Business Pants

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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.

  1. 10h ago

    L3Harris’ misconduct problem, Mark’s bad week, the SEC quits SEC’ing

    Story of the Week (DR): L3Harris ousts CEO after investigation into conduct MM L3Harris Technologies, the company that overhauled a Qatari plane now used as Air Force One, has replaced Christopher Kubasik as chairman and chief executive after an investigation determined he violated the defense contractor’s code of conduct. Kubasik’s alleged conduct didn’t involve and has no impact on the Melbourne, Fla., company’s financial reporting, controls, customer relationships or operational performance, L3Harris said Monday. The company didn’t give details on when it received a report of the potential violation. With the aid of independent counsel, the board determined that Kubasik’s removal would be in the company’s best interest, L3Harris said. He will be allowed to retain and exercise some previously vested stock options but won’t receive severance payments, benefits or accelerated stock-based awards. L3Harris Technologies Appoints Sam Mehta, Proven Aerospace and Defense Executive, as President and Chief Executive Officer “The Board determined that the Executive engaged in conduct that was not consistent with the values of the Company as outlined in its Code of Conduct.” Kubasik will still hold onto some of his options that can net him stock worth about $23 million, as well as more than 200,000 shares of stock in L3Harris that he already owns, valued at nearly $57 million. L3Harris has paid Kubasik compensation valued at $66.3 million during the past three years, including $25.6 million in fiscal 2025. The separation disclosure says the L3Harris board decided to reach a deal with Kubasik to get him to leave rather than trying to fire him for cause. Kubasik did not admit to any violation of the company code of conduct, and the deal expressively forbids any of the parties or their representatives from making public statements “inconsistent” with Monday’s disclosure. AND THIS: Women at L3Harris Shared Concerns About CEO’s Behavior Years Before Ouster It was a warning that was shared among women who worked for Chris Kubasik: Avoid being alone with the executive and be careful on the corporate jet. Multiple women at defense contractor L3Harris Technologies LHX  had raised concerns about Kubasik’s behavior, including a formal complaint from one woman to human resources that was made around 2023, according to people familiar with the matter. The employee accused the CEO of sexual harassment, the people said. Kubasik stayed on in his role. The woman left L3Harris. Not all L3Harris board members were briefed on the 2023 complaint and it is unclear Ousted L3Harris CEO was previously forced out of Lockheed Martin job Christopher Kubasik's ouster as the L3Harris CEO was not the first time he was forced out of a company amid an allegation of misconduct. In 2012, Kubasik was set to become the CEO of Lockheed Martin when he was forced to resign after an ethics investigation confirmed that he had a close personal relationship with a subordinate employee. Why Do Boards Keep Giving Misbehaving CEOs Second Chances? L3Harris Technologies’ LHX  chief executive is out because of misconduct allegations, and it isn’t the first time: More than a decade ago, Christopher Kubasik resigned from Lockheed Martin because he was accused of having a relationship with a subordinate. The Crucial Moment That Companies Miss After They Oust a CEO It matters how a company responds to a scandal once it’s caught in one, most blow the moment by choosing secrecy over transparency.  It’s an opportunity to reset the culture that led to the breach in the first place, but instead “your PR team and your legal team tell you ‘Don’t dig into these things—it’s not good for the company,’ so you silence all the debates.”. Meta faces a $1.4 trillion threat that could mean ‘turning in the keys and walking away’—but the stakes of the case reach across tech The trial involves a coalition of 29 state attorneys general in a unified case against Meta that was brought in 2023, and will be argued by lawyers representing California, Colorado, New Jersey and Kentucky. The stakes are enormous as leading government officials across the country push for Meta to be held accountable for allegedly violating federal and state laws, including the Children’s Online Privacy Protection Act, or COPPA, and various consumer protection statutes. States accuse Meta of targeting children for Facebook, Instagram addiction: 'The young ones are the best ones' Meta whistleblower told jury the company took a 'don't ask, don't tell' approach to kids' safety ‘Harvest their data and hide the truth from the public’: Four states seek billions from Meta over child safety practices SEC says it will stop responding to no-action requests ‘entirely’ The Securities and Exchange Commission plans to stop responding to no-action requests “entirely … effective immediately,” the agency said in a statement Friday. The decision comes after the SEC sat out the bulk of the no-action process during the 2025-26 proxy season. Investor advocates have since sued the agency, alleging the change violates the Administrative Procedure Act. AI data center outrage is showing up everywhere from ads to elections AI data center outrage is showing up everywhere from ads to elections GOP Begs AI Firms to Fix Data Centers’ “Toxic Brand” to Help Midterm Chances  As A.I. Data Centers Spread, Pressure Mounts to Share Profits The Data Center Industry’s PR Blitz Is Backfiring Data center backlash echoes fossil-fuel politics Major data center bills advance in California despite industry pushback The ‘Country Hicks’ Who Refused $26 Million from an AI Data Center Bad news for Jason Kelce: Postal Service rules say you shouldn't mail pee to data centers Politicians Who Once Championed Data Centers Are Now Bashing Them Pennsylvania Gov. Josh Shapiro cracks down on data centers, says speculators are 'scaring our communities' Data centers are using more electricity than anyone predicted. What happens next? Trump oblivious to voter fury about data centers, saying ‘the jobs are enormous and the money paid, the taxes paid, are just enormous’ Politicians Turn Against Data Centers as Anger Over AI Spreads Amazon is buying rare books and destroying them to train its AI models The team's logo features a dinosaur holding a book. Data center hysteria is the new woke | Opinion Bring back the corporate death penalty More formally known as judicial dissolution, the corporate death penalty basically happens when the government is so pissed off by the corruption or damage a corporation causes that it yanks away their charter. Andreessen Horowitz Focus of DOJ Probe Over Board Directors Venture capital firm Andreessen Horowitz is the focus of a Justice Department antitrust probe over whether its investment partners are improperly serving on the boards of competing artificial intelligence companies, according to people familiar with the matter. The companies at issue include Databricks Inc., one of the most valuable privately held technology companies in the world, and Fivetran Inc., both backed by the VC firm, according to the people, who asked not to be named discussing a confidential matter. Andreessen Horowitz co-founder Ben Horowitz serves on the board of Databricks, and partner Martin Casado is a board member of Fivetran. Both companies help businesses collect, organize and analyze massive troves of data. Goodliest of the Week (MM/DR): MacKenzie Scott gave California public education $461 million—and let the recipients decide how to spend every dollar MM: Andreessen Horowitz Focus of DOJ Probe Over Board Directors DR Assholiest of the Week (MM): Bill Brown and Robert Millard DR Never accountable for anything directors L3Harris ousts CEO after investigation into conduct History lesson: Kubasik hired in 2015 after Lockheed disaster firing, hired as COO and President Presiding CEO: Michael Strianese, Chair from 2008, CEO from 2006 Board:  Claude Canizares (71, MIT physics professor, 2003) Thomas Corcoran (72, Carlyle, consulting, 1997) Ann Dunwoody (64, only woman, US Army Gen, 2013) Lewis Kramer (69, EY accountant, 2009) Robert Millard (66, MIT Chair, Lehman until 2008 collapse, LID, 1997) Lloyd Newton (74, only PoC - token black guy - US Air Force General, 2012) Vincent Pagano, Jr (66, lawyer, Simpson Thacher, chair of nom, 2013) Hugh Shelton (75, US Army Gen, 2011), Arthure Simon (85, accountant, 2001) 8 white men, 1 woman, 1 black dude 2018, Kubasik named CEO of L3 Technologies Michael Strianese retires and Kubasik takes over Same exact board minus Strianese 2019, L3 and Harris merge to be L3Harris Kubasik added to L3Harris board, named COO and President of the company under Bill Brown, CEO and Chair Surviving the board merger: Thomas Corcoran Robert Millard - LID, nom member Lloyd Newton - chair of nom Lewis Kramer Adjacent - Roger Fradin of Carlyle on board, Corcoran also of Carlyle June 2021, Kubasik becomes CEO and Bill Brown moves to exec chair (obviously) Board: Sallie Bailey Bill Brown Peter Chiarelli Thomas Corcoran Thomas Dattilo (nom) - ex tire CEO Rober Gradin Harry Harris Lewis Hay III (nom) - lawyer, ex CEo of NextEra Lewis Kramer Rita Lan Robert Millard (nom) - MIT Chair, Lehman Lloyd Newton (nom chair) - general So given that the CEOs choose their successors, the nom committees approve them, the rest of the board rubber stamps it… we can thank: Michael Strianese - hires Kubasik, names him CEO at L3, despite Lockheed problems Nom approval: Ann Dunwoody (64, only woman, US Army Gen, 2013), Vincent Pagano, Jr (66, lawyer, Simpson Thacher, chair of nom, 2013), Hugh Shelton (75, US Army Gen, 2011) - a nom committee composed of the ONLY woman, two generals and a lawyer - all of whom are the LOWEST TENURED ON THE BOARD at the time Then Bill Brown - names Kubasik CEO of combined L3Harris, one year of babysitting as exec chair Nom approval: Thoma

