Transcript
Oh, no. Wait, how does Damian do it now? He doesn't do that anymore. I'm the only one who All right. I like I like the hey. Oh, live from bottom of a well, covered by a Business Insider special feature about people in the bottom of Wells. It's a business pants Monday. Bottom Wells. How did you find them? There was, he said, your children down there if it was a time. Actually, when there was like stories about a kid, who fell in a well that was like the big story. joined as always, by It was almost no one, it's just Ari Ari the data Queen is joining me. I was gonna be by myself for a second. I am vegan fudge. Emma and Damien are out with on wheat today. So this is it. This is what you get you get the two of us in today's demure bag of saber metric shaped nuggets called August 1st 2022. It's a weekend catch up with, with laced with free float, fun facts. Say that five times fast. Yeah, please do it. Keep going fast. Well, I've never heard you sound more like a New Yorker than just now and we're going to end with a nerd alert. Are you ready for this? Yeah, hit me. Let's do this thing. First, the headlines over the weekend here are your hot hits out of CNBC. Are you worried about Landing that first job out of college. Here's a look at the most employable degrees. So what do you think the most employer will degrees? Our first of all? Right. That would make so much more sense than what it is, it's not teachers. Know the degrees. In fact, our math Followed by chemistry. All right, here's your free flow. Fun fact. if you're thinking about being a board member for us company, feel free to ignore math and chemistry using their floats patented data. Are there. What are there? Not a lot of chemists on boards that we actually ran every board member in the US threw our board. Saber metric Textron 9004 patented machine and I used msci data. Shout out to msci. We scanned every bio for us directors in the last 10 years, to find out that only one percent of them have three and one percent, had a chemistry degree. Don't worry though, we're in good hands since you'll be shocked but 32% had a degree in making money econ Finance mba's mba's oh they give those out like hot pot pies. Yeah they do. I actually think you just have to call someone and you get one now that's they all have that. So there you go. You you are an engineer by trade and that was a waste if you ever wanted. To be a board member. You wasted your life. How do you feel? Well not, because I'm a woman, you know, they require that of me. I should probably work Steve if I want to end up on a board. Wait yeah. Are you saying you already were a waste because you're behind the eight ball or what? You know, they do say that if you don't make it to the c-suite in 10 years, you're done. You're gonna go for my job because I only see sweeter, you know at this point if that's what this is. What you got? That corner off office. I do I am in the corner of your corner though. Of my house. Speaking of skills, here's another one. Chevron delivers robust results and boost the pace of its share BuyBacks. How we feel about that feel good. Is this because gas is so expensive. Yeah, every dollar that you're spending at the pump is apparently going back to investors of Chevron. And some of those investors you might know are free, float. Fun fact, our board saber metrics pegged Ron sugar who's Boardman extraordinaire on the board of Chevron. As the most influential person on the Chevron on board Ron sugar. First of all, Credit where credit's due best name of anything? Really good name. But this is the same raw sugar who actually participated in a KPMG survey last year of lead directors. Very important lead directors for insights on what makes a board resilient and in that survey It found they have quotes from people. So I don't know if this is Ron's quote, but Ron signed on to do this project, I'm going to say it's might be Ron adjacent quote. I think board diversity and keeping it. Fresh is Key Management, diversity as well, avoid getting into a rut. Keep challenging yourself. You need different perspectives. Not just from different Industries and not just from your competitors. Keep it fresh. I feel like that's something Chevron. Doesn't really do well. Okay, so Roni Here's the little bit of different perspective about the Chevron on board. Our data shows that you are connected to eight of the Chevron board members within three phone calls what that means. Is, you know, a guy. Who knows? One knows a guy who knows your bored. so, There's buddies. It would be like, The Chevron boards friends. Yeah. And now they're all in one big room. It's like you and I go out to like, we meet at an event, a gulf event, because that's what you do. I'm wearing a little golfing hat with the pom pom at the top. And, and I say to you, oh, hey, how was the the board of such and such and you say, oh my buddy, Greg actually is on the board with you. So I hear all about right. Like you, you were all were closed. Right back to eight people. He can do that different people. I don't know how many how many people are on the board. There are 11 people on the board, so almost the entire board. He can do this with and to me a little bit worse. It's not just him. In fact, 73% of the board King get back to at least six other board members, same exact way. So what you're saying is somebody through a rager, once all these people came, they're like, you know what, you get to see you get a seat and you're gonna see. Yeah, that's what I have just like that. You get one one for you. It's like a Oprah underneath your seat. You get a free car. And one of the board members is actually a guy named John Frank. He's the one who has no connections, okay, but it turns out all you have to do is Google his name and look at him. He actually worked at Munger Tullis and Olsen And if that name is familiar that's because it's Charlie, Darth Munger and Charlie's law. It was his Law Firm Charlie who on berkshire's board? Sure. Now, owns 8% of Chevron, so