Transcript
Live. From board sabermetrics draft headquarters. Yeah, it's week. Two of the 2023 free flow business, pants, board, sabermetrics, corporate team draft. Hey oh. Who has a problem? Yeah. Acronym. Does that turn into an accurate? Yeah, it's Join motherfuker are the data Queen Jesse the money Whisperer and Lord of BS, Matt mascardi. Yeah. You know what? The backdrop on this is we are drafting the greatest boards in the history of boards. Yeah, that's all. That's all you need to know. The we are drafting CEO a chair, a lead independent director and then chairs of each of the major committee chairs. Nominating and audit, that is what we are drafting last week. We drafted, CEO and chair. And I, I believe that Jesse knows who's off the board already. I know who I got, I got the best. You want a quick recap? Yeah, give us a quick recap. Jesse you tell us your picks first because I can't pronounce the, your CEO's name. Oh, okay. My CEO rashma Keller. Romani and my Hair. Was Latin fit. Are you pick? Jennifer Ramsey, come and see. Oh yeah, he also picked your chair and Gates and yep, I picked jayshree law from Marissa, net Works. My CEO and the surprise pick of the draft, maybe white man. John Ketchum from next Thursday and he's my chair. Matt not winning big, Matt. Probably the most famous CEO in the land who's not a jerk and that's Tim Cook. Apple CEO and his chair Edina Friedman. NASDAQ NASDAQ yes that's the lead of the door. Those are good, those are solid picks. I'm sorry when you say all of our picks in a row, One of us is definitely except my picks all. According to our data board, super metrics. All my picks are stars, the excel in all of our performance categories, maybe that means they're going to clash Damien. I think my board is gonna be your boards but bored butts. What I like about that actually is that it's not the obvious names that are actually exactly Farmers when you use board, saber metrics but let's get into it. The first thing we're doing is what lead independent director Jesse scaling on the board. Come on Jessie Jessie on the board except Matt and I worked out a little trade. Music, what happened? Jesse, tell me. Okay, so Matt is gonna take my first, my first draft Role here for independently director, he's gonna go first. I'm gonna go forth in his spot and then I get to pick two. Okay, next round next round. So at the end of the draft, I basically, I'm just gonna pick last, and last again, we got Matt, who's your, who's your lead in the president? So trade by? This is why I traded up, you know, because because I don't think this person's Gonna Last. Oh boy, I'm scared now. I picked, you know, already in from Adobe. The chair CEO lead independent director, she's got all the roles all. Yeah, and I'm pretty sure I just stole Reese Pam. That is why I moved up in the draft. Matt, I will tell you that shaitan was my number one, it was in my number one position for board chair, and I ended up going with John Ketchum because I didn't want two people in it. So she was actually my number one. Chair pick so good pick. I plotted it. So, I know I'm doubling up on the it, I've got a doobie and I've got Apple, but here is the famous filters. Yeah, she has a Hall of Famer. Here's the hero are the here's the filters that I used. I used. I was looking for a chair or lead independent director. I wanted a whole Famer. I want to influence higher than 25% but less than 50%, so strong, strong performer, but not totalitarian boards. I wanted non-white and I wanted them young less than 60 years old. I like and the list was three people. Oh three and the S&P 500 people met that criteria. Matt, that's I'm taking shining. Where is shantana? Where is he? A lead independent director, which company Adobe. He's the lead independent at Adobe. Well, there's chair. There's Are you breaking the rules? Matt? I think he's chair somewhere else. Pfizer. Yeah. Five and he only has six percent influence on Pfizer. Yeah, I don't care about that. He's a strong party somewhere else. I'm just saying I'm just well, don't how do you know he's gonna be a strong party on your board if he's a strong party on one board in a week party on the other how interesting he's winning. He's what he's doing. So his TSR he's with winners. I just ride winner, TSR is sub average out of six. Okay. Overall it's 7:07. No let's try to think of something. I'm cutting over to the BS Superstars beer hall where they're watching the draft live. Let's see what they think about my pet. All right this is cheap trade cheap trade? You guys I like that. Don't go to the bathroom that's when we yeah. Are 30 seconds? Oh Mario. You're up. All right. Fine. Hold on. I'm gonna I gotta play you in. You need the, the pick is in. All right, for my lead, independent director, I have picked the current lead independent director and actually chair of the nominating committee at Electronics Arts AKA EA police ubinas. Wow, I know. Thank you. Thank you. So, why his well