Transcript
Live from Matt mascardi Moss Menagerie and Emporium. It's a woke data. Wednesday edition of business pants. Join is always by the lurker and the madman. That's really what you guys are. I don't know why that was a very radio entry like morning radio DJs Yeah, exactly. And today's particle, defraud defrosted bag. What the hell is that called April, 6th 2022. Anyway, doesn't matter what I say there? Oh we got a JP Morgan proxy review. I know. Matt hates those and ready for this. We have an IFRS. I s s b draft sustainability, linked disclosure rules Oh, I think I just broke three ribs, saying that and we have a game, a union game. That's me. I just said for the game. Can we just jump to the game? Let's get you want to go. You want to go rant first? You want to do? Proxy review. First, what do you want to do? Matt? I'll do a rant. Let's get it all the way, do it. Um, it's with bated breath that we were all deeply awaiting. The IFRS issb draft sustainability, linked disclosure rules, which are now open for comment. Yes. And they drop like we're coming. This is good. That's right. We send these. We should send this to somebody. What the comments. Yeah. Why don't whatever your rant about to be? Why don't we send it to them as our comment? Done. I will I will submit this as a comment it dropped like a Yeezys record last week, which is to say that it dropped. And people said, wait, they still make records. What the hell is that? Who cares here on business pants though? I'm business pants woke Wednesday. Will do the hard job of reading and translating the 17-page draft for you. That's right. You're asking yourself how the SEC could put out a 530 page. climate disclosure draft, but I first put out a draft covering all sustainability issues and it's 1 7 I can answer that using the business pants words, synthesizer, 9000 x. Oh, good, we updated. Nice. I love the updated X at the end. Now, it's an X. One way to keep your draft short is to be incredibly focused. There are 4,500 words in the IFRS report and fully 111 of them are the words sustainability. Yeah. 113 are related. 84 are Financial 78 are risk and 70 are opportunity. That's right. 10% of the words in the document are the phrase, sustainability, related, Financial, Risk, and opportunity. Wait, what? In 10 words is part of that phrase that is correct. But don't worry if you do a close, read one thing, you'll notice that isn't anywhere in this massive 17 Page, document is the definition of the word sustainability. It's not in there anywhere, they don't Define what it is. Oh no, I'm sorry. The do I, if you squint you can see it. It says, quote an entity is responsible for deciding what information including metrics is material to its general purpose financial reporting. Oh, it's a sustainability. Is you figure at the fuck out? We have no idea. You just tell us, you tell us whatever it is is what it is. It'll be fine. Contrast that with ifers, very own simultaneously dropped. This is a double album. You don't get a lot of double albums and you know, double albums. Yeah. This is a double album. This is. This is like their Smashing, Pumpkins Mellon collie, remember that? Yeah. They dropped the climate disclosure draft at the same time which was a much more robust 60 page draft. So a lot more there and which they said, companies must disclose carbon emissions carbon intensity estimation models internal carbon pricing, physical climate risk to facilities, Investments included at adaptation reasons, for those investment, who's in charge of looking at all those reasons, you know, actual disclosure about stuff. That's what they put in that and you can see the problem. Climate change is easy. Stop spewing shit. Otherwise we're all dead. So tell us how much feeling you're doing. This is sustainability. Is what the hell? I don't know. You tell me. But if you do have an opinion, do like business pants and drop your opinion on. I first buy July 29th of 2022, feel free to give them your definition of sustainability, which Investopedia defines succinctly, as quote, the ability of something to maintain or sustain itself over a period of Time problem solve, wait. That's our five first report, but there must be well. Okay, okay, there wasn't so ranty. I got to say like, you, I know you just went through that whole thing. I hate everything about that, and I just, I nodded, and I said, yes, Matt, rant, but IFRS anyone care to tell me what that is even a little bit. I didn't even know. As I first, I was I first is what we in the biz call it I first is the international financial reporting statements. Standards standards, International reporting Financial. It is you know what gaap reporting is General. Except generally accepted accounting principles. Yes Basically these are the organizations of accountants who tell you what a company should disclose in the balance sheet in those. I regret asking that. Let's go, thanks for that. As you put it a middle winded rant. That wasn't so ranty. Yeah, we were expecting a bit more negative. All right, let's get the JP Morgan Matt. This is on. Oh, yeah. Because I like to bore him and he covered Jamie dimon's letter. So I'm gonna do a service to all ESG analysts out there. I'm gonna give you the actual an actual product review. Not the BSU learned at your, silly, desk job, this is how you do it. Okay, JPMorgan first of all who owns JP Morgan. Some lady named Vanguard 9% some dude, named Black Rock 7%. The rest is a mystery. In other words, it's not a woke dictatorship. Okay, this is not snap and Evan Spiegel. All right, so get over. Okay. So let's talk about the alternative democracy. That's what we're here for. Let's cover the 2021 vote. Some near misses allow shareholders to act by written consent. 