it's not exactly like these are people who don't know. Each other in some capacity, so Ronnie sugar free. Float fun fact, keeping it fresh. It's Ron. Sugar keeps it fresh sounds, like he's like a board douche. Can I say that's wrong? Oh, I think you can. Oh, I love it. I feel like in the 90s that was a commercial, right. Like, keep it fresh or something, it was really terrible. What the fresh Stripes? Yeah, I don't slip brush up, remember the brush UPS, that's what. Yeah, that's what it is. But I want you to actually that's gonna be our new theme song, speaking of shady and fresh. Here's the next story. Starbucks Union asks coffee giant to extend pay hikes benefit. To unionize stores. So in case you don't know what's going on here, okay? Howard Holocaust blanket Schultz is, he's refused to pass. His Holocaust blanket to unionize stores. He gave pay hikes and new benefits to non-unionized stores and said I'm sorry. I can't give them to you. I can't give them to you because that's stupid Union. Like we have to collectively. Bargain now. Sorry you screwed yourself but the union is actually saying yeah, you can if we just agree we don't have to go collectively bargain for pay Heights, right? Like right. Just ask us and we say that's cool. And then the job is done. But here is your free, float, fun fact. Howard Schultz. Is actually technically volunteering his time as interim. CEO, he receives a one dollar compensation, no bonuses, no equity, no nothing. And according to his 8K filing, he took the job. That was the agreement that he'd get nothing, which means the fun fact. Is he has zero incentive to deal with unions. And if you made nothing out of this, like why would you buy if you had ideological like opposition to a union? Why on Earth would you spend time negotiating? There's nothing in it for you. You just hate them. You could just hate them because you get nothing from this. I mean, he's just screwing them for fun, that's what it is. It doesn't deal with it, he was screw them. You can because what's gonna happen investors are going to be like fire that guy. He's like I made a dollar like what do I care? Like I I'm a billionaire. I don't care about any of this. You're I'm doing you a favor. That's what he gets to say. I'm doing you a favor but he's just making it like everyone. He's just making Starbucks look bad at this point. This is the dumbest thing. What it is really is a terrible idea. And speaking of terrible ideas, this story is going to make you upset, but I'm gonna do it anyway, which is and you will also simultaneously won't care, Cleveland Browns. Quarterback DeShaun Watson suspended for six games sources say Now. Do you know about the story of the Sean wants? It is the one with the car crash. No DeShaun. Watson is a quarterback was a quarterback. Now a Browns quarterback was it Houston. He's the one who is alleged to have sexually assaulted over two, dozen women asking for massages and like happy endings and all this kind of gross stuff. He hasn't played for like a year and a half because of it, he sat out and now and now he got a big contract with the Cleveland Browns and his punishment. From the league is set up to be six games. Wow. They can't reference. Tom. Brady got four games for violating the ideal gas law. Basically, they found that like deflated balls and him was physics. And I mean, assaulting women is only worth two more games than that, but here because this doesn't make any sense in the business world. Except that I was in CNBC. Here is the free float, fun fact. Knowing who makes decisions is important and the decision maker here was a retired judge named Sue Robinson. Here is one of the decisions that she made when she was an acting judge in Delaware. There was a case in which a group of prisoners in an overcrowded State Prison, alleged cruel and unusual punishment because they were sleeping on floor mattresses. And they were regularly, being splashed with urine and feces from toilets and cells that were overflowing and prison did nothing about it. Oh, Sue Robinson ruled. the conditions were not in violation of their constitutional rights since they were receiving adequate food shelter and clothing Shelter. This is not sound like adequate shelter, that's apparently, they did not mean shelter from fecal matter, that's not in the Constitution. So this lady is saying that if this guy sits out for six games, that's it, you're all good. Yeah, he's good. He's paid, you still got like civil like lawsuits on his hands but for his professional career, his career, good to go. Six months, six games, that's it. Good to go six games. Jesus, speaking of fecal matter, here's the last weekend. Catch up story more than 80 cfo's pushed back on sustainability reporting as the IFRS or I first sustainability disclosure comment period ended on Friday. Now if you don't want to talk about IFRS is a, it's like Gap here, it's an accounting standard, they use it more in Europe than any than and some in Asia. And it basically came out with a disclosure around sustainability proposal Yeah, they left. It open for comment. Okay. the cfo's are pushing back, their primary complaint or overall complaint is I'm not joking. Is that it's hard? Oh it's complex that's that was their complaint. It's too complex specifically. They've asked for can we use an existing standard? Can you tell us what Enterprise Value is because they use Enterprise Value, I guess they didn't read to the appendix because they actually wrote in the appendix. The definition of Enterprise Value didn't get to that part though. Can you tell us what to tell our sustainability reporting person to actually write like tell us what to write, like words? Because I don't know what's right? Can you make the disclosure link to science? That one was an interesting one. Can we do this in some way that we're already doing it? Or do we have to do something new? And can you tell us which of these things matter for our businesses? Now. I'm going to play you. In a free float