Transcript
Mmm. Yeah, good time to clear my throat right now. Yeah, live. From the Vanguard wine cellar. Where the wine is spelled with an H. Oh, because one of their clients is asking them to vote on a director. Oh, it's an all-new terrific. Tuesday edition of business fans joined by analysts Hall. Matt mascara de On today's. Bacon dusted, audit committee chairperson called October 1st. 2024, a dummy, ESG news quiz in a while. Oh, we have not but I do like the idea of a bacon, dusted audit committee chair, what happened to bacon dusted. It kind of went away. I feel like the pandemic killed, all the fun of life including bacon. Dusted things. Was that a thing though? I don't know where that was a donuts and I don't know. I have never had a life insurance plans. IPhone 24. All right, our share show. Today is being sponsored by free flow analytics. The only platform measuring board power connections and performance for free. This is no joke. Over the companies. How many directors, 20,000 90,000 and I use this, I know some of you are thinking boy these people, these two are idiots in this show was frivolous but really actually you're wrong. It's not. I use this database things that I use this database constantly for research to find all kinds of wonderful things. Even simple things like 10 year, you know age. He doesn't have to be all the complicated stuff. Can I ask? You does it? Does it undermine know the platform? When you say I use it for research that you're honestly, you're stupid not to use it even if you just do a little bit of light research on on equities, you want to know the boards and it kind of does it's easy, it's really easy to use. If you've got a portfolio I'm really responding hood of like four stocks. That your brothers uncle said were hot. You should just look up who runs these companies. I mean, it takes everything works well for free. The search bar works. Well it's quick, it's responsive. All right, come on, let's get to this show. Let's do a quiz. Come on. All right. Let's do a quiz. Do we need one quiz music? Or what are we doing? What am I doing for you? Like, give me an intro. Okay, it was in trouble music. Okay, fine. There we go. So, what I did man is I just picked Picked six headlines from the past day. I think these are really the past day or two and I'm gonna ask you a series of questions. ESG questions, mostly governance related. But questions about the companies are talking about. The people are talking about here. Okay, let me start off, give me this one. This is something we talked about in the past and I think this is going to be your new favorite exchange. A new favorite Stock Exchange pretty soon. I have lots of favorites. Yeah, Texas. Stock Exchange moves closer to launch with leadership team and board. What? Texas governor. Greg Abbott said on Monday yesterday, that the exchange will ensure that businesses have access to Capital. And that market participants have more Choice. Oh, I love that like very well. So I'm very well. It's super Rebel's. Love choice. Here we go. Let's go dive into the leadership team. I went right to the website 22 people. 22 people in the leadership team, how many women Matt, how many women on the Texas Stock Exchange leadership, team, 22 people. And before, you guess I'm, there are a lot of women in Texas more than half. I think, actually, a lot of women in Texas, but a great universities to Universal Texas. SMU rice in pre-production Damien said he was doing a quiz, so I avoided basically as much news as possible. I have not seen any of these, I don't know what's going on with any of these. How many women on the leadership team at the Texas Stock Exchange. Wow, what a question, I'm going to go with six six, that's generous, Matt there, one one. Her name is Nicole Chambers. A single on the leadership, team at the Texas. I mean, Just that's a mic drop moment, right for that exchange? I mean, they're basically who they are. This is who we are, that's called choice, is what? That's, yeah, let's stay with that. How many how many people have called her on the leadership team? How many people of color? Remember this is it, this is not Maine, this is not Vermont, this is Texas. Where white people are in the minority in Texas. Yes I was doing a research project for a client where we were looking for man brand risk for these like Dei coward, U-turn boards. And they're exposure to like states where the where there's like manliness quote on air quotes built-in and I did not know the Texas was actually like only 37% white, it's actually majority non-white. So Even if I ignored the demographic demographic and said they skewed white, I am still, they have to have at a 22 people 229 of them. At least nine have to be again. Very generous. The answer is one Oh no, so this is not the woman know, it's not the woman. It's a man named Harvey Cloyd. So this is the, this is the anti Dei movement in action, right? This is the anti ESG movement personified the Texas Stock Exchange. Congratulations for bringing America back to. What 1841 is that where we are? 1823. Yeah, let's that should be the next question. What year is Texas, in? What did they wish it was? I and I have to tell you something about Harvey, because it made me laugh, Harvey, Cloyd is only board service. I'm not gonna make you guess because it's on a place called The Crenshaw Christian Center, which is a mega church in Los Angeles. But I have to laugh at this because they sound a lot like Norfolk Southern because the Crenshaw Christian Center is run by the price family. It's just four price members listed on the website. One of them is no longer living. So we're already down to three, I'm 72 of them, Dr. Fred Price. And Dr. Betty Price, they're called doctors, but they have honorary doctors of divinity. Honorary, that's not a doctor, I'm sorry, it's not a doctor. No, right? It's, it's like, like, I think actually, what happens is, you, you go into a room and someone uses a sword and Taps either shoulder, you know, doctor second of all, this is a mecha church. That was featured on the ABC news program. 