47%, yes, racial Equity audit and Report 40%. Yes, Independent board. Chair. 48%. Yes. And political and electioneering expenditure and congruence Rapport. I like saying that 30%. Yes, okay, I want to get that. Yeah, congruence report. That is the conservative proxy. Okay? Really. That's the that's the template for the conservative proxy, the national board of public policy. Big yada yada yada. Yeah, but I want to, I want to go back to this. I want to go Black Rock and Vanguard a little bit because I checked their their voting records, a check there, some of their voting principals. Here's the thing is that there were okay, Vanguard was against all of these. So with Vanguard support, we'd have a slightly different. JP Morgan BlackRock was actually Four. They've voted for racial Equity audit and report. I don't know how that happened. Seems like a fat fingered vote but what I wanted to talk about is the independent board chair. They're both against it and again, with their support at what a past Jamie dimon is the CEO and chair, both Vanguard and BlackRock State explicitly. They let the board decide these things. They don't want to get involved except in cases where there's not a lead independent director. So what's going on here at JP Morgan? Is that their lead independent director has been there for two decades Okay. He is also according to at least msci and probably other providers, he's not considered independent of the of the board of the management. Oh, really, so this is, this is new to me so BlackRock and Vanguard I guess don't listen to msci Because if they believed msci, that he's actually not independent for management because of related party transactions. They would certainly vote to for that, they need an independent charity. Am I making sense? Am I making a sense here? Is he Okay, I assume his name. Joey Romo. I wish it was Germany. His name is Stephen Burke and first of all, Emma ask you, he makes 453,000 dollars and any planet that you've ever been to and there are several could that be considered to be, could you be independent if someone paid, you $453,000 dollars, how could you be independent of anything? I mean yeah, aren't you a company man? At that point, I'm just at that point. I mean it's just that's, that's a hot even for normal board members, that's high. That's a lot of money. Yeah. That's its high. If you say, average added about like, 200 300 thousand, right? That is right. That is correct, this whole proxy. Smacks of Jamie dimon family. That's all it tastes like, Okay, Stephen Burke. He's leading independent director. Again, he's been there for 18 years along with who else has been there for 18. Exact years. Exactly. That's Jamie dimon up. Both of them happened to be to get NBA's from Harvard. Jamie is also the on the board of deans of the Harvard Business School. I don't know if that's enough of a connection, but when you've been on the board together for 18 years, it might be enough of a connection. There's a third guy, James Crown. He's also been on the board for exactly 18 years. And he's another individual that the Msci does not consider Independence. So this is what's really going on here. So does, JP Morgan have any independent directors? Look, they do have some independent directors, but I only bring this up because I want to know. I want either black rocker band Guard to call me personally, That'll tell me why you wouldn't support this proposal because this is clearly a company you're supposed to do your due diligence, you're supposed to look into these matters, this is a company that has a fake lead independent director. So I want to hear from you, all right? I got a question for you Damien. Well yes because you did this once upon a time. Um I'm doing it now. Oh dear you said that. First of all it's not a woke dictatorship. Right? Because it's doesn't have like a single voting shareholder. Who owns everything. By and CEO board chair, which arguably means that they're highly dispersed. Like, lots of people own them. So the, you can't Corral anybody like that, anything and then there's just Jamie who's a little King at the top. So is it any better that they're not a wolf dictatorship if their CEO board chair and there's a big CEO fettish except that unlike if you gonna compare to say, Mark Zuckerberg, the board does the board can act as a counterbalance here? No. I mean, I know they're probably all scared of the chief meal or kneeling on their paycheck but no, but they technically do. Have a say. The, the counterbalance appears to be the board said that Jamie dimon had to take like 25 million dollars in pay. And