Transcript
Yeah, oh, yeah. Oh yeah. Oh yeah. Oh, yeah cool! Whoo! Ha live. From the Vanguard hates you Pavilion. It's an all new. Terrific Tuesday edition of business fans joined by analysts whole map mascardi. Whoo. Seems like a. Not a great way to spend your marketing Capital, calling it the Vanguard hates you Pavilion. I don't write this stuff and today is BLT was spicy. Carbon disclosure called September 10th 2024 a super nerdy ESG. Good game. Oh That's what we haven't done. One of these in a while. Yeah, this is an old fashioned good game. I'm really picking the most ESG specific topic like boardroom battles, and things like that. I like a good poor room battle. You know, I do Does anybody else like that though? Is it is there anybody else? Who's gonna be listening? Look what the only reason why I keep doing this every day. Is I, I'm hoping that there are analysts out there who, listen, and steal what we say, and then make their jobs, better and get, maybe get a little bit of a raise, I don't know. So we come. I love this. We have a lot. I love your hopes and dreams. I really, I love your hopes, our show today is being sponsored by free flow analytics. The only platform measuring board power connections and performance for free. Really? It's the only one I like that. It's the only one measuring gold, power connections and Performing, first of all, and it's great. And I mean, it also happens to be largely free free flow, analytics.com. You just sign you just need an email address. You just sign in and I have like that email addresses. So I know I know you're like I'm sure you forgot one account, you just use your Yahoo dot AOL you have MS. And here's the good game works, I pick headlines that you know, feel good. I guess and Matt The Art of Truth steps in and tells me They're actually good on a scale from one to 10 0, to 10. We've been doing this for literally six years and you don't know the scale still, there's a new squirrel in my yard, so I'm explaining it to her. Here We Go Again. These are very nerdy, which is good. And you know what? There's no No, Kimball musk today. No nothing. So none of those crazy stories. Just the issue stories. All right, there we go. Well, really that good music? No, I don't like that music. Here we go. Southwest, it was a good one. Southwest Airline shakes up board. But does not fire the CEO under pressure from Paul singer's activist hedge fund. I'm gonna give you a little bit of details here you tell me this is good or bad. Okay. So the chair, Gary Kelly, who was the former Southwest CEO? So the C, the Southwest board has two Southwest CEOs on it. Yeah, he's actually three, he's gonna step down next year, but the CEO is going to stay. So, and also Southwest agreed that they're going to add. Six new directors in November. No no, no, they're gonna get rid of six directors in a point for new ones. Some of some of whom could be coming from Elliot, right? Elliot could be suggesting so that's what's going on over there. South is this good. I mean, a good boardroom battle here. So I think Southwest actually has two other CEOs on its board, if I remember correctly, there's another person on the board who was the CEO but I might be remembering that wrong. I think you remember, Bob Jordan, there's Bob Jordan who's the current CEO um investors You don't have to have the CEO on the board. The CEO does not even have to have their own boss CEO on the board. Let alone used to work for your company. It's not a rule, it's not a rule and it's okay for the CEO to not be their own boss. You're only Innovation over the last 30 years is to create some kind of hectic, way of boarding a plane that makes everybody nervous. Yeah. But by saying like are you in row a through unicorn, everybody pile into it, by the way, none of the seats are assigned the big innovation. I think they announced it this year was that they were going to add a signed seats. Good, I like that. That was The Innovation. What do you think this is good? What? I'm just a victory for Elliot. Um seems like maybe a little bit what's with? This is we're in this new age of like people stepping down next year. Why can't they say? Yeah, that's the other thing. I wanted to talk about this is not the CEO not. This is this is somebody who's been there for, like 30 years. What do they need like seven months time to step down? They've it's not like they haven't built in redundancies for that guy. Like, yeah, but I am excited about six directors, leaving November that's been for us. I mean, that's good. That is good. I am super excited about Jeff son and felled writing, a piece of how Robert Jordan is laser focused. I'm making sure I'm not a cat, but we'll get to him in a couple of headlines later. Yeah, I'm excited. I think this is fantastic. This is actually, I don't know why. It always takes an activist to do this. Like no one. Not us. Listen to us. We're here that Kelly was on, the has been on the sport forever. He's literally a dinosaur. Like, like it's absurd that an exit your baby, because his innovation in 1994 was hedging. The price of oil. He's been sitting on this board living off of feasting off of that while like the airline Basically the one of the worst airlines in the United States. He's also one of our worst performers Gary Kelly he hits 224 overall, that's really really low in our in our universe that's horrible metrics like you you rarely see under 400. He's in 22. I mean terrible you have to try just the law of averages. There's four numbers that we averaged to give them an overall batting average and the four numbers are two of them. One of them's earnings, one of them's TSR one of them's carbon intensity for an environmental thing and then one of them is controversies like how much does your company fuk up? Just the law of averages, like you're not every other directors, he's not good. And he's been sitting there for. I think this