Business Pants – 2022-07-06

Live from America's pre-eminent woke data. Wednesday. It's woke data. Wednesday here at business pins. Mega University joined as always, by Emma on Trend, lurking. And Matt ESG boy, McGarvey. I don't like that. I like his this. I didn't think you would. I'm Mid-Atlantic cod in today's gummy worm build bag of ultra aggressive nuggets. Called July 6th 2022. Putting a cap on our proxy season, which I'm sure you're thrilled about Matt. Oh, yeah. Now everybody loves that. Sick of that. Yeah, another ESG rant from our ESG expert. Do you have a rant? First, I'm just gonna, I'm just gonna fall to pieces what I'm going to do. You're crying and Emma's trendy dumpster died. Our first repeat segments, the first thing that Matt's been happy about all day. I know that it does make me smile. All right. I guess that means you have to talk for. Yeah, like a while. About I spent some time where the where the Matt's favorite nerds hang out and that's the, what is this? The I should have the full name of this. It's the Harvard Law School Forum on corporate governance. Whoa, so let's look at some of the numbers. I know, I mostly pulled all this because I'm trying to tweak, Matt, a little bit. Yeah, it's trying to ramp mode. It's really just trigger matte day. I'm gonna go all the ESG, all the ESG votes at public companies. Let's start with E environmental proposals median, vote result. You know, Matt. It was hovering in the mid-20s for many years last year. It shut up to 46% somehow. And then now this year it's back down to mid-20s what happened last year. Did I forget what happened here? Yeah, BlackRock voted son last year, then they got yelled at by Texas and Florida and now they've voted the last. This year, your tribute, that Spike last year directly to block Rock, we have proof of this really know. We don't have proof of it but I do think there was like, I mean, like there, they have to vote for more look. When you see any vote change? From where it's been. I mean, basically, right now we're voting, like, it's back in 2013 again, right? Like, that's where we're at. Yeah. That's well to be more precise, 2016. How dare I mean 23% versus 26%? Come on, it's about 2013. All I'm saying, is that I think as you go through the common theme is going to be. Let's turn back the clock people. Let's go back to the good old days. And this is why, and this is why I'm doing this story today. Let's go to social proposals. Again, we're down this year and I get the uptick last year. I think it correlated with the black lives movement. Movement? Wait, yeah, the black lives matter movement matters. Sorry, I think that there was a there was enough people who voted who Their their the energy was in the room. Let's just say because it happened in the spring, and I think that's why you saw go. So it was at 26% in 2018 by 2021, was up to 32%. Now, as Matt pointed out, we're back down. So, we're back in a 25%. So I so you could say that the anti-walk movement is working, but really, I think just it's the energy of the woke movement, sort of his They don't care anymore. I don't go. Would you all go? It's now we're all acting like it's 2013 again, it's slightly. I'll say it slightly concerning because I there's no reason for these numbers to go down Hey, we're 3%, better than 2013. Let's give it a rest. That's true that positive way of looking at this. I divide the number of years since 2013. I like that. Let's go to directors. Look at the G part. The board. Can I just tell both of you? If you're looking at the at the the document the outline I put together nothing changes here. No yeah crazy. I mean there are There's always some always some slight movement but really nothing. There's no there's no real effect in this area. There's just really I don't. And I again I don't really maybe with our new data. Matt people will start to The first time they're alive, I'll start to understand. How powerful certain directors are if you want to get angry but but no one, I don't know, just directors are not really held accountable for things. I thought I can say, no, I would we do that. Do what, what, why is this not called trigger math. Why is that just not the name of this whole segment? Okay. Let's look at gender at board votes. Uh, there's always been slightly more votes against men, like one to two percent. Anyone want to weigh in on why there's more know, a slightly more votes against, I know, there are more men to vote against You know, you're you're math is is you know in la la land as a percentage. It's it's the movement. You know 30% by 2030. What it was like putting women on boards has been a fairly sustained movement. For the last. Okay, five years, I would get let's wrap this up with Sam pay. I will say the same thing if you're looking at my little chart here, nothing changes. So and the reason why I decided to go run with the story today is it was to refute all this anti-walk nonsense because There is no movement anywhere, we can't see movement there. So that's a false. It's a false stage, you're standing on, right? There's no Except for the blip and environmental vote last year, there's nothing else going on. There's no explain to me how when we have more data than we ever had in the history of investing kind. That we actually see Zero changed to the way. We what we ask companies to do and how we hold them accountable so much. So that if you notice this year, iss's votes, in the Russell 3000 are at their lowest point and the last against, you know, there they are, they are agreeing with management more now than they were in 2016. Is that really? Is that really true. Is that really what's happening? We agree, we all agree. That's where we're at. That makes me sad. Wait, I mean when you are you reading that data correctly? Yeah, the frequency of ISS against recommendations has gone for the Russell. 