2020 about ministers who become really Wealthy by misusing their congregants. Yeah. And then all so in 2017 Fred Price Jr. Step down after eight years, essentially a CEO apologizing for serious, personal misjudgments which have affected my life and family and the Curt the church did not disclose what those, what those Mr. Judgments. We're just like, just like a publicly traded company, right? So this is and of course he came back a CEO, he's now back. So this is the perfect, I think place for the only person of color to be on the board, right? It acts just like a publicly traded company. It's perfect but but that said, this is a stock exchange. This is a place. I'm just saying it's good experience, right? It's a family firm CEOs coming, go for ethical reasons. No one knows. Why? And people and there are fake doctors and Leadership. It's perfect. It's perfect for saying, like, your job is to oversee like the legal and, you know, mechanics of trading stocks on an exchange. I am not sure that family run mega church in Los Angeles, is a qualifying characteristic? I don't know what our knowledge Maps. Let's get to the board of the Texas Stock. Exchange seven directors, have been named so far, seven directors. How many are white dudes? And directors. How many are white, dudes? Yeah, white wolves. Well, we know, there's only one woman and we know there's only one person to color. And that's a dude. So that means there's 20 white, dudes, right? There's no, we talk about, just the board of directors. Now seven named board of directors, so that's not the leadership team. Got it? Oh, seven. Seven directors. Oh, that's exchanged boards are different, right? Because they are, they are, they, they tend to like, like, like like brown wash aboard, the leadership team will be all white people and then they throw in like, a couple people of color and a couple women. So I'm going to say, I had a seven, it's four white dudes. No, right? You're you're way off on this and the Texas. It's all white dude. All seven but you're right. You're right. The demographics did change because this is. Where is the leadership? Team is like what? Like 4% women. This is a zero percent so you're right. How many of these seven? How many of these seven white dudes are named Rick. Maybe this is an easier question you. How many named Rick? Oh no. I actually I need to take some time with this question. I've got so many of these wrong. How many are named Rick? Well you wouldn't be asking the question. If it was just one you know I don't know. You don't know, I don't know. But I'm going to go. I'm gonna say three. Oh, you close? It's too close. Oh let's finish off Tech Stock Exchange. How many of the Ricks on the Texas Stock Exchange board where the former governor of Texas and forgave the 2010 BP oil spill as an active. God that cannot be prevented I'm going to go with one one, what a genius. All right. That's the Texas stockings. Let's move on to the next headline for our big quiz. The headline is Major CVS shareholder. Plans activist push will will meet with management that's exciting. That's always exciting in our world because again our data a free flow analytics.com has a lot of data that really will help all activists and investors it helps you target, maybe who you want to remove from the board who you want to promote on the board and maybe other directors you might want to add to the boards. A lot you can do activist investors with our data So, here's the first question. True or false. The last appointed CVS director, Scott Kirby, who joined the board in October 2023 has expertise and experience relevant to CBS. That one is false. I believe, Scott Kirby is the CEO or Xeo of like United Airlines. Very good. Exactly. You're right as follows. Well, known airline industry veteran on Pharmacy. What are we doing here? What are we doing? I don't know. Matt, what percentage of board influence is tied up with directors over 70 years old with average, 10 year of more than a decade. This is a nerdy, very nerdy question. This is yeah you got I like the first one with how many Ricks this is a little more serious. Now I'm gonna go with 40%. 