is great. I'm sad that it took an activist investor to get it done, but I think this is great. So I'm giving this a nine. This is, I feel like this is a good way to start, then you're here today. Ari's, giving you permission to adjust your score by. I feel like I need to and you empowered. I'm gonna say that nine is right. You know what just? Yeah, that that's right. Yeah, apple apple must pay. 14.4 billion dollars to Ireland and Crackdown on sweetheart deals. This is from the wow, European court of justice. They're getting sick of Ireland, giving all these sweetheart deals to tech companies or anything about this one. This one's weird. I don't understand is not very descriptive. Go ahead well. So what's interesting about it is first of all, it the in we just study back in the day and back the mothership and msci. Yeah where we looked at a different studies. They like their papers. No no no it wasn't a paper that went out. It was a study that I did buy my channel study on the Dark Horse for bathroom and yeah. Yeah, but it was about the Regulatory jurisdictions and how much the average finds were by jurisdiction. Depending, on the things they were finding what we found. Effectively was the Department of Justice in the United States was the only regulatory body that issued multi-million and billion dollars elements on a regular basis. Like it was, the US is sure. You can fuk up and break the law all day long, but we are going to rent extract at the end of it. Some of your gains. Don't worry, we'll never put you out of business Europe. On the other hand, they were all really weak, fine. It was like, nothing ever happened until recently where suddenly now, it's like Europe is all the big fines in the US is sort of middle-aged. So it's interesting, the regulatory flip here, but what do they paying for? Is this just taxes? This is just back taxes, basically, Ireland. You know, they've been giving quote, unquote. Sweet heart deals to tons of Different big tech companies that headquartered there in Dublin. And basically saying come move here and you don't have to pay taxes, which doesn't benefit the citizens of Ireland. Of course, does anybody who talks about Apple ever associate them with Ireland like this you know I would say the Irish company Apple. Yeah. I didn't know, I didn't realize any of this until I took a vacation to Dublin and there's a there's a new section of Dublin. It kind of reminds me of the Southport, the seaport in Boston, it's brand new. It's kind of ugly because it's brand new and it's all American tech companies. It's like, wow, it's really strange. Actually, it does not fit in. And they should be paying a lot of taxes. And yeah, like four billion, sounds small for Apple. But I imagine that's an important figure for the country of Ireland, right? I the Republic of Ireland. Sorry, look the fact is that the average human being on this planet, has to pay taxes in some form or another. And when you cheat taxes for like, Twelve dollars. You get like a million dollars in fines and if and you'll never let you it's possible. Never climb out of it. Meanwhile, these tech companies can just move around the world and find the lowest taxes and then not pay any. So, I'm happy that somebody's paying tax. I don't think taxes are a bad thing. They pay for stuff like roads, so I'm for it. I'm gonna give this a seven. I like it. I like it. Uh, yeah, that sounds about, right. I think you're onto something, seven. That is. That's some tough for you to cash right there. This adjustment thing, I'm adding to the show is really stupid, but here we go. This is this one, is the one that hits the Jeffery son and felt Um, who what is Jeffrey? Son of who he's the management expert. He's a CEO, Dr. The CEO Whisperer. Who is he? What's his name? He is a Dean at. Like, I don't care about the art. What's he yells known for me like that school management Guru? He's like, yeah, he started the I think he started the very first CEO effectively CEO school. He is the, he is the guru of all CEOs. He throws annually of like a conference where every and I know every major CEO of he makes a big fat and they all sit around and they talk about like yeah, see you stuff. They talk about tater tots, mostly blah blah blah. The reason why I mentioned Jeffrey Central because he's one of my new favorites, he comes up with these outlandish. Like statements. These outlandish, like, like 900 page documents to support very one-sided, documents to support his favorite CEO. He did this with Dave Calhoun. Get me to hate hate hate. This guy's research and then, of course, Dave Calhoun. You know, he's gone. He's he's out of course, of course. Yes. And then he really bizarrely had this. This report backing Norfolk Southern CEO Alan Shaw. He had all these wonderful things to say about Good Old Alan, he attacked and Cora and Kara. He attacked the investors that were trying to you know change the the boardroom over there at Norfolk Southern and it was just a very strange juvenile argument he didn't have, I don't know. It was just I was off putting to me and here we go again. Jeffrey stonefields. Favorite CEO. Another one is out, Alan Shaw, Norfolk, Southern Soul, who stepped down? I made a misconduct probes. So I guess he's involved in a next, a bad relationship. What do you call it? A, an ethical relationship there at Norfolk. Southern he, according to the Wall Street Journal, he's stepping down. I so is it a coincidence. There's only one of the anchor directors whose on the audit committee. But is it a coincidence that like four months after the biggest board? Turnover at a board that was highly insular. Basically hand picked by like prior CEOs. What was his name? Mormon, Wick, Mormon, or something like that? Is it a coincidence? That as soon as you have board turnover and the board becomes more independent, see what you're saying? Seven minutes later, the guy is investigated