Jamie dimon said, well I can't refuse because I might offend them and and Jamie dimon is the chair of the same board. He can't offend. Yeah our our metrics suggested Jamie dimon has 38% influence over. The best seems load basically which basically means he is the board. There's no so I like that we use that kind of a number, which is a 30% because I think that generally speaking in most jurisdictions you're considered to have control of the company if you own 30% of the voting power. So maybe we should start looking at that influence score in that way. Like if you're over 30 you basically have control the board right? Like yeah, it's I was saying I like that a lot. I like that. You you're watching live. Are indeed not that anyone's watching or listening or not that your company does R&D because you're too busy. Sell! Sell, sell, sell! Sell! Sell! Sell! Sell! Sell. Sell sell! Right. So let's get, let's get to pay. Captain Jamie's pay more than doubled, he's up to 84 million this year. He was only at 31.7 million this year. Why? Because he's getting a 53 million dollar option award that's 1.5 million stock options. All right, back in the day that Matt alluded to, we used to call 500,000 options of Mega Grant. That's how we used to make fun of them. We called it a mega Grant and we would grind them down with our horrible, but your words, so what's what's 1.5 million? Then what does that is it a triple Mega Grant math. What is it a mega mega mega mega Grant? Or is it a double Mega Grant with mega cheese? Which do you think guys? I think it's a throbbing Grand. Okay throbbing so he congratulations Captain Jamie finally, let's talk about Hey, we don't want to talk about. There's more shared. Proposals this year, I'm gonna tell you, they're all gonna fail because everyone's against them. We got the, I think everyone should be rooting for political electioneering expenditure and congruence report. If you see the word congruence report on a proxy, that is a conservative activist who's hoping that they can change companies by giving you more disclosure. So go for it. You analyze his letter, does he talk a lot about climate change? Because he has two opportunities here. There's two different proposals, one about fossil fuel financing. And what about setting? Absolute contraction targets for emissions. Why would change did come up? Yeah, in this vague way that it was like background noise to the things that they do. I believe in my word, cloud, climate change appeared, I think three times. Okay. So they don't care that. Well, look that aligns because the board is against all of this alternative democracy shocking. All right. Finally, let's wrap up here. I want to talk about the board and I'm going to talk about it because JP Morgan actually has a very fun board diversity and experience Matrix. So JP Morgan actually is kind of a woke company. I Ron DeSantis would hate this Matrix. Okay, first of all race, they list Seven races including American Indian or Alaska native two or more races, Hispanic Latino but really you only need two races at JPMorgan that's white and black because there are nine white people in one black person. So Maybe the ways to make on this Matrix, I don't know, gender. Gender here's where Ron DeSantis really hates JP Morgan and I think they should go after JPMorgan. They actually list non-binary as an option. Are you shocked? I'm a lurking. A little bit, not totally, but little Like all right. What kind of goes along with our idea of Jamie Diamond. Chief Neil and extreme is he's really the woke. He's the woke, he's the best performance, you know. Right, exactly woke performance artist. The I never seen, I don't know if I've seen this before they ever category in their proxy statement for lgbtq plus, okay. And let me tell you you, that's okay. You have I don't know if you read my notes map, but you're onto something, no, because here's here's the reality of that is that according to the board Matrix of the ten directors, all 10 are heterosexual, big shock and zero are lgbtq plus, but there's no queue. They don't even have an option for kids, that would have been. I might have been a one and they really screwed it. Finally gonna wrap up this, I'm gonna wrap up this very professional proxy review. And yes, I think everyone should call us. If you want the companies that you're analyzing, there's actually a category for military status, out of the 10 directors, all 10 of them, check the box, not a veteran. Are you sure what a matrix, what a matrix nine white people show? Almost 50/50 male female, nothing else to see here. That's literally with a matrix. Yeah let's play a game. All right yeah I want to play games. Make me happy. Okay you want to game I'll give you a game always so Elon Twitter nonsense has really taken over the news and has totally obfuscated some much more exciting unionization news. So we have been covering that as much and I wanted to get to it. So this segment is 100% inspired by one three times Starbucks. CEO, who said the following in a recent Starbuck's forum Here's where it gets a little because I've been coached a little bit. But I do want to. Talk about something pretty