3,000 from 12% in 2016, to 10% in 2022. I think what you're seeing across the board and 2022, is there, there seems to be a slight anti. Woke correction, right? They've they've, they've frightened a small percentage to no longer be against corporate things. That's what we've seen. No one thought they were woke before. Stop correcting something that wasn't wrong. If anyone here, oh, if anyone cares, we had the data back this up, nothing is happening. Don't worry. The same ISS is supporting the same amount of say on pay votes that the shareholders are really, the only change in recent memory is the financial collapse of what 2000. When was that eight? Yeah that's really the only time that something significant changed I would say don't worry the world is still on fire. Women's still don't get paid as much as men black lives. Still don't matter to most of you like it's all fine. You're just you don't have to freak out and correct something that wasn't changing if you don't believe us if you're from the left of the aisle, right? Or the aisle reach out to us and we'll prove this I'm not sure we're not just saying if you go back to 2008 for a second while this might be a pathetic statement was that not the last time there were consequences for any actions taken the consequences were like pathetic. But there were some for some people who were involved. When there are solidated the banks in the larger Banks. Something I guess I don't think really did do a thing but if there are no consequences why is anyone changing? And of course, I can't understand like we know that CEO pay ratio has gone up Since they've actually been disclosing them, CEOs, get paid more on average per me on against the median employee, then they did when we disclosed it. You know, what they were afraid of before they disclosed it that it would tank CEO pay and it would be hard to you know replace them and you drew in the competitive environment for CEOs and this day is not that accurate and what do you get? It's gonna look outrageous but it's not that bad. You know, what's happening? It's gone up, it's gone up. Oh yeah that's what I'm worried about at the competitive Miss of the CEO position that is one of my talking about what do we talk about? Yeah, and I'll say miraculously the average vote supporting Sam. Pay packages in the US is just hovered right around 991% for a decade. It doesn't shift. Uh speaking of no consequences, I mean he didn't give me a timer so I don't even know how long I'm allowed to babble but let's move on to something more important and that's our own data. Yeah. Board saberman Metro league. So our data is becoming is getting more and more into shape. Oh now she's gonna put now, you got time to sell our company but our data is getting more and more into shape. We're gonna have a product launched soon. Right? Matt. I don't want to speak to any of that. I just I'm spending time each week looking at the data to see what interests me and here's what interests me this week. All right. You know how people, you know how I'll say I say people. I mean, I'm using that term. Very nice. I will call them chuckleheads or idiot, you know how they like that. They come around and they're and they kind of say like, oh, you know, Jeff Bezos controls Amazon or Tim Cook controls. Apple blah blah blah blah. You know they just say a thing. Yeah they say but you know what? I was looking at our data met and Uh, what really stood out to me is that we can now we can quantify this and it's like quite beautiful how well it works. Like I'm so the reality is is that at Amazon Bezos really does control shit according to us, according to the data. Yeah, he does. He he wins that his in and you can speak more than numbers, but I'm gonna tell you overall he represents 54% of the power at Amazon. Yeah. Just think if you think of the Amazon board and let's say the Amazon board has, what are they have 12 people on it, 10? 10 people I can count while you talk, so if you think of the Amazon board, the question that we're trying to answer is how many board members is Jeff Bezos Worth, right? So if there's 11 board members, our estimate is Jeff Bezos buy himself is worth about six of them. He's worth more than half the board so you go into the room with that. Guy is it is it possible that some Jammu who just made the board last year is going to stand up and be like excuse me Mr. Bezos. I respectfully disagree with the words coming out of your mouth, the likelihood is near zero. We're measuring a social Dynamic that happens in the boardroom. Hurt though. What, that's not even the best part, you finish, what you're saying? I'm gonna tell you what's the best part about? I'm gonna keep going and you're allowed to interject. So, for all you chuckleheads, who, who equate Amazon with Bezos, you're actually right, we have congratulations. And you know what, you know what this proves is that in Andy jassy only has 8%. So, he's not even the business. I mean, the CEO anymore doesn't matter. It's really sad makeup. Doesn't that Apple? You're wrong about Apple everyone because yes while Tim Cook