for misconduct and out, which is the board's job, right? That's what they're supposed to be accountability. So, like, it makes you wonder, like, how long Alan Shaw is a lifer at Norfolk? Southern so, how long has he been getting away with possible misconduct? You'll never know. Yeah, maybe it's brand new but the fact is, as soon as you flip the board, they realize, oh, he's been doing some bad stuff. Oh, recently, you're yes you can Spurs. He had would suggest that either this was has been going on for a while and they are using as an excuse to push him out or right, like it does make you wonder what's going on here. Because again, like Jeffrey's son and others, they really dug. And despite a lot of outcry that wanted to get rid of them. So they really dug in on him being like, no, he's our savior here. And, and frankly, if you look at you, it didn't have to take an internal investigation about possible misconduct to get rid of him. You just had to look at the performance of him and the company, right? Like that's been a train. I can't believe I'm doing. I didn't even mean, but it has been a relative train wreck, so sorry Norfolk over there. Yeah. All right. Anyway. What's your score on this one? I love all everything about. This is how governance is supposed to work. If I was making fun of Jeffrey, son of felt and then his, his decisions. Go up every investor. She's Every Time Jefferson CEO, it ends in disaster. That's my point. I'm waiting for Bob Jordan to get a Jeffrey sonnenfeld 70 page, you know? Presentation I'm waiting for Is the the Jeffrey sonnenfeld book. Touting, Bob chapek at Disney. I'm waiting for that. Oh, yes! That'll be. That's a must read. I love this. Because this is what, if again, I don't know why it takes an activist. This is what investors can do by themselves. And without an access, and to your point earlier fiduciary, this is why you don't need CEOs on the board in the first place. This is, it's bananas to me that like that, this is even a question. So I'm giving this a 10, I love this. No, because we spent shows and shows and shows on Norfolk Southern how they would game the system, the head of the Safety Committee at Norfolk, Southern prior to the crash, didn't have any safety experience, like one day. And then the next day he did because there was an activist at the time and then they replace him with a new head of the Safety Committee who they didn't disclose having safety experience. And then they were and then he did even though the second guy actually looks like he has saved. Periods. But the point is their jury rigging things to look a certain way culturally that seems to have been going on forever. So I love it. I think this is great. Your 10 is correct. Although, it's not for the reason you're giving. It's for its for my reason because it's just funny that every CEO that Jeffery son of a loves is like fire three months later. That's not what I said that there was a I don't remember who it was but there was some other entity to that that took great umbrage with son of felt supporting Alan Shaw, right? Because they wanted they wanted to for son of a school is like why are you doing this? Like yeah. Why are you filing like why quora? Because Norfolk Southern themselves used on unfolds report to to back up out on Shaw, okay. It was in course and where's this coming from, like who asked you to do this? And are you must be working for the company, right? They demanded disclosure of possible conflicts of interest and that's got quiet because the number of times that Jeff son and felt puts out a 70, Presentation and backing a CEO has been one this time, right? Like most of the time you just goes on the news and says, you know, Dave Calhoun is laser focused on turning Boeing around. That's what he said and focus on safety. And this time he had like, students at Yale research and cause and Allen Chevrolet arguments. There are a lot of he was, he thought that? And Cora was, was personally attacking. Yes, who wind up stepping down because of Miss conduct. Yeah, he didn't say that. He is there. It's crazy. All right, moving on. Next headline. No one is above the law. Google loses long running EU Anti-Trust battle another case out of the EU, the European commission rejected, Google's appeal against a 2.7 billion dollar penalty You know, might be a lot of hits recently. Right? I know my problem is that it's Google. Like do like if we were to start with billions on small, any company for antitrust, why is it not Zuckerberg has to be? And I don't mean every time, every it should be Zucker WhatsApp, Instagram, Facebook, effectively taken. He's taking advantage of two laws. Number one is section 230, which allows a platform not to be responsible for what's on the platform, right? Like so he's taking advantage of that to the nine billionth degree, right? And number two is antitrust. Laws were built to break up railroads in the 1800s. They were basically built to say if you're overcharging a consumer for something and you have a monopoly, we break you up, but what he's done is creates something that is quote unquote free because we do not value the data, there's not a numerical value we can place on the data. So we're We're not saying we're charging you for something and where actually claiming it as a quote on quote, public good which is all fake, but he can take advantage of that whole free speeches, rains. I don't know what it is. But yeah, he ends up and only 85% of the fucking market and gets away with it like, yeah, without actually owning that percentage and shares because of a dual cluster that gives him. Yes, power that he has actually earned About how we got that Zuck but that's well because I'm a mixed mind of Google. Right. Like I do have I do have I want to see, do have a suck headline later if you want to save some of your rage, I know Google is an antitrust too, especially in search but