  2. 3d ago

    L3 CEO out, SEC proposals out, Bezos philanthropy out, Zuck isn’t cool

    DR1 THINGS WE MISSED NERDY ESG STUFF L3Harris ousts CEO after investigation into conduct CARES L3Harris Technologies, the company that overhauled a Qatari plane now used as Air Force One, has replaced Christopher Kubasik as chairman and chief executive after an investigation determined he violated the defense contractor’s code of conduct. Kubasik’s alleged conduct didn’t involve and has no impact on the Melbourne, Fla., company’s financial reporting, controls, customer relationships or operational performance, L3Harris said Monday. The company didn’t give details on when it received a report of the potential violation. With the aid of independent counsel, the board determined that Kubasik’s removal would be in the company’s best interest, L3Harris said. He will be allowed to retain and exercise some previously vested stock options but won’t receive severance payments, benefits or accelerated stock-based awards. L3Harris Technologies Appoints Sam Mehta, Proven Aerospace and Defense Executive, as President and Chief Executive Officer “The Board determined that the Executive engaged in conduct that was not consistent with the values of the Company as outlined in its Code of Conduct.” Kubasik will still hold onto some of his options that can net him stock worth about $23 million, as well as more than 200,000 shares of stock in L3Harris that he already owns, valued at nearly $57 million. L3Harris has paid Kubasik compensation valued at $66.3 million during the past three years, including $25.6 million in fiscal 2025. The separation disclosure says the L3Harris board decided to reach a deal with Kubasik to get him to leave rather than trying to fire him for cause. Kubasik did not admit to any violation of the company code of conduct, and the deal expressively forbids any of the parties or their representatives from making public statements “inconsistent” with Monday’s disclosure. Harvard reveals $2.2 billion SpaceX holding worth more than half its U.S. equity portfolio CARES Busting CEO Pay Curve in 2025, Musk Made Annual Salary of Average Tesla Worker Every 4.2 Seconds S&P 500 CEO pay jumps to record as Musk-inspired compensation plans spread: average S&P 500 CEO pay reached $340.1 million US SEC to keep hands off shareholder proposals, worrying activists CARES Staying Alive: ISS Continues Its Influence on 2026 Voting Outcomes ISS recommended against fewer say-on-pay proposals than last year: 8.3% versus 9.2% in 2025. ISS supported fewer E&S proposals than in prior years, but investor votes more strongly tracked its recommendations. ISS backed 13% of social proposals in 2026, compared with 15% in 2025 and 46% in both 2023 and 2024.  ISS supported 66% of governance shareholder proposals, up from 55% in 2025 ISS opposed 3% of uncontested director nominees, up slightly from 2.5%. SEC data center ruling is removing a key guardrail from Nvidia's $500B AI financing push CARES A staff opinion from the SEC exempts some data center debt from Dodd-Frank risk retention rules, making AI infrastructure financing more attractive to sponsors Treasury Scales Back Scrutiny of U.S. Shell Companies The Trump administration will not enforce reporting requirements of the 2021 Corporate Transparency Act, which was intended to crack down on money laundering. 25 groups urging Supreme Court to kill climate case have ties to oil companies, report says A survey released Monday by the advocacy group Consumer Watchdog found that 25 of the 38 individuals and organizations that have filed friend of the court briefs on behalf of the industry have financial ties or other connections to the fossil fuel companies that are facing billions of dollars in potential damages for contributing to climate change. The report argues that many of briefs make “nearly identical legal arguments.” Activist Cevian calls for higher pay for UK board members One of Europe’s largest activist investors, Cevian Capital, has called for higher pay for non-executive directors in UK boardrooms as part of efforts to revive growth at British companies and reverse the decline of the London market. The activist, which has stakes in companies including Smith & Nephew and Pearson, said that pay for non-executive directors (NEDs) should increase to attract and retain the best people including from international rivals.  