besides his overall performance metrics, which is above average here, his bio actually, let me tell you this, his bio is littered with things that are pretty normal for the space, right? Like he is a male, he's spent 18 years at Mackenzie. He has a ba and MBA from Harvard. He was an appointee in the Obama Administration, etc, etc. Usually these things don't. Wow, me I was like, do I really want him on board? Do I think he actually crushes at life as much as it seems like a crushes that life? This dude was raised in the Bronx along. This four siblings by the widowed mother for you, Puerto Rico, you and he's been crushing it since middle school because it's because the only way he got to Harvard was by being picked as a middle schooler as a gifted child like this and put into a very competitive and highly saw After High School which then you know fed into the rest of his life so I love him. Wow he performs well too. You went deep. I like it. When when you do your analytics down to their middle school performance I do think that is a competitive Advantage. I mean I stopped well short of Middle School. Get the full story. Ready. Can we move on? I'm bored of. The only thing I have to say about that. I also looked at him once I figured out what Electronic Arts was I was like, no, you don't like video games. Know, I don't, I will say that his his earnings batting, average is pretty low hitting, 393 that could be a problem for you already down the line could be a problem, is his weakest one. And that's the only just said, only Metro that's below that I will say also lead, independent director, the CEO and chair. Andrew Wilson has 42% of the influence of the board. So He's a bit. He's a welcome. A paperweight? Are you are you calling her pick a paperweight? I'm implying that let's move on. The next pick is in. Oh, we have Damian Wallace on the board. Pick is in. Here we go. I'm once again sticking to the white race for this next pick. Oh boy. Something from this. Sucker Carlson's. I'm leaning heavily on the Caucasian race for my, that's not how we've been into the picture. I've always wanted to say that in a corporate draft, I'm going, let's start with with where I'm going. I'm going to the healthcare industry for my pick and I'm going right to a Titan. I'm going to Johnson & Johnson, going gross. I'm going after, and we'll copy. Help me out here. Anyone knows to watch a YouTube video, but you know what? Mispronouncing, a white person's name. Just feels right. I feel good about I'm like proud of myself. Irish the Irish have some weird first names. Oh, so here we go. We're already anti-irish here. Go on. So and Mulkey Johnson, lead independent director. She according to our data is in All Star hitting overall 596. She's one of my criteria was to have a batting average above 500 and all of our performance. And she She does that she sits on three active boards. I I wanted another woman because I picked a guy from my chair. So yeah I'm happy with this one. And again, what I really wanted was someone from the health industry because I really thinking about the pandemic and I don't know what's coming up next. So there you go. There's my pick. I'll say a couple things about. Yeah, go ahead. Is that our data suggests right? First of all, Anne has 20% of the board influence. Yeah. She's more influence than the CEO has on the Johnson & Johnson board amazing. That is, that is actually quite remarkable quite that is. Yeah, that's not doesn't happen that often. She's also highly interconnected. Yeah, he knows them all. She had a quarter of them she's friends with well within two degrees. Do we do? We love that I do. I I again I told you last week, I really, I really aimed to pick, not just names a really well about sport. I wanted all kinds of because I don't know what kind of things that this game is going to throw at our company, so I would just want to be ready. Well, listen, whatever throws at us. I got somebody in video game so we'll be entertained when it's entertainment, drugs, and condoms. Know, I will say she's the only All Star on this board. She's she is the Lone Star, isn't? She just, that's what I'm seeing here. Okay, so, I pick up for one like this, both of both of these. Last two picks were not terrible. That's the closest, you know, I'm nervous. I will say Damien. I looked at her too, but I already had someone in healthcare's pick is up. Christine poon. Oh, that's on Prudential Financial tough. Wow, financial side. Okay, I like her because She performs. Pretty well. She's not one of my top performers. That doesn't sound under hard. Yeah, pretty well, her earnings are trash. Yeah. Average in earnings and TSR I'm saying, yeah. But that's okay. That's okay for now, she's been a director on the board since 2006 lead. Independent directors. Since 2020. Killing carbon killing it in carbon. Yeah, true. And that was important for me. Well, back up the environment can hate it. I hate the environment. Can you be