General Motors CompanyServed as the governor of the State of Missouri from 2005 to 2009.Only 2 women.3 directors involved as a private inverter or venture capitalIN: CEO Pay Ratio is 46:1Liaw $2.1MAdair $432k for certain benefits&nbsp;MM1Things We MissedDOL’s Replacement ESG Rule Reaches White HouseThe rule isn’t interesting in and of itself - it reverts to Trump’s prior rule in his first term that basically said ESG (E+S really) is dumb, and that everything must be "pecuniary focused”But the interesting part this time around:Trump also signed an executive order in December 2025 directing the DOL to tighten fiduciary rules governing proxy voting and to increase transparency about plan sponsors’ use of proxy advisers. The department issued a technical release in April warning that proxy advisory firms may be subject to ERISA fiduciary standards and that proxy voting is a fiduciary act under the law that must be carried out “for the exclusive purpose of maximizing risk-adjusted return.”From the technical release in April:&nbsp;The Department has long recognized that voting rights and other shareholder rights attributable to shares held by ERISA-governed employee benefit plans are plan assets in their own right. Accordingly, management of those rights is subject to ERISA’s fiduciary duties, including the duties of prudence and loyalty. The Department first issued guidance on this topic in the 1980s. For example, a 1988 letter (Avon Letter) noted that “it is the Department’s position that the decision as to how proxies should be voted . . . are fiduciary acts of plan asset management.”(2)Proxy advisory firms may also be functional fiduciaries under ERISA section 3(21)(A)(ii) by providing investment advice for a fee to plans with respect to property of that plan.Here’s why it’s interesting:Defining fiduciaries as those who provide advice for a fee means everyone selling research is a fiduciary if the research is used in an investment decisionThe DOL is squarely defining proxy voting as a fiduciary act - which means that there can be no rational apathy as Mike Levin likes to talk about - if voting your proxies is definitionally your fiduciary duty, you can’t defer it or ignore itIf you vote 99% in favor of management, you definitionally are ignoring your fiduciary duty - half of companies will underperform some peer set, meaning they produced fewer returns than peers, in any given year.&nbsp; So you either set the time frame longer (thus forcing the inclusion of long term data like climate and social factors) and say that in any one year it makes sense to vote with management to allow them time to execute strategy, OR you should be voting against nearly half of management proposals for underperformers each year because they are not producing pecuniary returnsGovernance chairs remain under pressure as investor scrutiny rises despite rising support for directors, research showsISS found that the MEDIAN support for directors has hit 98%They found that governance/nom chairs (those are specifically governance/nom committee chairs) had median support of 94.1%Pay chairs had 96.9% supportMM2The Boardroom Buy-InJPMorgan built a pipeline of female CEO candidates that was the envy of Wall Street. How did it fall apart?&nbsp; Are you IN or OUT on this board to find a successor to Dimon?IN or OUT: Nom chair: Gini Rometty (2020)Massively connected - highest betweenness, 82% connected to other directors (highest on board)Ex IBM CEO (retired 2020), IBM lifer (since 1981), Council on Foreign Relations, Business RoundtableCEOs replaced: herself? With Arvind Krishna, who was at IBM for more than 30 yearsIN or OUT: Michele Buck (2025)Newly appointed, ex CEO of Hershey, Hershey for 20 years and Kraft/Nabisco for 17 years prior (two companies, all food), board of NY LifeCEOs replaced: zero (dictatorship at Hershey)IN or OUT: Stephen Burke (2004)Lead Director!&nbsp; 16% influence, 22 year tenureComcast since 1998, Disney/ABC 1986, director at Berkshire HathawayCEOs replaced: zero (dictatorship at NBC/Comcast)IN or OUT: Alex Gorsky (2022)Ex CEO of J&J, Boards of Apple, IBM (!), ex Business RoundtableCEOs replaced: Tim Cook, himself, Gini Rometty (!)Jensen Huang's iconic leather jacket is going up for auction.&nbsp; Are you IN or OUT on “iconic” founder clothes?IN or OUT: Steve Jobs’ turtleneck INEnabled by Arthur LevinsonIN or OUT: Zuck hoodie INEnabled by Peter Thiel, Marc AndreessenIN or OUT: Bill Gates’ glasses OUTIN or OUT: Elizabeth Holmes’ turtleneck OUTIN or OUT: Jack Dorsey’s “love” hat OUTIN or OUT: Musk’s chainsaw INSub question: if a board member has been on the board as long as the founder, are they iconic?Tench Coxe - 32 years on Nvidia board, only board he’s on, buddies with JensenHarvey Jones - 32 years on Nvidia board, only board he’s on, buddies with JensenBrooke Seawell (28 years) and Mark Stevens (17 years) - both were with Jensen when Nvidia just made dopey video cards for better video games

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