controls 26% of the influence again, this is according to our own data. This is our board statement. Only we have this at a week created nowhere else. But when you look more into it, Matt like Andrea young and Arthur Levinson combined, hold more power than Tim Cook. That's sure. Yeah. So it's not just Tim Cook's world over there and and what do I love about this? Here's what I love about him at is that this is what tells me is that there is a considerable power in the fact that Jeff Bezos founded Amazon and has a significant Equity stake, still to this date which is 15% roughly, I think. Yeah, that's where we're finding his influence whereas Tim Cook. It has less than 1% of ownership did not find. There's not a founder of Apple, and you can see it right there. So, I'm just saying, like this, I like this stuff. This is crazy. Now, Damien just woke up to the fact that we've been building this for two years, it's actually he's like very excited. It's a way of quantifying this and we finally have a way to prove things. Here's what I like and I'm gonna link this back to what you said about the vote results, how nothing changed, right? Say on pay exactly the same director for votes. Exactly. The same, the gender makeup, actually, it's actually going towards men very slightly again, rather than towards women in terms of election results. All of those things are staying the same. But you know what's not the same? How directors actually perform like how? What results do they achieve? And what we did was be was give them an attribution. We know if, you know that, Jeff Bezos is effectively Amazon. He's 56% of of the board of Amazon effectively in terms of influence. Now, we can say well how is Amazon performed on things that the board has to make choice is about like they acquire someone or they have a big you know, they pick you know, CEO pay or whatever it is. We can go back to the board and say now you own 56% of that result, you know what that means? That's not actually all the same, you shouldn't be voting 90% in favor of directors, when by definition, half of them are below average and now we can show you who's below average. That's amazing, that's the best. Poor Keith Alexander coming at 1%. That guy doesn't get nobody even picks up. Yeah, for everyone to be in business news, ESG news, and all that. Be careful when you when you equate. Amazon, these days with Andy Jesse, what's the CEO up to? It's not, it's still not that important. You know, what is up to? All right, let's move on. And also say, yeah, I'm just gonna say really quickly for my bit today. Um, wait I did. Yeah, I'm not done, I'm not done. Oh, what do you mean, you're not done? What do you doing? What do you have? All right, fine, I'll pass the top. Go, what do you have? What are you gonna do? One more thing to say, but it's really not important. Go ahead. All right, I want to say this. I went down a deep rabbit hole about. You always abortion data. Okay. I wanted to know like because I have this Theory now that Roe v Wade has fallen in this country and we've decided that basically, we decided to remove federally, you know, 50% of the US, populations, right? To complete health care. That's what we've decided to remove. I don't know that high. Okay, I mean, it's like, 49% are women, right? So, um, and go ahead and on the, on the conservative side, you know, they're moving to move, moving to Outlaw basically, all Lady parts and then eventually black people's parts and gay parts and all the parts that they don't like. And on the liberal side, we're arguing about like terminology, like whether someone's a potential lady or uterus holder or have her or whatever. at the center of this side of this theory, that ESG data, after six months of getting beat up comes back where everyone is ready and they say, you know what, This is the data we need, we need more data, we need more transparency. So I went in a deep dive and who the abortion sort of tagged companies were as in they provide abortion services or they offer abortion, they develop abortion related drugs or whatever. Okay. And then I just went into a tailspin, a sad talespin. According to the data in one place, a company called corcept Therapeutics, makes all of its money. From a board of actins, basically a drug that is an abortion or abortion related drug, 100% one zero zero all of its money. And then when I went, I thought that's weird. Do they do plan B but they don't do plan. B Plan B is actually a private company. So what drug do they do? Turns out what they do is they made a drug to moderate cortisol for people with Cushing syndrome, which has nothing to do with abortion. But the side of the drug if you are pregnant, is it terminates? The pregnancy? It's an accidental side. Effect. They say, don't take this drug if you want to be pregnant or plan on becoming pregnant. It will terminate the present pregnancy, but it is designed to fix your Cushing syndrome. That's what it does. Is it being used, is there like a black market use of it for abortion. So we know they, they actually say, in their annual report. We do not, it is not an abortion drug. It is not designed for that. It has like 50 other side effects, too. Okay. There's no way to know whether everyone's buying the drug just for that, but it has to be prescribed and you have to be you basically. So, if you're getting on the black market, I mean, that's that's a, that's a different problem. That's a pretty, that's a pretty illegal act