there are really fucking good at it. I don't know. I feel like this is a 6.2. That's what I feel like my adjustment is no adjustment because I don't care. All right, moving on, it's really good segment for you. Tell a gram CEO Duro. That's probably Durham says the messaging app will tackle criticism of how it moderates content saying that he's already disabled New Media uploads to a standalone blogging tool which seems to have been used by Anonymous actors. I don't really know what that means. Wow, here's why here's Why I chose this one's. that he's not that he has nothing to do with it. Tell her something to do with it. This is Free Speech. Yet he's starting to fix stuff already. I mean, what a crock of shit this know the irony is that like a week ago. Oh, I like this. All we heard was police sirens as he was threatened to get sent to jail. And all you have to do is Casey's not over in France, but all you got to do is threatened a tech, bro, with jail for doing shit. You're not supposed to do and look at what he doesn't mean, which is it is he responsible for something or not? Why is he changing? What is anything to change in? The same way? The Zuck is responsible for everything, he's responsible for everything. I really might take away was all, you know, what dirab should do is create an oversight board and then everyone will leave him alone, right? I hate this, I hate this because it exposes the incredible horrible non-ironic. Truth about what fake dual club like the fake public companies and the private companies that all espouse free speech and he doesn't prove that has nothing to do with free speech. He has never had anything to do with free speech. It has To do with making money, private companies for themselves. Yeah, these are private companies. So, I hate this. It's a zero for me. I don't like it at all. The adjustment is, that's correct everything to do with him. Wow, it's amazing. It's like the adjustments. Don't adjust anything. Uh, the other part, I hated about this article, which the headline doesn't suggest, is one of his reasons why he's saying, everything is fine in telegram, is that it's only like 0.01% of the users that are horrible despicable criminals. Which yeah, which if you do the math, it's still like, I don't know, like 10,000 horrible criminals, like that's not okay. That's not, that's not good enough math for me, Pablo, I'm sorry. Moving on. Oh, this is a good one for us. In our, super nerdy ESG edition of the good game for September 10th. 2024 Nelson Peltz. Oh yes. Speaking of petulant anti-walk billionaire, waiting. Yeah. He's gonna star in an all black cast, Marvel movie. Would not be something in blackface because he's not black, clear. Oh, just saying like, but, you know, okay with that, right? Because not, not having black face is whoa, right? Ha because we want to write in a Maga world because he's the one who had that make America great campaign at Disney, right? He wants to go back to the 50s where black? Okay, we're completely yeah, I'm like I have to do some deep analysis on this Nelson. Pelt is stepping down as chair of Wendy's board. Oh, that's the headline. But let me tell you what's going on behind the scenes. While you think about what you think about this, this is 30% of lardy influence up for grabs according to our data. Now he represents 30% of the Lord over their at Wendy's. The remaining power is his nepo baby kid, Matthew Pelt, who still there it is, who has 22% influence and Um, also with 22% influences 80, one year, old Peter met who's been a Wendy's executive since the 90s and is a founding partner of Nelson, peltz's trying? Yeah, so maybe that's going on at Wendy's. Yeah, it's just Nelson, stepping down Nelson. Step down. Matthew is remaining, and he's not even really stepping down, he's gonna stay as chairman emeritus, which? Yes, still gonna be in the boardroom, like, chomping down on Wendy's greasy, burgers. This is literally, this is literally the fakest news headline I've ever read in my life. Well, but according to the business, who's who, who actually has no understanding of this. And yes, I'm looking at you CNBC, it says, it starting a new era for the burger chain. No era. The founding partner was companies there and he's Still on the boardroom that you know that may like the number of 80 year olds on. Wendy's Board needs to change in and of itself. Why does this whole thing? See even try, why don't they even try to understand what any of this means? Why? Why don't I try like, what? What a headline, though? They literally are right, earning a new era. It's a new era. Meanwhile, the guy is just moving to the chair one different chair. Where it was still there and the old founding Partners. This is the dumbest, this is zero for the headline. This is the worst headline. I'm actually gonna you just actually is gonna change your score to a five because you know the new chair is named art Winkle. Black. That's a great name. Our Winkle black. Wait, you're just going entirely based on the name? next headline, Boeing Boeing, always in the news, Boeing reaches attentive labor deal, I don't think it's been voted on yet, with 25%, pay hike and a commitment to replace 737 planes They're proposed for your contract has been held by the Union as the best it ever negotiated in a big win. A big early win for Boeing CEO or Kelly. Ortberg, let me ask you something. Yeah, I don't understand the replace the planes part like the plain suck and need to be replaced. Is that like What is that one either? Yeah, and also a commitment. I think to rebuild Manufacturing in Seattle, to stay in Seattle, which that's, that's seems like a win. I yeah, I don't know. Again, this hasn't been passed yet. This is, I don't know when it passes. Tell me. Okay, it's a five with you. I just, I really pointed this out as another kind of a little slap to Jeffrey, son fell for supporting Dave Kyle home, but