serious. We can't ignore. What is happening in the country? As it relates to, oh no companies throughout the country. Being assaulted. In many ways. By the threat of unionization. Oh, salt to get you up to speed with what's going on. Union wise. I'm going to make Matt and Damien, look, stupid with a round of Union assault, trivia. Alright Union assault. Yeah, double Mega. You can't find anywhere else. Trivia. Here we go. We're starting. We have two categories and seven questions. All right, the first category is Starbucks. We're going for Starbucks first, here we go. Question number one. In the store books, unionization effort, how many stores have unionized so far? I should know this. I'm gonna say 8 cover this, you know, I was gonna say, hey, but just for play the game, I'll say seven. Oh, that Is just unfortunately if you had gone instead of going down one day, if you had gone up one you would have been dead on it. Nine. Yeah I can't follow the map. I was 400. I don't understand that. That's you can't get yourself in air horn for my game. I can I just did. He also heals just initials in the document that he won the play. That was me. That was me as usual. Emma signed in with Matt, you know? Okay, yes it is. Nine stores thus far. All right, question number two. How many stores have fails to unionize so far? Build. Failed how many how many votes have lost? How they, how many two matters? Two one, one in the Buffalo area, I'm gonna say one. Map, because Damien is correct. Just wanted to buy one is correct. Won the Buffalo area. Correct. Yeah. So there were two in the Buffalo area happening at around the same time. One of them passed with flying colors and one of them I think nearly missed it. All right. Question number three, the nearby Holocaust blanket I was gonna say because they got a bunch of free Holocaust. They got the Holocaust weighted blanket so they're very excited. They decided not to all right. Number three. How many stores have filed in an effort to unionize, Countrywide, United States? Only, I'm gonna guess first, because I have no idea and I'll Mac and I'll let Matt take the point here because he can think I'm a moron. I'll say, 50 arbitrary guests. Oh yeah. I was literally gonna say, like 40. Yeah, I'm gonna go with 40. It's a lot. Who are you? Buzzing Both of you, not a lot enough, it's 160 across like 28 States. I still take that point. Really. Is it that, is it. Wow. So it really is an assault. They really are assaulting that billionaire. They're assaulting him. They really are. No yes, no. It's a lot. It's intense and it's more than I think any Starbucks executive could have possibly predicted, which is why people are freaking out like it's why I'm freaking out every time I go through a drive-through Starbucks and the Barista talks to me, I'm like, why are you talking to me? Like, I don't care about you. I don't want to establish a relationship with you. How dare you first are out of control? They're out of control. They are assaulting me questions, they're humans. Why? At Howard Schultz's like Town Hall speech, that someone not get up and slap that man in his face. Oh, interesting. Interesting. That's what needed to happen. I like this. All right. And finally, in our Starbucks category question number four, we are going to multiple choice. So, I will be giving you three options at the end of this question. I get what I've heard the concept before. Yeah, I just wanted to make sure this game is very confusing for you. So one location, just voted to unionize it is the 9th location. It happened a couple days ago. What is important about the unionization of this most recent location? One, it is the first ever Starbucks location in Seattle and they are the ones to unionize two. It is one of three Starbucks roasteries or that means or three Roastery. This is the Starbucks location where an executive slept the floor. It is like the floor. Sweeping location like this. I think, I think, It's the first ever Starbucks location in Seattle. That's what I think that is correct. I think that things too. Yeah. Oh, you are both correct. Tell us. You can't, you can't sound effect too early. It is actually number two, it is one of three Starbucks Roasters and the reason that this is important and yeah, why, the reason why this is important above both one and three like those are single stores. The reason this is important because they have way more employees than normal Starbucks. Every Starbucks Roastery has like 100 plus employees. Okay considered more corporate locations. So the one that just unionized is the one in Manhattan, actually. So I have a unionized Starbucks Roastery. Yes, it is. And so, it's a big deal that they can get that many employees to get a location unionized. Oh, okay. Thank you. All right. Moving on to category number two. All right, of who was being assaulted by unions? Amazon yes Amazon here we go. All right we're starting off this round with a multiple choice question. So we all know Chris Smalls has made. Headlines, as the main organizer of the recent United Asian of an Amazon warehouse in Staten Island. What is the name of his best friend from the warehouse? And co-organized, I'd