Transcript
Live from the glass. Lewis proxy advisory Think Tank. Where all meetings are scheduled for seven seconds or less. Oh, it's an all-new terrific. Tuesday edition of business pants. Joined as always by analysts whole Matt McArdle. yeah, and today's ESG skeptic, windbreaker called March 12th 2024. Biz nuggets. There's the energy. It's like the whole thing is like you build up. Our show today is being sponsored by free flow analytics. The only ESG data platform to measure real board influence and diversity power gaps. Come on. Yeah, you know, it's more than that if you want that data for free, just please call us. Then we'll negotiate. How's that for a sales pitch? I don't know. Ready for this. Ready for some jokes one, here, some jokes. It depends. Okay, what how depressed you are telling them. I'll tell you this. I have two sections. Today. First sections are all Boeing section. Oh, I, I don't know if I like that. And the section second section isn't all AI. Sam Altman section. I hate everything. You just said. Let's go. Let's do it. Come on. I got a lot of them. in our, What was the classic joke again? Gun to your head. Would you rather fly in a Boeing jet or in an Airbus jet where the pilots are both asleep online of the week? A plane flew for 28 minutes with both Pilots asleep. But Matt, that was an Airbus. So again, which would you choose the average 100% Airbus? Okay, because it didn't crash. I think happened. Well, I mean, the chances that like the side of the plane would fall off and you'd want the pilots to be awake are less on an Airbus. So I'm way, I haven't heard a lot of Airbus problems. It's just that. Yeah. you know, in our CEO. Dave Calhoun. Was overheard rocking himself to sleep repeating. What about the other fucking 56? What about the other fucking 56 headline of the week? Boeing fails 33 out of 89 audits during FAA examination. Wow. Wow. Their 33. That's adorable. If they had said six, I would have been like, oh my God, that's terrible. I mean 56 out of 89 is a 63%. That is a minus, that's a D minus, that's cool. That was enough. It's a D minus. They're still graduating that's all in our CEO. Dave, Calhoun was overheard rocking himself to sleep repeating. What about the three other fucking tires? What about the three other fucking tires? Headline of the week? See the moment a United Airlines Boeing 777 loses a tire. Just after takeoff look there are four tires. He's at 75% now he's passing at a secret. Actually, I might have gotten that joke from maybe there's only two, three tires. I don't work. There's like one up front. I don't know. It's like I saw the video. I think there's like, it's one of those, like, Mega tires. Okay, four tires and one thing. Whatever you get the joke though, right? I got other tires that I get. Is that he got a C on that great. That's right. and our CEO. Dave, Calhoun was overheard rocking himself to sleep repeating. I told them to use fucking Palmolive. I told him to use fucking Palmolive headline of the week. The FAA found staff at Boeing supplier using liquid Dawn, soap as lubricant for a 737, Max door seal. Wow, Does not even it's not even the good stuff. It's like it's like mid-grade dish soap. It's not Seventh Generation. It's not organic right? It doesn't have real lemon. It's good. It's not Pall Mall but it's better than Ajax. I mean really the question is, who do you want to lubricate your your door? Seals? Do you want cold Olive or Procter & Gamble? I want the entire bowling bored. Their lubricating. I want them. Lubricated him. To Dawn soap and our. Where did you last? See it headline of the week? Boeing tells Senator, it can't find work record for door panel, that blew out on Alaska, Airlines flight, quote, we have looked extensively and quote. I mean, what is the extensively is? I mean like these work, that everything goes into a computer so like don't you just search for the word door panel control F door panel? Yeah, I mean, it can't be that hard, you know, our The Boeing board said don't ask me, I'm independent headline of the week. Boeing whistleblower? Who want? Who warned of aircraft safety flaws? Found dead. Oh, I don't like that. That is a big story here that I don't know. That we shouldn't just gloss over. Probably cover this on Friday. I think we'll cover this but but yes this is not a this is not a happy story. No. And finally, my, in my Boeing section, I'm gonna end on this dud of a joke. This is a terrible joke, but I'm gonna I don't care, like it's your Ender and our are, I told you to say so big, they can fit eight, Airbus a320s, you dummy, headline of the week? Oracle said his data centers are getting so big. They can fit eight Boeing 747s. Oh well actually no I wedged that joke in there. No but Oracle is you're wrong and Oracle is correct because the Boeing planes have been grounded and likely are parked in the data center. Wait a minute. But I was thinking about this first of all, why would you use Boeing in any way to like self? Congratulate what you're doing and B? Yeah like how are they? If there's all your equipment in there. How are you? So I just I don't know what's he talking about? I don't know. They're just they're just, I think they're losing CEO mask. I think they're using panelists. Tireless planes as a unit of measure. That's all. Okay, all right, what do you got? Take over for a while. All right, how about these for dads? I promised 10 full Duds in two segments today. First up, In our resources include willingness desire. Caring wanting to and come on Headline of the week. BlackRock Stewart ship head warns of resource constraints for engagements. I I saw this I couldn't get through the paywall in this article. What who is, he warning, what is he