as soon as Dave Calhoun leaves, there's the biggest win ever for the Union at Boeing and a big win for the new CEO. So there you go. Laser, focus, laser focus. Oh, I mean, this is probably my favorite headline of the news cycle because, you know, this is my pet peeve. This is the thing that I I put in second, place CEOs, on board, CEOs, who are all so chairs. That one is, like, one of my biggest ones, but number one is this one. And here's the headline. Starboard proposes that News Corp eliminates. Dual class shares. This is, wow. According to the quote from starboard, this is clearly not the appropriate governance structure for a public company, right? That's all you need to say. That's it. That's it. So this is a proposal coming. Hopefully gonna be on the on the proxy statement at the next meeting at News Corp, mild, catch Because I read the starboard letter. And it does say that, and then says, in the next line, sometimes getting it is appropriate if you want a Visionary founder, who stays on, but wait, what they said they said that but he scored is not, it's the is the opposite of that archetype. So they they said this is not appropriate, but it is appropriate sometimes and not appropriate, here is really what they're saying, they're there like that. Keith is. Chair Emeritus. This is like a chair of Meredith game today. Yeah. because, Like starbirds basically saying they point out that he's the chair Emeritus. And that that, that that title basically means you're in the board without being on the board. And you have no accountability to shareholders, not to mention, he's the Dual class yeah. Control. Right. I think at least 40% of voting power. So despite only owning 14% of the company, can we agree to two things? Number one, that dual class shares in all instances, should not exist, right? Like those are fail. How do you? How do you public? How do you follow up a quote? This is clearly not the appropriate governance structure for a public company. How do you how do you fall out with anything else? How do they qualify? Well, they did. So, let's just stop with, it's not appropriate and it doesn't matter the circuit, any of this, not appropriate, it's because you're either public or you're not. So let's stop with that. And number two, can we agree to eliminate chair Emeritus? We do we need that. Is that a thing? I don't need, I don't care. I want to start with eliminating the combined role. Of CEO and chair. I want to start with that one. I mean all of it, I'm gonna give I so if I go strictly by the headline, yeah, not by what they said. After that in the letter. I will give it a 10. Yes, and you're kind of right for the wrong reason. The adjustment is a 10, but the real reason is that, that this is just a story that people are now forced to talk about dual class shares. I just like that, that's nice, it's nice. Otherwise there is a there is a court battle going on. I think already now. Nevada, you know, it's private, it's not a public court battle but deciding the what's going to happen with the keys Rupert, Murdoch shares, right? How they're gonna be passed on to the next to his heirs, right? This is going on now. They're fighting over someone's fighting about something. Yeah, so real life succession going on there in Nevada's, aren't they? I didn't he try to change the will give it all to the. Yeah, they wrote that right? Yeah, it's at all. Give it to the monster. All right, so here we go. Back to Zach. Here's the headline. Meta oversight board. You love when I talk about the meta oversight board. I do, which is really just another way of saying Mark Zuckerberg. Yeah, well, let's be clear. Yeah, meta. Oversight board, asks firm not to automatically remove pro-palestinian phrase in the Fraser. Talking about is from The River To The Sea. And, and look, I don't know how you fall on this. I have a very clear opinion about this. I mean, maybe you maybe, Matt you fall into more of like a free speechie territory. Unlike me who just hates the phrase. But but I just love the new ones of this and how stupid this oversight board is in the first place. But they said that the phrase from be, it should remain because the phrase from the river to the sea has several meetings. And as such okay, it's used cannot, it's self be deemed to be harmful violent or discriminatory discriminatory. And they go on to say, while the phrase can be understood by some, as encouraging and legitimizing anti-Semitism in the violent elimination of Israel and its people. So it so it's both Be that it is, there they're acknowledging. That's one of the definitions. One of the main even that is not enough something else. Even that is not enough to eliminate the phrase because it also could mean something happy to somebody else. Yeah. Like I enjoy boating from a river to a sea and this is like stupid. It is putting a monopoly social media company under the control of one, stupid College Dropout, I don't care at all about the content of this in as much as like, that's not what the way in here for me. Is the first five words in this headline. Meta. Oversight board asks for Zuckerberg, that was funded by Mark Zuckerberg, like he's paying their salary, and I like that, it's this firm and not Zuckerberg. When will the headline writers? Just write Mark, they should just write over, say bored like Board of experts in humanitarian and social issues begs Mark, can you please do something like and again, can you do X Y repeat? Their argument is that while while some people think that the phrase means the violent elimination of Jewish people. Essentially someone else thinks it means like candy canes. Some people, some people think it means watermelon, I don't care, but that part to me, it doesn't again. I don't know how to beg. It's just everyone begging a College Dropout. With no Nuance. Who's a multi-billion, doesn't even own a majority of the shares, but through