40 percent. Right. Right on the nose. Yeah. So I'm I'm only pouring this up because again for any you know, clients potential clients people who just want to use the database. This right here is just like a great first Target, right? You could open up almost half the board influence by targeting these directors for. Well, this is what they did at Southwest. So Elliot, when they moved into South West, the South West board. Something like 60% of the influence was people over 75 and easy. Easy, Gary Kelly. Who'd been there since 1994. So this is like an easy way of saying, how far out of Step are you with what this company actually does, rather than just recycling your friends, those? Yeah, those four directors. How many have relevant experience to the operations of CVS Healthcare? Oh, that's my guess. So CVS is one of those we on the proxy countdown. We do this all the time. We find these, like large mature, American companies that have, you know, board members that basically are all NBA's and finance people and accountants and then like nobody has relevant experience except for the CEO. So I'm gonna go with none close. It's one a man named Jean Pierre me on with former CEO at PCS PCS Health Systems and a former executive Eli Lilly but the other three a partner Law Firm, the former CEO of Ralph Lauren and the senior advisor of the tpg climate rise funds. I don't know what that is. Okay, yeah I don't know why they're on the CBS Sports. How many CVS director is a court in our data are batting over 400 and earnings? Oh, wow. And there's ten directors. You said or is it 12? And I think it's a I'm gonna I'm just gonna make the answer three, no matter what I'm gonna say three. Yeah. I don't know. The yeah, I should have written that down. I don't know how many directors there are. I think it's about Uriah about 12. It's only one, which is probably why they're probably looked at our data. It's just Michael Mahoney, who actually just joined last year. He's hitting 503. Overall, the team is hitting two 14 and earnings. So maybe that is like Squarely 500. The average is just video poker. Yeah, So yeah, overall they're hitting 214. So when was the last year that investors even noticed the board at CVS Matt when the last time they even cared, um, It's a weird question here. I'm not sure how to not very well worded either. Yeah, I'm going to say 2017. I don't you. Whatever, you're close 2020 was the last year. A direct to received a vote even greater than 8% votes again. So investors percent. Really investors don't even seem to notice. No, they don't even notice and then, and maybe this is why I suddenly an activist investor comes in, and is now making you sweat a little bit right about this. Recurring pattern. That like, no one cares about directors until an activist whoops in. And then all the sudden everybody cares, right? Everyone, cares that. And it's like, you know, you can care before the activity, you actually have decades to care before an activist shows up. For those of you who wants a public school, it's a little bit like when you know, when the principal walks in the room to observe the class and the teacher and then suddenly all the kids are all the kids, right? Really good. Yeah. And finally on which Day of the fiscal calendar would see, CVS CEO, Karen Lynch, earn pay equal to the median compensation of CEO workers. We touched on proxy countdown. Is that her realized pay or is that her just total summary comps summary cops? Wow, that is a little bit longer. It's like an extra day or two. This is the figure release by the company itself in the proxy. I'm gonna go with day 12. Oh you're you're you're off her. Actually, it happens on the first day of the fiscal count. The first day three, ninety two to one. Is that race, she owes, so There's a woman who might be worried about her job. If activists are getting involved one day you make as much as well actually to be fair man and employees. It's less than a day to be fair. Oh okay. Sorry she got around like 2 p.m. and she's made as much as the median worker there at CPS. That's not bad. That's all right. That's CVS. Healthcare's move on to the next headline, all right, Charles Schwab. Yeah, you got some music for me, Charles, yeah, we go back to this. Yeah, the right music for this company. Charles, lotta headline today, about this story, Charles Schwab, CEO wall bettinger to retire at end of 2024, Rick wurster to replace him. That's big news, right? CEO, Charles Schwab stepping down. Sounds fun. A lot of headline, a lot of headlines. But Matt, who was the true leader of the Charles Schwab Corporation Schwab, isn't it? Charles Schwab who's on the Charles? Yeah, that's correct. Yeah, call the board. So he's the founder, he's the former CEO and he held 6% of shares, which in a, in a single, a non-dual class share company. That's a lot. That's according to us. Yeah, there you go. That's the next question. According to our data of bearable only at free flow. Analytics.com. What is the actual influence of said? Charles Schwab. Oh, well, he checks some boxes and seeing as I checked out I'm gonna say how that data works. I'm going to say 66%. Yeah, it's basically correct. 64%. Yeah, that's that's sounds right. So I don't know why they had like the headlines seem to be missing the real power structure. Like a good misleading headlines like guy chosen by Founder replaced by other guy chosen by founder. I like that, that doesn't read as well. So with that said, who is truly second in command after Charles Schwab, is it retiring, CEO, Walt bettinger or future CEO? Rick Wooster. Well, that question depends on whether or not Walt bettinger will be on, will stay on the board after he retires as like executive chair for a little while and then make believe position because then he would truly be second in command. Like we're going um I'm gonna say bettingers bettingers, gonna stay safe and command. He's gonna stick around for a little while. I'm sorry, this is a trick question. It's actually Charles Schwab's daughter and former executive Carolyn Schwab Pomeranians who was currently on the board. So close, I have to feelings that she has a very close relationship with the founder and former CEO. Charles what I mean, what a, what a world like the headlines covering this. Are just missing. Make bigger