for Doctor or pharmacist to be, prescribing it for that, right? So then I went to a Catholic slash Christian website where they tell you, which companies are involved in all sorts of issues, that contravened Christian values and I looked up the same company corset Therapeutics and know what they said. No, ties to abortion. Nothing to see here. Totally fine. And then I just felt sad. I just everything makes me sad. The right answer is like the data is the data and you can make a choice. However, you want to make a choice. It means everyone gets to be right with what they're yelling at. You want to yell about the terminology you want to yell about, like, you know, Banning abortion and Lady bits. I did find that. It turns out Marjorie Taylor Greene and a bunch of Republicans who are Vera. Very anti-abortion anti Women's Health rights. They actually owned companies that have all stated that they will fund travel for women to get abortions, if necessary, and they own those stocks, and Marjorie Taylor Greene came out and said, oh my financial advisor, handles that I don't know. Okay. You made the money though. You right? You made the money for you. That's you, who made the money. So I I lost my bit in The Ether and I wish I was lost. I don't want to see, I want to talk, I don't want to talk about ESG the data, the confusing data kind of took away. It hurt me, it hurt you. Okay, it hurt me and I need Emma to pick me up with a bit on dumpster Trends. I let's let's get out of Matt's some sad rant world because I didn't even didn't even come. It didn't even happen and I know just sadness, just sadness. All right. I want an answer to that. One day, though is corset Therapeutics. Are they in abortion or should they should their revenue be linked to abortion or not? They were the only one Endo International, the Roe v Wade was announced by the Supreme Court. Samuel Alito was dressed like a witch hunter from the 13th century. When he delivered it and Endo pharmaceuticals who Makes a drug who has a different drug. They make many drugs though, one of which has the side effect of terminating pregnancy, another side effect, it was a side effect. It's a drug to, it has nothing to do with abortion. It it's for something else, entirely and Endo International the company. The stock went through the roof on Monday trading after the announcement was made. So, I don't know whether that was like the woke being like, let's buy up all their drug because it's, that's the side effect to your point, right? Or the anti-woke being like, this is gonna get. Now we can invest in them because they have to stop doing it or maybe has nothing to do with anything. I just wish I was dead. That's all The end, I was. Okay, let's move on. Emma, what do you gotta ask some more questions, but I realize that it's gonna get continued to spiral. So what do you all right, here we go. Emma's trendy dumpster dive. We're back. Number one, we have Matt, I know this is supposed to be uplifting, but number one, shut up. I don't want to help him. Joe Rogan says he refused Trump as a podcast guest. So Joe Rogan had the opportunity to have Trump on his podcast, on multiple occasions and turned him down every time, which is more than SNL can say. So, I'll give him that, and none of this matters because no one can do anything about it. Because Spotify, Founders, Daniel Eck, and Martin Lorenson, maintains, 77% of the companies of boating power. So, Joe Rogan can truly take his 200 million dollar contract, and do whatever he wants, as long as they give him the green light. My question about this is, do you think that this will have the opposite effect as the Ivermectin nonsense? Conservatives in trumpers will be upset this time because he didn't have Trump on and they will try to cancel him. I don't know. I just like, I just like how easily you pronounce Ivermectin. Yeah. How that you Came right out I ever met, I mean, yeah, I don't really care. I, you know, all I care about when I hear this story, as I care about your take on the Spotify, Founders controlling the company like I, yeah, whenever I hear that, I that's why I get most fixated because this is a company unbelievable to me. It's unbelievable to me that all these artists. And I guess I include Joe Rogan with that sort of an artist. are basically giving the the majority of the profits for their efforts and work to these two dudes to Daniel. So and Martin and Martin. Yeah, the thing about their ownership is that in terms of total ownership, I think between the two of them, it's more like 36% but voting power is 77% between the two of them, right? So they're, they're Little Little Empire, right? I will say this, Spotify is one company that BlackRock is not the largest holder of. That is true. Okay, that's your takeaway. That's my takeaway like the way maybe every company we should talk about like just in terms of black rocks power All right. What else? Thor love. And thunder. Film, review. A droll Marvel. Really, that's the name of the that's actually the name of the movie. Yes, that is. What is What is where? It's like an 80s hair metal. What is our culture in our culture? Correct love and thunder. Yeah, I believe we can do Sweet Child of Mine. Pretty sure the child of mine is a big feature song in that movie. So anyway, Thor, love and thunder film review. A droll. Marvel sequel. Aware of its own absurdity. There were just this was trending. Today, the reviews are coming out, they're like pretty good. But my