some stupid, just slasher, provision is allowed to control. He beg, everything they have to beg, and we look up to that guy, because he's a multi-billionaire. And that is the dumbest reason to look up to a person. I, I do. I love him. I'm trying, what's your score here? I'm giving this a 0. This is, this is correct. That's a no exactly what adjustment could you possibly. It's actually a sevens, the adjustment, because it's just fun. It's fun to make fun of the oversight board. And it's important also to hear about rating, how to make fun of the headline reading the headline. I just think it's important that do you really like, I think we're the only company left that still hammers away up marks. Aberg for not who for sure. The fact that he shouldn't have all this control of this Monopoly. Well, I think we're the only ones left, that's sure. We're also, the only ones who read every oversight board. That's true. Still like seven years after they were created. Well, I realize that Elon Musk is sexy to hate, but you really should still be upset that this guy is the CEO, the chair controls, the voting power without controlling the ownership of of one of the most important social media, monopolies in the globe, you should still care about this. Go back to Old School. Hate hate marks. Here's another funny one that I like this one, too. Like once today in the good game. I'm Here's the final. Here's the headline Logitech founder. Fails an attempt to oust chairperson. So here's what's going on Logitech. The founder. Daniel Borrell is trying to oust the chair Wendy Becker. I feel like we've seen this a lot. We've seen a lot of disgruntled Founders, trying to get rid of female chairs in the pasture. Yeah, here's the craziness out of this one, he wants to get rid of Wendy, Becker. And he wants to replace her with a board member named guy get. And the fire is named. The funny thing, is that guy gets his already said that. He would not accept the position of chair if you get, he doesn't want to replace Wendy Becker. He doesn't agree with that. Well, here's something so. Bobo Burrell, right? I looked at his nickname Bobo. Is that, right? Yeah. His nickname is Bobo. He is a boomerang CEO from the 90s, so we are in Howard shows territory. Yeah. And he actually has Been chair emeritus of Logitech that's essentially use chair Emeritus and it makes me think we need to revamp our model entirely because we need chair Emeritus in there. Which we do have. We talked about this with Starbucks because we are currently, our model does not account for a Founder. Who actually has a pretty small stake in the company Schultz. He's under 2% now, he's under 2%. Same with Bobo Burrell at Logitech, he's only at 1.2% and yet they we yield this incredible amount of influence still. So we do have to figure out how to add these people to our model. Can we stop fetishizing? Like, like, seven Founders like their phone. Calls. They're still dialing on rotary phones. Yeah. You can you can ignore it? Yeah, you don't. Your professional. You didn't get To the board because you're not a professional. Just do your job, doesn't it make all the more scary? The fact that he only owns 1.2% of shares and can be this much of a pain. Same with Howard Schultz and yet Zuck owns what like 70% of shares. I mean, it doesn't make that a lot more scary, that idea. Oh, it sucks. Never going away. He's gonna be chair Emeritus until he's 90. Um, but I think I'm gonna rate the headline on this basis, which is to say, first of all, you don't see many female chairs of your companies. It doesn't happen, right? So already, that's a big deal. Forget female chair Emeritus. Have I ever seen have, is there ever been a female chair emoted? Was there one know? They're probably wouldn't be one. Right? Right, because they would have had to found the company. Sorry. Redstone, yeah. She's a redstone's daughter. Maybe she'll become the chairman of America but second how often does You because you have such a small number of ever having a woman as chair. How often do they defeat? The founder. Like this went to a shareholder vote and the shareholders did not lick, the founders ass, they said 86% voted for her. Wendy, Becker, that's fabulous. I'm gonna give this a 10. I love a good founder rebuff part of this. I think, is that? I don't know. I should know this off the top, my head, let me check is not an American firm right now. I think it's Swiss, so I think that's part of this is that there. Yeah, there are salty. Yeah, they're giving us six fine. I give it. I gave it a 10. Oh, 10. Yeah, I actually think 10 is more like it because I just think it's funny. I just think it's funny that his choice to replace her. He just picks a random man off the board and the man's like, no, I don't, I don't actually want. I don't play sir. Yeah. He picked a man named guy. That's like picking like a guy named, dude. All right. Next one. This is one that you requested. I tried to take it out of the show, but you I think you had some comments on this. The headline is Cable News Channel Newsmax is playing to go public. So this is a yes Newsmax. Finally is a cable news channel that's to the right of fog, right? Let's sit right of Fox News like way to the right and I originally included this because I just loved one any company goes public because then we can officially make fun of them. But why do you what do you want to talk about here? So, this reminded me, we covered this in past shows of a guy named Omid Malik, who started. He's a venture guy, he started a company called 1789 Capitol. Yeah, and that's really bad. That's like true maggots. It's it's all for good night. Let's go all the way back to when it's legal. Yeah, we're going to the 1700s. I would I love about it. Is they their primary objective was to invest in the quote parallel economy, which is effectively the economy that disdains black people and the environment