independent on a board? You've been on for nearly 20 years. Good question and America I guess she could and 2020 they did she. Yeah. She's highly connected for 20 years you know everybody. I need a networker on my board that's gonna pull people together. You see what you're doing. You're like you're you're moving on the flying know I like her. What's Rolling to your neck. Wait, she gets the next pick match. Is that what happens? Yes, she gets my pick and brown so she's getting a double pick which means just excited. Was Christine poon of Prudential moving back to Jesse after a blockbuster trade on the board trip. All right you ready for my first chair pick? Yeah. Okay. Susan barsemian. Whoa, of Jen digital. Oh, Jen digital, I saw her. Yeah, another female of course on my board she's an All-Star. She's batting 638 overall nice and she's above average on all of her performance metrics Damien. Yeah, I love when people's above average know, I like it, I'm with you. What is Jen digital? What is what is it? Do we know it's a dope know, it's McAfee. It's um, oh I love ya Norton's, I love that security. So there she is. You know, Susan, interesting about this board. Actually, it's one of I think it's only like four or six percent of all us companies, we tagged a socialist boards. This is one of the right sport. Nice. Socialist board is where each of the Committees. Has more influence than any of the Insiders or Executives on the board. So it all of these committees are actually power committees. Susan's got, 15% of the overall influence, the influence spread between her and the highest Vincent Paulette, 15% to 17%, it is almost an equally, it is like pure, even spread across everybody here. It's solid effect. She was she a great two on her and I thought about her but I created somebody just good. I Christine I did it. All right. Yes. Hey my pick, my first chair, pick is a Hall of Famer, so and that is Melissa. Rife Reef. Okay. Oh boy, oh boy. But just the company and Etsy, don't you already have an Etsy type company tapestries, the same company. Know, it's a reef. What's the difference? Melissa reef. At Sea. She's also a board of director at Cricket. Have you those phones are cell company, cell phone. No, that's Cricket. Oh, Cricket know, this Cricket is the little printer that cuts things out and you make crafts with it and then you sell it on your Etsy store. We are you, I see you. T, it's like matter. Is this the equivalent of playing at a junior college? I'm out. I'm out, I'm out on this. I'm out on that, too. Your kids will want one, Southwest Alabama, State, listen. All I'm saying that she's got great experience for this. She's a little basic. Oh no, I love you basic. I mean, so CEO of The Container Store and yeah, working first Cricket. I like don't get me wrong, I like organization, but Jesse a little bit. What is she? What that many women have CEO experience. Great, cool like that. But I just don't know what she's gonna bring to your board. Necessarily with experience in the industry. She's good. Wow, yeah, well, she knows consumers, right? Like, yeah, driving. She knows female consumers at the very least, and they are the ones that have the most spending Powers. We covered many times. Just see ya. Consumer decision-making, is Tip. Yeah, true. Yep, she's a Hall of Famer and and that's that's worth something. She's been supporting. All right? I mean there aren't very many of them, so good. Damian roles on the clock. Pick us in. Here we go. I gotta say I'm a little bit relieved that nobody picked this woman because I really needed someone from the financial sector. I was, I passed over mellody Hobson, I wanted a black woman on my company, of course. So I went all White's. I thought that now I have two white and one Asian. I really thought she'd be targeted. She is absolutely a Hall of Famer, Sean Taylor Cooper from the financials industry out of Internet. Intercontinental Exchange, a Hall of Famer overall according to Port saber metrics is hitting an overall eight thirty eight. How about hers? How about that? Wow 308 Chantelle Cooper I'm very excited about that's pretty high. Yeah except she only been on one board. Did you say that? No. She's on three active ports. Except isn't this? Just the Jeffrey Sprecher show? Tell me ice is oh, just under 50% of the influences, one guy. It's one guy. He doesn't actually have. I don't think he is a dual clock. He's not dual class. but, Like we're only has 4% interest. 