AI STUFF Anthropic is embedding invisible watermarks in Claude text and images CARES OpenAI’s “Head of Ethics” Suddenly Leaves Company Under Mysterious Circumstances: Chloé Bakalar, less than a year after joining from Meta. OpenAI talent exodus raises ‘huge red flag’ ahead of IPO CRO Denise Dresser COO Brad Lightcap CEO of AGI Deployment Fidsji SImo Chief Marketing Officer Kate Rouch Head of safety systems Johannes Heidecke At least 12 executives in 2026 Greg Brockman told CNBC the wave of senior exits is "not that atypical" and that scrutiny stems from OpenAI's high public profile BILLIONAIRE STUFF Bob Iger and Josh Kushner are buying the Lakers for $12.5 billion CARES 41-year-old Josh Kushner’s World Cup privatization scheme fell apart. Then he became the Lakers co-owner days later Liverpool owners sell minority stake to Jeff Bezos: hold option to purchase controlling stake in Liverpool per terms of deal CARES It Seems Like Bill Gates’ Daughter May Be in Serious Legal Trouble Phoebe Gates (daughter of Bill Gates) and her shopping app startup, Phia, recently landed in hot water over allegations of a digital commission trick known as cookie stuffing. Cookie stuffing is essentially digital credit-stealing. An app secretly plants its tracking cookie into your browser without actually helping you find a deal or directing you to the website Phia initially claimed the issue was an accidental software bug. However, leaked internal Slack messages showed Gates and her co-founder discussing auto-dropping cookies as far back as December to artificially boost revenue Cookie stuffing isn't just breaking tech platform terms; US law treats it as federal wire fraud Phoebe Gates Took Secret Stanford Course on Controlling Society, Used It to Recruit for Her Startup That’s Now Facing Accusations META STUFF Meta faces ‘astronomical’ consequences as legal fight reaches critical moment in California CARES The trial involves a coalition of 29 state attorneys general in a unified case against Meta that was brought in 2023, and will be argued by lawyers representing California, Colorado, New Jersey and Kentucky. The stakes are enormous as leading government officials across the country push for Meta to be held accountable for allegedly violating federal and state laws, including the Children’s Online Privacy Protection Act, or COPPA, and various consumer protection statutes. Four state attorneys general are seeking up to $1.4 trillion in penalties and changes to how Meta operates its platforms MEANWHILE: OpenAI launches ChatGPT for Teens Meta Caught Paying Nazis to Post on Facebook Meta was paying out-and-out neo-Nazis to post on Facebook, an investigation from Australia’s ABC News found. These pages and individual creators posted content that appeared to be in clear violation of Facebook’s own hate speech policies. Nonetheless, they were able to earn money on their posts through the platform’s “Content Monetization” program — which is invitation-only. Zuckerberg's Yacht Allegedly 'Refused' Coast Guard Calls To Help Stranded Boat Despite Being 'Closer' Zuckerberg: AI's biggest risk is one entity with too much control Zuckerberg Says Meta Will Give Billions a 24/7 Personal Superintelligence, Lays Out AI Vision in Lengthy Essay Zuckerberg brings back the floating battle barge to spar with UFC fighter Merab Dvalishvili SEGUE ALERT: Zuckerberg’s Manifesto About the Glorious Freedoms AI Will Bring Was Completely Contradicted by His Own CTO During a Company Meeting Meta CTO Dismisses Vacation Requests: 'It's Very Dumb' to Ask for More Time Off During a July Q&A with staff, CTO Andrew Bosworth shut down an employee who asked if AI productivity gains could be used to revive “Meta Days,” a cancelled holiday program that once allowed staff to take more days off a year. Bosworth was apparently appalled at the idea, saying that “I hope that what we do with our extra time is do even more and cooler stuff for the users who use our products every day … We got billions of people using our products every day. I get an extra hour. You know what I do with it? I put it into that.” The executive then dug his heels even further, personally insulting the staffer for asking about work-life balance: “Go to your parents and ask them: hey, like every time I get a chance to talk to my boss, ask me if I can have more days off. Ask your parents what they think of that as a career strategy.” BLOWHARD INDEX CEO of $49 billion AI company says it’s ‘mind-boggling’ people think you can work 38 hours a week, have work-life balance, and be successful SHUT UP Bill Ackman agrees with Jeff Bezos: Being a great CEO can do more for the world than philanthropy SHUT UP Corcoran Group CEO says Gen Z’s housing market struggles mirror what boomers faced 30 years ago: ‘Stop buying Starbucks coffee,’ she advises SHUT UP SHUT UP OpenAI’s CFO insists AI won’t replace judgment SAY MORE OpenAI Warns AI Models Can Automate Cyberattacks and Exploit Security Vulnerabilities SHUT UP Sam Altman thinks working at Goldman Sachs ‘sounds unbelievably terrible now’ and admits he was ‘peer pressured’ into accepting an internship there SAY MORE Sam Altman says 4 years could be too long for college: ‘The way the world has evolved, college just shouldn’t be as long as it is’ SAY MORE Kalshi’s 30-year-old CEO says most business advice is ‘trash’—he doesn’t read management books or listen to podcasts: ‘I’m gonna make it up as I go’ SAY MORE Paramount demands $1.9 billion from states, citing Warner deal delays SHUT U