and promote the legal, the real legalization of slavery. I guess that's one of. Yeah, I think that he suffrage of women The deed suffrage. Yeah, but like the Newsmax must be the Crown Jewel of the parallel economy because in, for Newsmax, in their investor presentation, which we were sharing images from this morning. The, they actually have a value section and it in, it's like five values, like leading Newsmax, and none of them are facts or truth. There's no facts or truth on it. It's they did have faith in America like as two-step America as a value just America does that include all the non white people in America. But then they like as if they want, they are going actually backwards. The the investor presentation tries to make the case that linear television broadcasting cable is not going anywhere and is in growth mode. That's what I talked about these show. Actually a chart that shows when Trump got elected. They basically went from no Revenue. To a much more Revenue which makes me think so you know, capitalism works because they're just going to find the people where they are and then the revenue goes down but they show an arrow going straight up that says they're estimate because they they have like one bar in 2027, that's like an estimate. And the arrow goes up from really low to the top of the estimate. Even though the real numbers are going down and the last three years, I love everything about it. It not only is a parallel economy. It's a parallel that reality, they could just, they're literally building it. I think it's fabulous. I feel ashamed, fun. I feel ashamed to have a serious comment about this, but I actually do have a serious thought about this. If the Nevada Court decides that the shares at News, Corp will be split among the children, right? And the suggestion is that the three children will outweigh Lachlan and they want to push Fox News to be a bit more Centrist, right? And if starboard has its way and somehow they miraculously get rid of dual-class shares another, another way reason, why Fox News, actually Mike get pushed to be more centuries because a lot of people are sick and tired of Fox News acting this way, it's only really Lachlan and Rupert that won it. Then, the Newsmax actually probably will do really quite well. Yeah, well right, because they, they will become the new discussing horrible, Fox News, right? You know, the amazing part is In that was somewhat serious. That is separately, amazing. But equally is amazing. Is in the perspective that like the memorandum documentation, they say that it's likely to remain a controlled company. It's gonna be dual class when an ipo's. So I love the pro-democracy, America, Freedom companies that are all for Kings. Like they are literally have Kings of their own. This is great. This is a seven. I love it. Seven times find next headline. How about this one 85% of banks? Financial institutions rely on ESG ratings for financial strategy. I just I not only do I not buy it. You don't buy that. I buy it all. First of all, CDP wrote it. I know. Okay, I love that part out. Yeah but it's very much in their interest. Write that down somewhere. I included this because As with all this bullshit anti es, she talk going on. You crazy not to look at the signals that come out. Look at the data. Fine. But can we say the ratings or not? You should be like if you're looking at a rating as a starting right ratings, might be like a kind of a quick way of saying, they look at some of the signals that create the right. Yeah. And that's all they. That's where they stop. They're like, 10 out of seven Globes or what, I'm only pointing out that. And I'm talking to you like Texas and Florida and all, you weirdos, you'd be nuts. Not to just at least. Look at the data that that creates these ratings, right? I mean, could you imagine just not even paying attention to it? I mean, you can have whatever thought you want about, but imagine just not even looking at it. It's just, I mean crazy. It is. It is like putting your head in your sand in the sand, right? But I think that I find this dumb. It's a five for me. I don't care. The adjustment says you're right because I don't really care. They're headlines. I just wanted to throw this one into the good game. I think we talked about this in another show, but I want to officially canonize it X Volkswagen CEO to finally face trial nine years, after dieselgate Scandal Rock. So just And that's the guy's name. It's Martin winterkorn Martin, winter corn. So Marty so actually, so this is this is a 10, this is great. I actually looked through msci's database speaking, the mothership, I pulled their controversy data on any outstanding lawsuits or massive controversies. And by Massive, I mean, like Global style controversies that are still outstanding since 2008, which is when the VW first investigation started. Yeah. Which is incredible. There were three incredibly long time. 2008 2008, yeah it was elected. There's three that are still ongoing. It's actually before he became president, he became president in January 2009 this is how long ago that was. There's Carlos gone and Nissan still ongoing modern cello case. Yeah Mr. Cello case he and if you don't know where we're talking about, he escaped Japanese law by hiding in a cello case to get this story, to get to escape to Lebanon, the US banks are still under Investigation and paying out for a manipulating interest rates for municipal bonds, effectively. They basically pushed up the rates of Muniz, so that the rest of us tax paying human beings are just paying a little bit more to have a road so that the banks could make the money boring facts. But that's like a big group of banks, but my favorite, this is one that literally no one talks about. I don't think I've seen it anywhere and this might be the next Marty winterkorn The Boston Scientific in 2008, there started investigations around