take from this is that in this movie it has a bisexual main character who has played by Tessa Thompson. Oh, so we have some what? Yep and Saudi Arabia you listening, right? And for those who don't know, Saudi Arabia. What about Florida? What about Texas? Marvel all Marvel movies which Thor is one our own by Disney Marvel Studios is owned by Disney. And, of course, recently there was the news of the Floridian don't say gay Bill, passing and Marvel Studios released this statement. They said, We strongly denounced any and all legislation that infringes on the basic human rights of lgbtqia plus Community, Marvel Studios stands for Hope, inclusivity and strength. We proudly stand with the community. Today we pledge to continue our strong commitment as allies to promote values of equality, acceptance and respect. So I use the word pledge, kind of ruined the whole thing. And what is denounced? What is a, what does that sound? Like a sneeze? Like, no, you know, what? What's the power behind announcing? What I mean, they could, they could literally do a Thing. Marvel Studios must be a pretty powerful entity. Excellent question. I think they should I think they should just film a movie and which every Marvel character makes out with one another in all permutations and send it to Marco Rubio. Oh, yeah. Well, that's a movie. I'd see if Marco Rubio. So, Damien to answer your question about what denouncing does, it clearly does nothing because this election cycle alone, 2022 Disney has donated thousands of dollars either directly or through a pact to Marco Rubio. Lindsey Graham, Mitch McConnell Kelly, Loeffler, and David Perdue and you're supposed to make me feel better. I'm sorry. You said better and I had already written these depressing ass bullets. So here's that's where we are. And not only that. But two of the movies direct producers like in the credits, you can look up on IMDb including the president of Marvel Studios donated to Disney's pack that throws money at all these delightful homophobes. So that's What I'm learning here. Is that Florida Floridians, Florida? They say don't say gay and then Disney's basically saying don't say don't say gay and then this story over. Yeah, right. Yeah, but they say it with a quirky 80 soundtrack, that goes, don't think. Like that. So, it's better. And finally number three, finally that Midler and Macy Gray a dress backlash over comments, deemed transphobic. So, we're gonna focus on the BET Midler of it all today. That Midler tweeted women of the world. All caps exclamation point, we are stripped of our rights, over our bodies, Our Lives and even our name, they don't call us women anymore. They call us birthing people or menstruators, or even people with vaginas. Don't let them erase you every human on earth, owes you. That was quite a lot from BET in my opinion. Feels like sometimes you should tweet and sometimes you shouldn't and Bentley. Doesn't know the difference, okay? But that tried to save herself with this series of follow-up tweets by saying that she was just responding to an opinion piece from The New York Times and she linked the piece, sure. So, in the words of Jack turban MD from Twitter for your consideration, I think that op-ed was transphobic. I'm gonna go out and say, yeah, I read most of that open. It was not great. It sounded, pretty transphobic, but where this comes into, the free flow world is the New York time. So the New York Times is a publicly traded company site, actually? Sorry it's not. We're back at Spotify. It is a fake public company once again to see, sorry. The theme of the day is I don't know what to tell you. Well, you know what sucks Emma is that most of the fake public companies that we talk about are either in Tech or media. It's always been that way. And it's kind of, I mean, we're joking about It Matt's finally smiling. But This gets BlackRock is a problem. The second media. Why Tech and media? I don't understand this. Well, the it is a big public company. All basically, all of the voting Shares are held by the aux salzburger family, which is the same family of the dude who bought the paper in 1896. So, ownership of this paper has not changed or been expanded since 1896 in essence. So, did you just blame the New York Times for Bette? Midler being transformed? Maybe it's happening. I don't think he doing. Yeah. Who are you? What's happening. But maybe we should stop listening to 76 year olds who have something to say about like Progressive 7, 6, 6. Can we just say it's all their fall and just be done with it? Are you sure? It's like, but they promised progress and Woodstock and like the hippie movement and they were and then literally, they funded to this like my what happened to last week's version of Matt? That was telling everyone that we're seems like we're losing, but we're actually winning, we are winning back because we're clawing into their hole on power, right? Yeah, that was that died when he when he read about corset Therapeutics today. Okay, thank you, Emma Larkin. All right, depressed, Matt. That's all I got. Let's get out of here. That was Emma, lurking and Damian Ross, I am a sad. Matt, we are free flow media. This is business pants. Come back tomorrow for quiz show. Thursday, know, I always feel better about quiz shows. Yeah, we're on quiz show Thursday already. So I'm always feeling good about quiz shows because I don't have to prep anything and you know that you all work, it's the best. We'll see you tomorrow. Goodbye.