  3. Aug 7

    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 assault While 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 Suicide When 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-harm GAO finds Elon Musk’s DOGE inflated claims of $110 billion in savings for federal government The 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 USAID Lewin 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 Fox Founded 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 Stein Founded 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 Crater Why companies that call themselves meritocracies don't always pay equally AND Meritocracy claims make managers pay men more than equally qualified women MM Explicitly 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 Researchers This 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 DR Court rules against Trump EPA’s freeze of $20B in ‘green bank’ funds UBS fined record $125 million for money laundering violations Meta fined $567m in largest child safety ruling against social media giant Judge says Nexstar can’t appoint its executives to TEGNA’s Board of Directors Assholiest 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 Too Zuckerberg 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 site Anthropic's Mythos created fake identities to fool humans in new cyber incident GAO finds Elon Musk's DOGE inflated claims of $110 billion in savings for federal government Everything’s a vanity project Jeff 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 Crater Judge Sets Paramount-Warner Bros. Merger Trial for March Everyone’s a victim The AI bros are lonely Palantir 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 crisis No one is accountable DR Bobby Kotick, former CEO of Activision, may join Paramount's board of directors Jefferies analyst calls out ‘simple-minded’ criticism of SpaceX’s governance ABC, CBS, and NBC aired nearly 200 segments about three U.S. heat events without mentioning climate change Disney (Iger, still), Ellison family, and Roberts family - one cowed exec, two dictators! Headliniest of the Week DR: Pepsi is launching soda-scented body wash and scrub in a beauty collaboration PwC 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 Hallucinations DoorDash CEO Tony Xu once thought his $87 billion company would only make $100 million. He tells founders to be ‘greedy’ and dream bigger Class 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-founders Misleading proxy shows he got paid $432k (they cited a 12:1 pay ratio) but he actually made $343M from shares and stocks DoorDash 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 clos