first, a clip from our April 6th show. Where we actually covered this. So you ready to hear me covering me the most meta way possible. Here we go. There are 4500 words in the IFRS report in 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. Okay, that's 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, they do. I, if you squint, you can see it. It says, quote and 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. There it is. So they can't go there complaining about a document, that tells them no definitions of anything. That they have to disclose they're complaining. That it's too complicated to disclose. Nothing that's defined. They were basically told you make it up. You do it. You tell me what matters to you. Write it down? Yes. Okay. And here's the free flow, fun fact, because there's got to be one. 13 of the 80 CFOs that signed this pushback. Work at companies that sell sustainability related, Financial products. Oh, they actually sell products that Define sustainability in the products, and they cannot figure out how to define it for what they have to disclose the big winner. Here is the CFO of S&P Global oh makes ESG ratings that they call material signed document complaining, about how complex it is to report on what is material for ESG. This is true. No this is my blowing to me because that person should see. This is an opportunity. To get to Define it for everybody else. Maybe they do such a good job that they're like, hey, this you are now, the standard everyone's gonna have to follow you, I mean, I think. But I do think though that they're laying out the template here for whenever anybody suggests, any sort of regulation of any kind just say. Wow, that's hard. I that's too hard. Can't do it. And that's it for my weekend update. Now. Are you ready for? I'm going to do something very dramatic here, ready? Yeah. Oh boy. Let's end on a quick. Nerd alert. I just wanted to play that music. I said the button I uploaded it today. It was funny to me here and bring it up. I want you to feel really uncomfortable, all right. if you're ever wondering, In this kind of horror actually when will the establishment of white? Male dominated board members, just get out of the way and allow women and people of color to have their turn. You have a year, will it happen now? Will it happen soon? Will it happen by 2050? The answer actually is. Later than you think according to the study by Peter Bacchus Maria Kublai mattesi guides, santhiago Sanchez, Paige and Enrique Lopez Manassas. The title of the study is gender competition and performance evidence from chess players. Oh, stay with me for a second, okay, The paper found a bunch of stuff about gender and chess matches, including that women are more error prone and play worse against men than they are against women and men against men. They're more equal. So they're finding a gender mismatch in chess games. But here's the finding that stuck out to me is a quote from the paper. These results suggest that men persist longer in games that they ultimately resign when playing against women, even when controlling for performance men persist longer in games and they that they ultimately lose They refused to give it up. They will not quit against women. They quit against Bros and they quit Faster by on average something like three moves faster. They will just sit around longer and longer and longer and here's your nutshack quote from the paper. One possibility is that men know that women are more error prone when playing male opponents as a result. The rational response of men would be to play longer against the female and holding out for the woman to make a larger error than a male opponent would worth this. The case, however, we should expect that women, knowing that they make larger errors against men, resign more quickly against male opponents, for which we find weak evidence. An alternative explanation might be that men's increased willingness to compete. Stems from a psychological cost to Men of losing to a woman. In the case of Chess anecdotal, evidence suggests that such cost may be very real. They're you have it do anything to avoid looking like they lost to a girl right with the pros. But I cannot look like I lost to a girl. I can't have it. You know, they should just study where two people are just playing via computer and they don't know the gender of the other person. See what happens. Yeah, they did this from tournament place so it's face to face so they knew the opponent but here's our free float, fun fact and the show Our data shows. There is a there are a whopping 88 men on large US company boards. They're not Founders, they're not family, they're not insiders of the company. These are external hires for on the board who have been on those boards for 20 or more years, their average age is 71 with the oldest clocking in at 90 8. And the youngest at 53 who's been on the board for 23 years? He started when he was 30. These are won't give it up. Are the men who will not give up if you want their names, reach out to us. Already have anything to add. Oh my gosh. These are the ones that we should Target and be like, we're selling resign, resign. If you ever go that route, When I I scan these men, it's not exactly like it's a list of your you know, like most these are the people you bring to a cocktail party and are like that's that's my dude there is there's my dude right there. No, this is mostly a list of Random in Sydney, life for board members. For some reason, we can't get rid of them. My guess, my sneaking suspicion is they still somehow get 98%. Approval and voting from investors. Come on investors. Stop voting for them. Never quit. I was already the data Queen just filling in with some lovely commentary and that is our show for today. If you like this, the rest of everyone should be back tomorrow. Or Wednesday or whenever they come back. I'm at the end of the week. So this might be a weird truncated week but we'll find out. Otherwise we'll see you tomorrow. Goodbye.