4% influence is low influence. Your place is low influence play for you. I don't know what you do. I needed financials. I'm very excited because I took a Dina you couldn't get anybody good one. A Hall of Famer that's true. You know financials for I want to again I want I just like we're going through like a mini banking crisis. What do I come on? What are you doing? What are you doing? True that big was pure mediocrity but it's over now so we're moving back. Yeah what's up next? Jesse gets done back to Jesse. Yeah he's going back and then again and then I traded go ahead. All right. You know my second pick, you ready? Yeah. Stuart Taylor of nominated he was corporation like the wait. The company that makes ballpoint pens. No jars jars every day and check out that Harvard intensity. Score do Taylor. Wow. What is he what is he on? Is he the chair of? What did you see the chair of She's chair of the nominating committee chair of the nominated committee. He is the Yale, grad. A Harvard MBA, founded a p, right? Did he have a widowed mother and grew up in the bride? I really did. This America's Got Talent. Did not do that research. The only time we're Harvard or Yale sound impressive. Team percent influence, I don't know guys, he's looking good. No mother grew up in the process and really good. He knows consumers, Ari who doesn't like a mason jar who doesn't like we know we know from the pre-production that are a really like is the most influential person on the ball Corporation. Right? 18% influences, not gonna be like and he has a track record of being an influencer. That's true over his tenure. So we have a tag that it is. How are you? An influencer or not, and over all the companies. All the years you've been a director and it's the percentage of time that you've had more than 10% influence on a board and he's tagged as an influencer. I mean, January goes people listen to that guy. That was important because he's gonna be the one man on my board. So I just wanted to make sure he could hold his handle it on my board of straw. Are you just criteria? But that pick is over. Now, it's another pick and it's Jesse again. Yes, somebody took away, my pick. This is just traded my pick and I didn't know my last Jesse's last. This is the last pick of the draft Jesse. Okay, okay, last pick she's chair of the comp committee. Andrea young. Oh, Why are you? powerful powerful in rotation, but she's a woman, she's really powerful besides controversy which yeah, she's batting above average in every other Every other metric that we have, which is great. I mean, Apple, you can't get away with it is. No commercial, yeah, can't get away with having no controversy there. Come on what other boards is. She sit on. You have the information in front of you. She does, she does, she does, she has been on a lot of boards. She's actually almost connected to almost half of the apple board throughout. So she's a non-profit leader a prominent women's issues supporter. Born in Canada, which is like gives her cool points right off the bat. I mean, you can Franco Canada files, she also serves in the board of, you know, Unilever and Wayfair. Oh, I used to work at Wayfair. There we go. There you go. There's the connection. We were all looking for. There we go. That actually, that pick feels. Great. No, I don't like it. It feels like this is where you want to get into the deep cuts and you went stuck. This is like what do you mean you went? What do you mean Tim Cook? Yeah. Well, what's wrong with what he's saying about Andrew Young? That's wrong. Tell us tell us why was my she was deep on my cut list. So this was a deep cut for me. I mean, like happened to be at Apple. I also know that she was, isn't she part of the decision about Tim Cook's pay and nobody likes his pay package. He got lots of votes against his pay package because of the size of it. I mean we're we're talking about like this is this is a risky pick I guess I would say yes it's okay. Special with that controversy batting average of 18. I love it. Come on. I have picked. I have also picked a man. Jesse a man. Jesse's name is Freeman. Roboski. Oh, and he is a chair of the nominating committee. He was previously the audit chair. At. McCormick McCormick. Thank you Jesse. And I were just talking about them. Ari, loves her consumer Brands here. You know, what does he, what's his influence? Ari? Oh, she's going for the Deep know. I'm just trying to see if he might be able to 12%. That's way them. Not to add added crap into their seasoning. Oh, I looked at him and I was like, I know, maybe they could be but there's a lot of natural flavoring in there. Wow, here's my problem seasoning. Um, with Freeman. Yeah. He's that average. He was the one I was going to pick and now I I have to find a backup hustle. Hustle. Nice. So I'm out of pick. I had nothing bad to say University of Maryland. President Emeritus. He was the president there. He's Constellation Energy board. He he's a Hampton college grad and got his MBA at University of Illinois Urbana. He's he's basically like the smartest person. In fact, he spent tremendous amount of time with an emphasis on minority participation in math and and Science Education. Like that's been his like life. Yeah. He's got a ton of awards. Nothing bad to say about this dude. Not a word. He was voted 100 most influential people in the world. Yes, he's probably paid for that. Think this is bad. This is bad for me. All right. But it doesn't matter. It's