  4. Aug 4

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

    DR Matternet Appoints Starbucks EVP Sanjay Shah to Board of Directors Developer of commercial drone delivery systems for urban and suburban environments CEO/founder Andreas Raptopoulos: M.A. in Industrial Design Engineering; Diploma of Imperial College in Industrial Design Engineering; Diploma in Mechanical Engineering Chris 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 OUT Sanjay Shah: B.S. in Mechanical Engineering Starbucks Chief Supply Chain Officer SVP of Operations, Gopuff COO, Beyond Meat SVP, Tesla VP of North American Customer Fulfillment, Amazon AAON Increases Board Size and Appoints Robert L. Buttermore III, and Patrick J. Jermain as Independent Directors Before 2/9 F now 2/11 F AAON manufactures heating, ventilation, and air conditioning equipment for commercial and industrial indoor environments  IN OR OUT: Robert L. Buttermore III: BS mechanical engineering Chief Supply Chain Officer of Rockwell Automation, one of the world’s leading industrial automation and digital transformation companies previously 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: MBA Former CFO Plexus Administration and Management: 100%. The others: Caron A. Lawhorn: former CFO, ONE Gas, Inc. Stephen O. LeClair: MBA, Chair/former CEO, Core & Main Bruce Ware: MBA, CEO, One America Bancorp Inc., a financial institution that he founded to provide niche financial and banking services Uber’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); Softbank Burns: Former CEO/Chair Xerox; currently invests in tech Eckert: Partner at PE firm; former CEO Mattel Ginsberg: Partner at PE firm; former CEO Match Group Khosrowshahi: CEO; former CEO Expedia Sugar: Former CEO Northrop Grumman (war); Apple: Foxconn suicide machine Wynaendts: former CEO Aegon (life insurance); Deutsche bank IN 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 are West 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 payouts Cherry 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 company Lies 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 risks Aniket 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 content Mark 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 philanthropy The 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 Elmo Despite her hands-on approach, the school struggled with some of its nontraditional elements Teachers, 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? MM IN OR OUT: Your AI strategy isn’t failing because of bad design. It’s because your team doesn’t believe in you Which 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 Zuckerberg ALL IN BABY!  FIRE EVERYONE! SELL Jamie Dimon “Total redeployment” BUY Bill Brown, CEO at 3M Ask3M - product innovation using AI (talk to a chatbot and get ideas I think?) SELL Kelly Ortberg, CEO at Boeing “Intelligence” - enhance spec drawings and productivity?  They’re not going deep on AI yet, no money BUY Brian Cornell, Target not-CEO-but-actually-CEO One bullet: Using data and technology in new ways to strengthen inventory planning, improve in-store consistency and enhance guest interactions SELL SpaceX's first-ever earnings report comes with stock under pressure: Q2 preview Straight 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 women IN OR OUT: MEN OR WOMEN Starbucks CEO Earns 1,794 Times More Than the Average Worker: Here's Why He's Paid $31M IN or OUT The 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 All

  5. Jul 31

    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 MM Before 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 rebrand Cracker Barrel names David Deno CEO Burger King Yum! 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 Division Bloomin' Brands for 12 years: CEO, CFO and Chief Administrative Officer Outback Steakhouse, Carrabba's Italian Grill, and Bonefish Grill Board Memberships Cracker Barrel Old Country Store (2016-) Panera Brands (2024-): Audit Committee Chair Krispy 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 CEOs These 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 war Chevron posted its highest profit in six years as the Iran war boosted oil prices Big Oil Is Getting Sued for Heat Deaths. It’s Fighting Back With an Army of Immunity Laws More 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 country In 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 emissions Oil 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 Ambitions Sam 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 companies Mark 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 2036 Microsoft CEO Warns That Companies Embracing AI Could Drive Themselves Out of Business AI hackers are getting faster. The government may not be ready Anthropic says its Claude models 'gained unauthorized access' to other organizations' systems Anthropic 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 Firms Elon Musk Commits Up to $120M to Republican Midterms: Sets Feud With Trump Aside for Major Election Push Goodliest of the Week (MM/DR): DR: Gen Z women are having an entrepreneurship boom Of 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 AI MM: Delaware judge rules public benefit corporations exempt from maximizing value in sale DR Fiduciary duty is different - OpenAI, Anthropic Assholiest of the Week (MM): Fake man apologies MM ‘I’m sorry ... but’: Apologetic Alan Joyce tells his side of the Qantas story Joyce 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 2036 Elon 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 Firms But also, DON’T stop us, obviously… Palantir CEO warns US against Europe's AI regulation path, urges Trump admin to not ban open models Elon Musk's xAI sues Minnesota over law to ban 'nudify' apps Mark Zuckerberg is urging the U.S. to accelerate AI development, not restrict it Elon Musk Commits Up to $120M to Republican Midterms: Sets Feud With Trump Aside for Major Election Push Ignoring boards Hims & 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, Snap Users' 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 Week DR: CEO apologizes for offering interviews to people who got tattoos of his AI company logo San 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 story MM: Amazon received $600 million in tariff refunds and will pass some back to customers MM: Trump Staff Cuts Blamed After Watermarked OpenAI Map Mislabels Africa at AIDS Conference It’s the fact that we have less staff that meant we couldn’t bother to figure out which country was which Who Won the Week? DR: Kohls: For getting some much-needed female influence on board: Kohl’s Appoints Wendy Arlin as Chair of the Board Currently only 2: Robbin Mitchell (7%) and Wendy Arlin (1%) Jo