talking about? She sorry, you know, she is warning that despite having a team of 65, analysts, 65 animals. That's what kind of what we have here. Yeah, they don't have enough resources to actually do engagements with the companies that they own. Hey, I get help them, speed up the process. We have to scale. Performance data on all on companies. Covering, how many directors coming? How many 9,000 equities? Yeah, we've talked to Blackrock about our data and one way, you might be able to increase the effectiveness of your engagements, is 99% of the vote that you do or for directors and you have no date on the. So what we offered is data on 220,000 directors, at 9500 companies all over the world and what institutional investors everywhere are saying is we don't actually care. That's what they're saying. They have resource constraints and maybe that's why they can't afford free flow data. That's correct. That's all the resource constraints. I still don't really know what she's warning about like, who is she warning? I don't really understand the premise here. I guess, she's saying warning. We're not really gonna do anything. So don't get your hopes up. I don't warning their clients that they they won't be able to talk to any companies and simultaneously warning. The companies That they can go out and pop champagne because they're just not. But this, but this is the resources. The constraints are. This is the resources that are allocated to the stewardship team, right? Because we know that BlackRock has plenty of dough Yeah, apparently just the stewardship team does not look even though they have 65 analysts in engagements and votes and proxies are considered a cost center. So okay resource constraints. This sounds like a dog whistle to the right saying. Like don't worry, we're not gonna do, we're not doing anything this year even though they haven't been doing anything for several years. Wow, I like that. That read in our, a fart in the Church of sustainable investing. No. Okay. How about a door plug in a, the Boeing plane of ESG Okay, how about a resource constraint to engagement headline of the week? The anti-esg lobby a speed bump on the road to sustainable investment, not a roadblock, Okay. Tell me about that one. I just like the editors thinking like the metaphors, like the metaphors that could have been there on the road to sustainable investment. I actually think I prefer a roadblock because you can usually navigate around a roadblock, but the speed bumps annoying me because you gotta slow down and I have an old car. So it's like it's bumpy and it hit my head. I hate us. I like a fart in the Church of sustainable investing. I don't like that. What else you got? Come on, in our Norfolk Southern announces her doctor, Christopher, Jones, Esquire, as Knight Templar in charge of toxic cleanup. Given his recent completion of the SUNY Purchase online class. So, you spilled your chemicals and Knighthood by the Freemasons of Troy Ohio, this year, headline of the week. The governance data that can impress investors and why? So there's a whole story about the data that investor governance data that should impress investors. And it includes all the governance State as they currently have. But nothing about the, like the directors themselves and how they actually it says you should consider their skills. But they have that. They have that data. They have the data, their skill sets. No, no no. But but we do, we actually, by the way, he left something out. I heard that Dr. Chris Jones. The new safety committee chair. A nurse I heard. He's also been elected emperor of eight galaxies. Really only I like the idea that he was knighted all. So in the last wow that's not nothing. In our Norfolk, Southern claimed, the cost of the spill was a headwind on the road to Casual indifference, but the spill would be paid for with funds. From the Third Doctor, Christopher Jones, scholarship fund for resource constraints of the week. You see what I'm doing here? Yeah, I'm doing. I'm going a lot of callbacks. Yeah. Norfolk Southern has to pay for clean up a fiery, Ohio train around him all by itself, federal judge rules. Like, like, they could do it. Go fund me, like, Doug down the road. I don't get it. I don't know it. You got 50 million dollars and then finally, for my first segment? Yeah. the dogs, however, have a keen smell for bulshit and are currently monitoring Norfolk Southern's board on a full-time basis, headline of the week, Ohio's. Legalization of marijuana is putting nearly 400 police dogs out of work, who can't unlearn the smell of weed. Oh you know it's just maybe Black Rock can use some of those dogs too because if you smoke a little weed before you do your engagement, maybe it'll help spice things up a little bit. Do you think, actually, what would you vote for management more or less? When you're stoned, what I want to know too is like you're warning of resource constraints but aren't you? The aren't they your resources? Like I don't understand. I just don't understand what she's talking about. I don't know. They could take some of the money they're getting for the Bitcoin expense ratio to in the ETF. They launched it maybe do it less resource constraints. All right, come on, let's get back at Sam Altman. That's my next subject. I have him in my next thing, too. in our, We've fired the women on the board that tried to fire you. And then replace them with three other women who hopefully you like better. Is there anything else you need another brown sugar oat milk cappuccino headliner of the week? Open AI has full confidence in CEO, Sam Altman. After investigation reveals, he was fired as a consequence of a breakdown in the relationship and loss of trust between