Damian's pick Damien's. Pick is in I think I'm going to go, I'm really trying to create a rainbow on my board. A thing. Well yeah, I'd like to I want I want to represent all types of diversity here. I'm going to go with Hispanic director out of General Mills so I want I want a consumer staples company. I'm going to go with Maria sastre. Maria, does anybody know anything about Maria sauce? Maria is a according to our data, another Hall of Famer. She is hitting 720 overall. She's over 700 and 4 out of five of our categories. Again, she's a General Mills, she also sits on the board at O'Reilly Automotive, she's at the conference board. Oh, I believe, I believe that's employed Paul Hodgson. So I think maybe a conflict of interest here. I we. Okay. So we're gonna write an email to Maria and let her know that she was drafted. As my second chair, my second means Sports. Should we have Paul send it committee? Chair on his team? Yeah, let's call send it. They probably Maria sastre, Paul ESG, General Mills us, Hi Famer, according to our data. That's my pick though. O'Reilly thing. That just kills. my first, some reason, All right, I I don't care about Maria. I care about my pick. Your way. So this is your second chair Pikmin. This is, this is my, I only have a lead into Power director. So, this is your first chair pick. Yes. So I'm I'm in trouble here. I'm gonna go with I'm gonna go with. Okay, I'm gonna go with the person on the 49th board. Oh, share of that board. I need, I know, I have a lot of tech, but I need pure data security. I like it. Um, and so I am going to go with Ming Tsai. Yeah. But it doesn't Ming only have like 3% influence. Look at Jesse throw, yes. A de kembe. Mutombo moment there, except that this is the audit chair, right? Like, so this isn't supposed to be that the most influential musician a fortunate. Here's what, at one point. Your criteria was that they had to have over what it was. It 10%. Well that was before. It took are took his picture, he scrambling. So this is my my filter for this is non white chair of something, chair of anything. Just give me a chair of something all performance over 500. You need to bat 500 across all of our performance metrics here and you have to be on at least two boards. There were only 12 people who fit that criteria Ming among them and things actually pretty impressive. Cancer drug research, CEO of a company that had cancer drug research, Global biometric identification. He was the president of a company that did that. Means all over the place. So I'm going with Ming Tsai. I think it's a solid pick and no one can tell me otherwise You might just be a pushover on your board, but at this point, the draft in the city, I guess, you gotta have some pushovers. All right. Next up next pick is in and it's not just because, Jesse's all done. Jesse's done. Is it very final pick. Oh my God. I can't believe it. I can't believe. We got far. Yeah, my last pick. Comes from Verizon communications. About. Right, because oh, Communications, man's very important in this day and age. Matt was crying about not having Internet for 30 seconds. You know, like I said you gotta call my lady. Her name is, oh boy. Shelly Shelly. Our Shambo archambeau. Yeah, yeah, nice. Not one of the I never took French anyway, she is on the board of Verizon. She is also on a board member of a non-profit called Catalyst. And I don't know, I don't know if you guys use Catalyst a lot but They have a great data with citations and it's free and I love them and I used them the past. But anyway, she is the chair of the nominating committee. She is a member of the audit committee, and she also sits on two other Tech and internet services boards heavy on Tech. Well, Roper Technologies, I've never heard of them. It's the research. The people come here for anything to say about Shelly. Anyone know no one cares about you, she's only 60. Okay, she's okay. That's the pick. Okay, now, it's Damien's turn. Oh God, pick for Damien Raul's rounding out my rainbow. I'm very proud to the only person. I think so far to pick someone of Middle Eastern descent. I think, I think the only one, and this is a good pick for us here in the ESG world. Out of nmi Holdings. She's also on The Advisory Board of the Stanford Rock Center for corporate governance. She is a dno liability risking mitigation expert. Her name is Priya Huskies. Wait and m. I Holdings. What is that? Yeah that's right. I looked at her, she looked good, but her carbon ratings week. I wanted a nerdy ESG corporate governance person and this is my you got her. I got her. Yeah, Verizon report Stanford Roxanne for corporate look. You know she might be a nerdy pick but I'm like proud of my pick. I'm proud. What industries is She's an am I holding is real estate but she also again, she sits on the boards of lots of, lots of fun things. Real estate went to. Yeah, go ahead borsa. Yeah, went to Harvard got her JD University of Chicago, so she's an impressively educated