Point. Yeah. Okay. How about this? What percentage of board influence is held by women who are not related to Charles Schwab? This is according to our data, that one's easier because if I know that Schwab pomeranz and Charles Schwab on 64%, right? And she's gonna own, probably another 12% on her own. That means you're talking about, you know, 75% is owned by two people who are both named Schwab and then you probably got a board. That's really 50/50 split. But you've only got 25% ish of influence to say, eight eight, very good. It's nine nine percent. There we go. Sorry. And finally for this Charles Schwab headline, you see Yo, taking over how many, how many executive chairs does it take to oversee the Charles Schwab bored? Wow. Well I mean Charles is Charles is one of them. Yeah, he's the only one and and then I my guess is Walt bettinger is probably yes there too. Right. Yeah, exactly. Right. I'm gonna take two, two chairs, right. Why why do we need that? Both of them are among the top five paid named executive officers. What do we need this? What do we need to do executive? Chairs, even Walt being called executive chair. Are we just? Are we doing? Like there's only one executive chairs, the guy who owns 6% of the stock and found to the company. Yeah, what I was looking at the, the compensation policy at the company and basically, Charles Schwab is involved with all decisions, like he has the right, he sets the pay for himself and for everybody else like he's involved in all the decision everywhere. I mean, That's not technically allowed, the headline like for a throwback would be like Smithers takes over nuclear power plant, while Monty Burns stays on board. Like, it's not, it doesn't, it's not a real thing. All right, let's move on. Like moving next couple of ones. Fill in the date. Okay, I'm gonna read the headline. You I took out the date, you fill it in fill in the date. Volkswagen X boss. Martin winter, corn has has diesel gate trials, suspended until when due to ill-health. Oh man, I can't believe that we waited 12 what 12 years for this. That's the next question, that's the trial. And like as soon as they announced the trial, he falls ill and they have to postpone it, it's like a joke, I'm gonna guess. February 7th 2028. That. Yeah, that's the funny answer. It's actually 2025 we have to 2025 and and you referenced this what year did Volkswagen admit to installing software to rig admissions levels and millions of diesel vehicles World 11. I was, it was like September 2011, you know, you might be right about that. The year they have written down here that they admitted, it was 2015, but I thought it was before that, that's the investigation started like three or four years prior, to either way. It's been at least a decade and we have to keep waiting. Okay? And okay, finally, they referenced ill health, right? That they post their postponing this several months, right? What is the ill health that has caused a suspension of a troll? What is this? This mysterious ill health that he can't go to court? It doesn't he have an allergy to Justice? Isn't that what it is? You know, he also must have an allergy to zoom, right? I don't know why they couldn't set up a zoom in his home. Office. Oh, I'm guessing I'm guessing it's something like, you know, like his pinky fingers arthritic. What is it? Okay, I'm gonna give you the correct. Answer on that one. Listen to this, listen to the reason why they postpone this winter corn recently slipped in the shower and broke his right leg. What the what are we doing? What are we doing? Germany. What are you doing? You know, that they have like ways that when you break a bone called elevators around, get put them in the elevator. All right, that's it for the Volkswagen's story Justice, I guess. Never gonna be served in 2030. Next one, spot. The error in this headline, this one's very simple spot. The error in this headline. Okay, I like this Elon musk's non-profit. Settles labor board case for 450,000 dollars. I'll repeat that Spot. The error. Elon, musk's non-profit settles labor board case for 45000 dollars. Wow, this is hard. Okay. Um, Because it could arguably not be actually Elon musk's. Non-profit, could be more likely, it's not really a non-profit to something else. And a labor board case, it may not be at all. Either 45000 dollars. Probably only thing that's true in that I'm gonna go with its not a non-profit. Oh sorry, but you were on something there. The right answer is it's Kimball musk's not like brother, like brother. Um they're both horrible. People involved with the National Labor Board. So his non-profit, big green is paying this fine because they fired 10 workers because they were trying to unionize just like his brother beautiful. Wow. I just love the Kimball musk is in the news. He's actually in the news twice this week because there there they found old video where Kimball musk admitted that he and Elon were here in America. Illegally they were illegal citizens for quite a bit of time as they while they were living here in forming companies. And this is this came out, because of course, Elon Musk hates every, every illegal whatever he wants. I don't know what he's calling these people legal citizens, illegal. I don't know what his term is and in fact, he thinks that they're flying illegals to swing States. That was Kamala Harris and he also said that, if you don't vote for Trump, there will never be an election again because of Kamala wins. Our democracy is over. And I'm just saying this is Kimball and