him and the prior board. Yeah, well that's all you know, so there's saying oh it's fine like whatever. Well, we fired them, the people who were hired to oversee you so this is nothing to see here. I like that. The investigation says the board lost confidence in you but it's all fine now because the board does the new exist anymore because that board on the new board that you like is here and the board you chose is here and they this is the crazy and stupid. As I really I gotta say I give you know credit Wilmer Hale. I think that was the law firm that conducted certification. That's just terrible. Yeah it's real it's not that great. Yeah, not great governance in our Does anybody know how to fire Spain? Is Spain, a woman headline of the week could be actually Spain tells Sam Altman and World coin to shut down. Its eyeball scanning orbs. Oh, now can Sam just can they can he fire Spain? Because I will, they don't agree with Sam. Spain is not getting a board seat. That's that I do know in our, does anybody know how to fire. The state department is the state department a woman. Whatever. As long as she has no deep expertise. In AI, like our three new women Washington directors, headline of the headline of the week that was hard. That was hard, I don't know. You know what I'm saying here? What? I'm trying here's a joke. Now I'm trying to say is is that the state department is warning about the dangers of AI? And yet the new three women appointed at opening. I have absolutely no expertise in AI. Unlike the two women who were fired for doing their jobs, and here's the headline that prompts that stupid joke, State Department. Commissioned report warned AI, could be an extinction level threat good. Let me tell you, quickly about the new women, they appointed to the board at AI open. AI to appease Grandmaster here. They are instacart CEO, Fiji SEMO. She was a former former VP of video games and monetization at Facebook. She has an MBA, I don't know why your poo pooing this because lawyer else, how else are they gonna get their groceries lawyer? Nicole Seligman, she was formerly of Sony. She defended all of her North back in the Iran, Kent Contra hearings and a lot of Sam Altman, Ollie, North, and Sue Desmond Hellman, the former CEO of the Bill and Melinda Gates Foundation. She's a medical doctor who was the president of product development at genetic. These are the three people they know nothing about Ai and no no nothing about the potential. Threats, that could form an extinction level event, according to the state department, they know nothing about that stuff. I love I love though, nothing former CEO of the Bill and Melinda Gates Foundation is going to be managing the Microsoft investment, and why is there a connection between Bill Gates and Microsoft that I'm not aware of think so? But I have to check the rest is oversight. This is oversight. And finally, in our who needs the onion, when you have real life, headline of the week, this is a crazy one CEO dies when her Tesla drives into a pond. Yeah, I don't like that. This is a crazy story. This is Angela Chao, who is the CEO of a Chinese shipping firm called foremost group. She's the youngest sister of Elaine child, the wife of Senator Mitch McConnell. Yes, she died. Yeah, and they reported that one of the reasons why she died is because her car. Her Tesla was Submerged in a pond and because Tesla creates cars with windows that are almost impossible to break underwater because Elon Musk is constantly paranoid and all his cards have like bulletproof glass or something. She was unable to, you know, you're unable to kick through the window. If a Tesla is submerged also they have a hidden mechanical door, pull because Tesla likes to hide important emergency releases and stuff because why because deregulation doesn't force you to do these things. And Elon Musk doesn't care about these things. And anyway, I just thought I wanted to point out this crazy story. This is crazy story. One of the craziest CEO, Tesla stories, I don't hear a lot of CEOs, death by car in pond. That's not calling this. I'm calling this one suicide by deregulation. All right, on that happy note. Let's finalize. This is just my mood today. My final few on. Oh, nice segue, currently autocorrects to a hole. What's the problem again? Headline of the week? I am not a typo campaign, urges Tech Giants to correct their autocorrect systems in the name of inclusivity. Hey, I can I apply this one as a person who has two names that constantly get autocorrected? Why can't these stupid systems? Just learn a bunch of proper names. Well, why is that hard to feed? And it doesn't have to be just the top 11, white names, like John and Matt. No offense. Why can't they feed in a bunch of names, like Damien and whatever else? Well, that just sounds woke to me, but they did. Is it, is it really that hard to find it? The record, the first name, the campaign is happening. Largely in the UK where, like, you have names all over the Spectrum and they said, they're 40% of children in the UK's names. Autocorrect to something else. Yeah, of course, because they allow non-white people to live in that country. That doesn't even consider American names like, in these coding rooms. Is it just like, hey, think of some names? What about John? Okay, John Works. What percentage of the coders are? Not named John Gus Paul and I would love that day. I would love that data. We're talking about and our hey Ma. Oh, I like it. Good, he's back. The Jews are worse than China. Tell, Dad headline of the week. Trump says, without tiktok Facebook and Zucker schmuck will double their business. You know, I tried for like a half hour to craft a good joke about the story, and it's just depressed