person there. Yeah. Everyone's impressed with your person but no one cares because it's I get back to backpacks. And I am going to put them both in at the same exact time because it's a fishing. All right, scrambled I got it done. I have two picks first. I'm going to go with my grade 2, nominating chair. This is what? Ari snaked away from me. I'm gonna go with my second. Pick Risa lavizzo Moray now this woman. He's not Intel. She's in a lot of things. She's one of the most Intel. Yeah, she's one of the most impressive people I've ever read a bio of. Tell us tell us she's a doctor. She's like, oh well, that's it one more. Do I need? That's he studied. Wow, I don't love her TSR or carbon win rates. Controversies are problem, but she's really good at earnings it home this way. She was my girl, overall rating is a 373. Oh, that's what happened? First choice was Freeman. Yeah. Oh, so let's just you want to go over her influences on each. The board, she sits on. Go ahead, okay. Uh at Merck seven percent at Intel 15 pretty good Intel. Yeah he won yeah but nobody cares about gee he's not a real company okay but Merck seven that's weak. You're weak and second. I'm impressed though with her coverage though of those. All those boards. I mean, it's just covering a lot of interesting Industries. There's a lot of information connected. The second person I'm picking is Kevin Loftin. Loftin. Kevin Loftin is that related to Jesse's, pick know. I, I was actually hoping it was, the athlete loft. Is that a real person? Kevin making up yet? Oh, say no more say, no more. Loftin is the retired CEO of common Spirit Health. He's actually almost Pure Health, I actually lacked Health exposure on my board. So, He ran a system of hospitals. He he was prior to that. He was the CEO of two University Hospitals. So he's actually like academic Health, he's an actual human beings, including Howard University, Hospital, and Alabama hospital in Birmingham, Birmingham, he got his degree in medicine from Baylor, lots of doctors on your board. Look, I like smart people and Matt, Matt, 10 years at Rite. Aid is gonna help you too. I said 10 years, Rite Aid and he's a drake trip Medtronic. So um, yeah who hasn't been a director Medtronic? I guess. But I picked Loftin. He's batting a respectable 506 and his carbon is 913. It was just really strong. Okay, I like that. Those are the picks, all right? Can We go over their boards quickly. Okay, just let me start, let me start. Okay, okay. Lead, independent director, Christine poon chair. Susan barsam, barsamian On Andrea young and Stuart Taylor who were your first round picks. Oh, rashma kawal, Romani and Lawton, fit. All right, that's a solid team of people play women. Remember one person out of rude. I remember Andrew. Ari, who's your team? All right, at the very top. I got Jennifer Ramsey, then and Gates as my chair. Lisa binyas is my lead independent director and for my chairs have committees. I got Melissa Reef. Freeman her about ski which I stole from Matt and Shelly. Yet our Shambo I like perfect team Damien. A CEO Jai, SRI Lal chair, John Ketchum, leading to print director and Macaulay and my three board chair. My three committee, chairs chantala Cooper, Maria sastre, and Priya Hoskins my governance. Oh, you know, a week. Sorry, this feels weak. Doesn't it? Well what's weak about it? Especially when I do, my CEO is minor Hall of Famers or All Stars, you guys, I don't know what I gotta say that Ari and Matt completely ignored our own data which makes me not understand what we're even doing here in the first place. I actually took into account multiple factors. Not just single data point because I am a drone my first pick. No, we have actually met. Just so, you know, we have, we have an overall performance rating and we have four separate parts of that performance rating. So it's not a single day. We have no less than life's saber. Metro 20 other like performance metrics but that was standing. I my first pick CEO was Tim Cook. My shares, Adena Friedman from Asda, my lead independent director, who I traded up for to get is shantanu, Narayan from Adobe. I got Ming Tsai for my audit committee. I got Kevin Lofton for my comp committee and Loftin actually can double as a lead independent director. I got some Flex out of that and really cook, love it. So Moray is my nominating committee head. That's all we have. Do you have anything else to say before we get out of here this probably the best ever 2023 free float business pants Sports ever metrics corporate team drafts Can't wait to put them into action. Yeah. Now we're gonna see what happens when we training starts Friday morning, right? He's got spring training. They have to report. Yeah, they all have to report, although we got to work out their contracts. That's all we got. That was the one and only. For draft that stamina, Ross. All right, the data Queen. Jesse the money for. I'm full of BS until tomorrow. When we wrap up the week, goodbye.