transvaginal mesh lawsuits. You know, this brings up was this not one of the first topics we ever discussed when we when we created the podcast. Yes. She now at msci. It's like one of the first headlines ever first 400 years ago. And and these companies Boston Scientific Johnson and Johnson coloplast a bunch of these companies have paid 8 billion dollars since 2008 billion dollars collectively because they were implanting mesh into women. Because they were incontinent or after having birth giving birth, which is normal or just in general. They were implanting these things and they all like a bunch of them failed. They basically are horrible. They had to do multiple surgeries afterwards and they've been paying out since then. The worst part is the CEO of Boston Scientific Worked at Johnson & Johnson in the medical devices before joining Boston Scientific, and and fighting these, these lawsuits, and he still sits on the board of Baxter. International, congratulations to that guy. That guy, maybe, maybe what made me think is, maybe there's hope. Maybe like that guy goes to jail for basically implanting shit into women and it doesn't work as we speak Jeffrey. Sonnenfeld was working on a paper saying that Michael Mike, Mahoney is laser focused on what something unmesh the laser focused on something, but China Health. Yes, it's a 10, the adjustment is actually a nine because he's facing a trial, nine years after Diesel Gates, finally, on the good game September 10th 2024 30, is she good game? I don't know how we've talked this one. I don't know how we're like getting close to six hours here, but I wanted to include this headline van. This is Go into the joke of the opening. This show Vanguard backed, no. None zero environmental, or social measures proposals in the 2024 proxy season. And here's why I'm including it in the good game. Yeah. How is this a good because bear with me here? Because not? Because they're rejecting everything because they might be the first proxy advisory company wherever you want to call them, or no, they're not coming up that actually has some of a recognizable methodology, right? They're just saying no to everything because usually, I can't understand why something's get to yes. Something to get to know some directors, get support. Some don't, it's always so like wishy-washy. But Vanguard just saying, no. So let's get behind them. That's something. What is the point of Vanguard? Then like what do we need you for? They have a, they have a stewardship team. Well, we need them for the jokes, the opening of our show. Well, we need them to buy free. Analytics data, but then not use it, right? Like we all like if you're going to vote, no on everything that a shareholder puts up and then yes, on every director, which is what they do already, right? What the fuck do we need you for? Like, here's a pledge point of view, Vanguard, I know you're listening. Here's a pledge to Vanguard. If if you go into contract with us, take our data by our data, I I promise Hard Sell. I'm just we promise here at the podcast division of free flow to do. 50% less jokes against Bingo, 50% feel yeah, we'll do it. I'll do it for the money. I pulled a little bit of data about this and it turns out the average support for environmental measures in 2024. I just look at environmental for the fortune, 250, the largest 252 in the United States, United States. Yeah, for 250 was 12.8%, that was the average support, that's average, which means like, you know, that includes all the ones I got like 1% and way higher. This one's way higher than the average against vote for directors. I'll say that. Yeah, and it includes the anti-woke ones where they're like, we want you to get rid of your environmental stuff. So like, so that's bringing stuff down. In fact, there were 17 companies they got over 25% support. I cannot believe Vanguard couldnt find one well one. That's what I'm saying that's for, they're not one at least, their methodology is recognizable. It's clear. There was a, there was a shower proposal simply asking Kinder Morgan that a national Gas Company. To adopt one ghg emission Target like they didn't have no and Vanguard was like, no that one doesn't really work. They couldn't back the New York City controller's office. They couldn't back norges bank. They couldn't back the Illinois. State Treasurer, at least. I get it, at least I get it. What's your, what's your? What's your ending? This is a zero that you just, you just killed it. Zero. Zero, you give me to zero. Yeah, I think you're wrong again. Like I appreciate that Vanguard is just sticking to a theme. So I'll give it a six that. Wow. Wow, that's the show. It's finally over the score for this week. You're average score. Probably because of that Vanguard is a just below a six that's pretty low, that's not bad. That's literally, I live in five to six and the adjustment worked out to a seven. So that's that's about right, you're crappy adjustment, that's all. We've got. It's like seven hours of good game. I don't know. We just talked a lot. I am your analyst Elementary. We are free float. Tomorrow, we are dropping on a totally different Channel. A totally new podcast called shareholder, Primacy. Yes, with Mike Levin. Whoo. And Lipton, two of the greatest Minds in governance and activism in law. On the planet, we are dropping that that on our free flow channel. So go subscribe to that shareholder Primacy will be on Apple, it'll be on Spotify, it'll be a lot of places so you can get that in all those places. Otherwise, we'll be back like, disciples our first underlings. Our first, I think we're their underlings not because they join us. They I think on Thursday we'll be back on our other channel. The project countdown To do Darden Restaurants because if you want to know how bad all of gardens board was and we'll tell you and on Friday, we'll be back to wrap up the week until then good. Bye.