better just his best friend in general. I like from the different from that would be, but now I tried. Yeah, it's the same. Yeah, I don't know. Yeah. All right, Donna. Hey worth, I don't know why people up. Steven Lawson to Marcus Green. Maybe three Derek Palmer, maybe Marcus sounds right. Doesn't it? That was my guess. That might be being racist, like, I don't know. Even know I racist. Marcus isn't isn't racial? Are you talking about? Did we do a study where we where we analyzed the the first name to directors and a proximate guess whether the race was? Then we do that, that's true. Yeah, and Marcus and quickly names. Okay, I can't do it. I will go, I'm gonna go Marcus Green. Just to be different. I'm going to say, Derek Palmer, not Steven lost. It is Derek Palmer. Not correct. Derek Palmer and I just I came across Derek while I was doing some research and I just feel the need to give him some love because I feel like Chris is getting all the attention but I want to have come on our show. Thank you. So Derek. So one of the interesting things about Derek is He Kris together. So Chris got basically like ditched by Amazon after doing a walkout and he was part of the organizing and they called him. Not articulate or not smart and Derek still had his job at the Amazon warehouse. And it was together that they decided that Derek instead of quitting was going to stay working for Amazon during these unionization effort so that they could do it from the inside. I like it. Yeah that's why I have friends and that's why maybe like and that's why maybe it's bad as a corporate policy to make fun of the individual. The gentleman who was trying to organize against you, maybe it's not good to rile him up. Right. So um, here, you're also gonna like Derek because he brought baked ziti to many a union where she brings it to here right now. I'm starving you, I'm sure it's delicious. All right. Should I chose Pizza? What Logistics of that? It's true. Where the that's a heavy pants? A terrible dish to bring, you gotta bring a dish for you? I have silverware. Sure, it's supposed to be hot now. Yeah. Okay. What happened at the Alabama Warehouse? Who's workers were also attempting to or to unionize version, okay? Recently again, there were both right, they're rebooting, that's it. I know this for a fact that the voter turnout was was depressingly, low, it was like 30% voter turnout. So does that? Do I answer that? Yeah, you can answer that. Okay, fine. She's an open energy question, there is an open ended question. I'm gonna see what Damien said, okay? You were both pretty much right? So they the unionization effort failed and they are going to be revoking. And the reason I'm particularly giving it to is because it was a very tight vote and a super low voter try. I think it was like, 39% maybe yeah, what is this America? Nobody votes anymore. Ha ha. But they also ended up losing despite the fact that they were better funded than Chris and Derek, they were more traditionally organized by labor organizers but they were trying to organize from the outside and that apparently did not work nearly as well as having the workers had up the effort themself. And let's be real, I mean from the perspective of Union versus Confederate, I think the union has oh my God stronger woke thoughts right? I mean I'm saying, convincing awarehouse. Now I do something. Liberal is not going to be easy. That's not an easy, sell not easy, but that's where some of the most amazing labor organizers come from because they are Alabama Warehouse. I don't know if I agree with you, we just Discriminated against the South here. Yeah, on discriminating. I'm just telling you look okay, no never. All right. And finally the question number three, what is Amazon's new union busting place? They're going to They're gonna, are they gonna prevent you from texting? They're eliminating certain keywords, like, I know there, I the only one I could think of is I don't understand it is that you can't text the word restroom. But there's also another one, like, like Union, probably or, right? Or organization? I am I close. Am I close, Matt? Here's my answer. Kill Everybody. Everyone has to wear a Jeff Bezos costume. I would only Damien. I'm gonna give it to you. I think actually, um, you're very close. So, internal documents got released that showed that Amazon is planning on using an internal messaging app. So like an Amazon based intercompany messaging app, that will ban a long list of phrases and words, I want to get that list. Yeah. Include this is only like half of it. Okay, not even I hate Union fire terminated compensation pay raise bullying harassment, I don't care. Rude play Flavor. So my whole house like Coalition Unity representation that's like not even close to all of it. The program itself has not been approved yet but it is looking like it is on its way and I don't know. We'll see how it goes. All right, that's it. Thank you. That was great. Thank you. That was a game and that was some, my first Related information and I think there was a proxy in there as Damien and Emma lurking. I'm at Skyway We Are People Media. We'll be back tomorrow with more business pants, goodbye