  6. Jul 28

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

    DR1 CEO Overlords In 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 Shopify In 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'***************  MM1 In 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 Arrived In 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 Millions In 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 change Are 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! DR2 In 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***************  MM2 In 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 Cameras Firm is AI-Rgus and it’s able to tell if your camera is tilted or blurry In 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 relationships In 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 Possible In 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

  7. Jul 24

    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 MM Or: OpenAI Says Its A.I. Models Went Rogue and Attacked a Digital Library OpenAI Says a Group of Its Models Broke Out of Secure Containment and Hacked a Prominent AI Site OpenAI Reveals AI Agent Breached Another Company's Systems, It Did Exactly What It Was Built To Do What 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 accelerates Nubank’s David Vélez and BNY Mellon’s Robin Vince Don’t forget this too: ChatGPT Allegedly Told Woman She Had to Die: Family Sues OpenAI Over Messages Before Suicide The 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 regulation XAI Microsoft Meta Google OpenAI To make things even more confusing: Alphabet’s Anthropic Stake Jumps to Around $124 Billion Google Discloses $94.1 Billion in SpaceX Stock, Marking 6% Stake Don’t forget: Microsoft owns ~27% stake (~$135B+ valuation) in OpenAI Target appoints former 7-Eleven CEO to board of directors Debt, Cost Pressures, and Strategic Missteps Joe 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 2021 In 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 2024 DePinto was selected to serve on Target’s Audit & Risk Committee and Infrastructure & Finance Committee Oracle signs 10-year software contract with Pentagon worth up to $7 billion Oracle 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 investments Goodliest of the Week (MM/DR): DR: France blocks access to Polymarket website MM citing 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 law MM: Is Target going BANKRUPT? Target appoints former 7-Eleven CEO to board of directors Typical process for failing/bankrupt companies are to add “turnaround artists” to the board DePinto: 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 A*****e Says What Speed Round: Sam Altman: 2023: Sam Altman: CEO of OpenAI calls for US to regulate artificial intelligence 2025: 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 regulation July 10: OpenAI’s Head of Safety Is Leaving the Company July 21: OpenAI Says Its A.I. Models Went Rogue and Attacked a Digital Library Elon Musk Elon Musk Declares 'I'm Not Racist' After Posting Racially Charged Content Throughout January 2026 On 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 Huang Jensen 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 Zuckerberg Bill Ackman CEOs 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 labor Andrea Lucas / anti-DEI industrial complex - DR EEOC: Employers may no longer have to disclose race and gender data “Collecting such data abo

  8. Jul 21

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

    DR Warner Bros.’ Zaslav Offers $68 Million to Buy Summer Camp new 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 down Under 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 tenure Gould 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. Lowe Ken 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&T Richard W. Fisher Outside 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. Lee Debra 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. Yang Just 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 votes At 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% no 6/9 AGM: Shareholders Paul A. Gould 52% no Richard W. Fisher 31% no Debra L. Lee 32% no Kenneth W. Lowe 31% no Geoffrey Y. Yang 31% no Zaslav 3% no Say on Pay 84% no Still on board Paul A. Gould Richard W. Fisher Debra L. Lee Kenneth W. Lowe Geoffrey Y. Yang Zaslav The 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 poor 1,378 to 1 CEO pay ratio. Andrew M. Cuomo Joins the OKX Board of Directors The world Men  Greed The 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. Trump Trump 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 Ramaswamy The 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 DeSantis Spearheaded 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 bonds Argues ESG is a way to bypass voters and enforce a political agenda through corporate power. Peter Thiel Called ESG a "hate factory" used to control capital and punish companies that don't fall in line with mainstream corporate ideology Tariq 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 portfolios Mike Pence Argues 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 Texas Called ESG an "opaque and perverse system" that violates fiduciary duty Andy 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 economy Senator Tom Cotton Attacked 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 violations Sanjai 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 companies Men I pay my employees $1,000 a month per child for day care. It's one of my ice cream company's best investments. A woman All women DEI Molly Moon Neitzel founder and CEO of Molly Moon's Homemade Ice Cream Her busines

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About

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.

Information

  • Creator
    Free Float Media Inc.
  • Years Active
    2019 - 2026
  • Episodes
    314
  • Rating
    Explicit
  • Copyright
    © 2024, Free Float Media Inc.
  • Show Website
    Business Pants

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