I'm just excited because Kimball musk in the news twice this week. Twice there. I don't, I'm not excited for great reason. He must in the news. I'm not, let's move on quickly. Final question on our big quiz for October. Wow, that was the best way to this is the best question because it's final another departing CEO. Weight. Watchers CEO is suddenly out of a job. That's the headline sutley. You know not gonna know the answer this I'm going to ask you anyway what is the name of the departing CEO? And by the way, it's not Weight. Watchers. The company is actually called WWE International, but whatever. It's like see me something. Wow, I'm gonna give you a correct answer right there. Yeah, I it's incredible. He must have a great memory Seamus name. Two reasons. Why I see him. I might be quote unquote suddenly out of a job. You think of two reasons? I mean, it's Weight Watchers. So like if this sounds crass, but if she gained weight with the board fire, that's actually, I don't know. I don't know. I'm gonna guess that. The the fact that it's basically a penny stock, that's not the right answer. That's number one. Yeah, this is one share price is down to 84 cents from 40 dollars and 2021 in about 10 dollars when she took over. So she was already taking over kind of a glass Cliff scenario. There was a second reason is obviously ozempic. It's like yes, no, listen to this. I I had to conclude this because it made me laugh because when she took over, she sent Weight Watchers in a New Direction acknowledging that weight loss isn't necessarily a matter of willpower by acquiring a Telehealth company that markets anti-abuse obesity drugs. I mean, I got a laugh at that, you have a company Weight, Watchers, and you're basically telling people that it doesn't really matter what you, what you eat. Yeah. Well, When you have, that's what she said. Yeah. Right. Like yeah, they didn't pivot dramatically to be A lifestyle, a health lifestyle company, or something like that, right? They changed the name, wait watches, I think. Because because of that decision because of like the Advent of and we'll go V and all those drugs before she left the board. How many of Weight Watchers nine directors were women? Now I know you're gonna channel the texting Stock Exchange here. You're going to my Kik know how many the opposite right? Like isn't what isn't their thing like their core demographic that they're, which is a little ridiculous because it's a little weight isn't specific to a gender. But there are demographic was women. So, and I know they had Oprah on their best until May 2024. Yes. So I'm gonna guess it's you said nine directors. So I'm gonna guess five women. Yes, right on the nose, a majority women. Yeah. But and it's funny that you say that you're setting the demographic, but that doesn't have any effect over most of the companies in our database. They don't care about the customers or their, or the stakeholders, when they write. I mean, no, Stock Exchange as an example, but I do think that there's a certain authenticity that goes with the company like this, like, you know, like they tried to stay true to their demographic. So what they perceive their Traffic to be, I should say. According to our data, SEMA is stepping down with 28% of board influence, but the next three highest are all men with an aggregate 42% influence. So given that information, according to our data who do you suspect is the interim CEO? That a manner or glass Cliff woman? It's definitely a glass close woman. Yes. Yeah. It's a woman named who they actually got a woman from the board Tara. Come on today. And let me ask you this final question of the quiz. For October 1st 2024, probably my favorite question of the whole quiz, the interim CEO of Weight Watchers. I'm gonna repeat that the interim CEO of Weight Watchers. Was formerly the CFO at which company. Oh okay. So you're giving me a clue by emphasizing the word like this. I just like this tickled me but Oh man, I'm gonna go with. I don't know Boeing. Oh well, you're going to different direction but the answer is Shake Shack. Wow. Really? Seriously Shake Shack, that's real which I Which I love it. I love a juicy High caloric cheeseburger at Shake Shack. It's it's it's it's wonderful. It's probably all your your entire day is Cal though. I'm just gonna warn you that the delicious shake and fries. You're probably into like day three. You're already have. You've already earned. You've already eaten like the the median calories for three of your workers for the entire year. If you've had that can't delicious real. Yes. Absolutely. That's the worst thing I've ever. That's the quiz. That is your hazelnut Rallis. I am your analyst. That's a great way to get your ESG news by the way. Honestly, we I don't know why we don't do this every week, we'll be back again. We actually this week's weird because it's weird, God for the end of the week. We're next week. We might have a wrap up showing Friday. We might shut Try to get it together. I'm going to try to if you want to be a special guests. Just call up. Call somebody send me an email, hit me up in 1 800. You wish I think our number is 1 800. We are going to do like a guest appearance. If we can put it together, I guess appearance, short, notice guest appearance for Friday's show, where we wrap the week. Now, you gotta be okay, calling people assholes and rating stories. All you need, all you need is a pulse and a microphone. Let's can we set the bot bar slightly higher than that? Like just a little bit.