me for a straight half hour. I feel so caught. He also called Facebook enemy of the people. I mean, this is straight out of the Hitler codebook. Nobody but you know what I love about this. That we only talk about tiktok in. Okay. And that way? And finally someone is using like, dictatorial language about like Zuckerberg. Okay. Something Lisa with anti-Semitism. But yeah, we have to call enemy of the people. Anti-Semitism. Yeah. And go into the fact that we are, we are making equal tiktok and Zuckerberg. They are both States. I guess the backstory is that this is a man. The former president, Donald Trump who formerly was a who wanted to ban tiktok put supposedly met with some billionaires who invest with tiktok a few days ago and then suddenly changes mine. So I shocking, it's shocking. Yeah. In our Linda Alvarado who was on the 3M board for 17 years and on the nomination committee, announces her friend, Greg Swinton from the Lennox board, really loved sitting on the L3 Harris board with William Brown so they hired him headline of the week. 3M to appoint. William Brown is CEO, Matt. We've obviously been running a company together for far too long because I this is another one, another had that I worked on for 20 minutes. I went into our data, I went into our platform. I was, I would try to construct a joke with there's another Direction on the three on board named Ted Brown, and this is Bill Brown, I was trying to create some, they only have three women but they have two men with the last name of brown, trying to construct some clever joke. I fail. So I gave well I'll say this the 3M board is one of the most connected boards in our entire database. Those are people just in board interlocks who know everyone in like they're an American royalty board. So as soon as I saw that Bill Brown was announced the CEO. I thought he must be 100% connected to somebody at 3M. There's no other way. Yeah, and all. So black rock head of stewardship, I know your research constraint, but so you could maybe replace a couple of your dollar. A team with our data set, you'd also learned that that men named Brown. Now have more influence on the board of 3M than all the women combined, okay? Yeah, men named Brown, that that's be a good name for the company actually. In our Sam Altman responded. Oh that definitely wasn't me headline of the week. AI company defends robot after its accused of groping women, a woman on camera. Yet another headline that I tried to make a joke of and then I watched a video of this and I got I got again, I got super depressed and I said I did not hit play on the video, I just couldn't, I couldn't it's strange. Yeah, it's strange. The robot actually lifts the back of the woman's jacket. It's really odd. It's really it's creepy. I wanted to use this as my segue into my last one really wrap this show up. Well, can I just say one thing before you segue is that? This is what the man in charge of this robot said, he said that the incident represented, no, deviations from expected Behavior. He's basically saying hello world, these things are programmed by men, what do you expect? Think it's gonna not harass women and it's not going to destroy the world. I love, I love that. Trump is making Zuckerberg like China and man who runs AI company is saying, AI robots are going to be an asshole men. That's what they're gonna be. I like that. Yeah, go ahead Segway. Let's finish this out within our Sam Altman rejoins, the open AI board responds that one definitely might be me headline of the week State Department. Commissioned report warns AI, could be an extinction level threat. I use the same headline as you. Yeah. But you see how the one before, this wasn't Sam Altman. I actually struggled because I say I'm Allman is an out gay, man. He just got married. And I was like, can I make some joke that isn't hideous about like, well, Sam almonds, not out there growing women. This is not about Sam Altman. I I'm not a necessarily Auntie Sam Altman, but what I'm anti is a struct That doesn't provide oversight of its CEO, which is required in its bylaws because the bylaws predicted that AI might fucking destroy the planet. So, we better be careful about this because somehow I do not trust Sue Desmond. Hellman, the foreman CEO of Bill and Melinda Gates Foundation to oversee them all ones extinction, level AI event or how about a lawyer, who worked at Sony? Well, it's true. I mean, but she did defend all over North from extinction, level events. That's it. That was it like a lively event Lively? Understated. We're not, I guess we're not resource constraints constrained. I know we still managed to do our show. Yeah, Black Rock, by the way, we cover 9500 companies with 30 data points on every single director. 220,000 directors with four people. So yeah, resource constraint, yeah and if you have any problem with some of your staff maybe that maybe they're just kind of creeping you out. Something get rid of them, hire us as consultants. You could probably save money. You could, you just, I mean pocket, even more resources for something else. For a big pizza party or something. We know, hire us the former instacart CEOs, no longer on your engagement team because she just got the job at open AI on the board. So why don't you replace her with us? That's always saying that's it. That's hazelnut relish. I am your analyst home at Ms. Carti, we are free float. We will be back on Thursday, proxy countdown. Oh, my be the biggest cars count down here? We are covering Disney. Oh, no. In the Tryon Blackwell's Disneyland. It's the proxy. Orgy is what it is. It's too much. And then on Friday, we'll be back with another rap of the week and yeah, with are the data Queen until then good. Bye.