Transcript
Yeah, come on, yes. Live. Live live. Itchy live from your ESG. Died. Non-alcoholic jello shots. That's just Jello, it's a business pants Friday show here at June 19th, featuring know, June 20th, Studio 20th. June 18th was yesterday. June 18th was yesterday featuring analyst whole map Mascari? Whoo. Happy Juneteenth yesterday. We took the day off because of June 18th on today's weekly wrap up. the first case of CGI and CEO pay at Warner Brothers, Fridge. Cigarettes, fridge cigarettes. Tech bro. Cash burn. And Tech bro. WarGames Not sure. I like either of those, our show today is being sponsored by free, float, analytics.com. The only platform measuring board power. Connections and performance for free. Yeah, no. Not too long ago, you peeked in to some of the users, using that data. It's an interesting List. Have you looked recently, Matt, as I was that the numbers going up at least or what? Do we know what have we learned? I think we've added one user since the last time. No, I don't actually know. I haven't looked. I don't, you know, what the fact is. We're not good at that kind of stuff at this company. Yeah. No one cares, right? Like, like, I don't do out there. We don't do promotion, we don't do social. Look at us, we don't do marketing, we don't do advertising. The three people who listen to the show. We went to VC's last year. We, we made pitch decks. We talked to VCS, we've shown them. Our data. We, we were all over the place over 100 that we, we sent things to, we talked to over 20. All of them passed. Because they didn't think anyone care about directors. They really don't think that or they didn't want you here like either they're on the boards and they don't like what we have to say. Or they don't think anyone actually cares about who runs companies at all. I'm not joking when I when I, when I'm saying that we've been told to our faces, that no one cares about this. Well, that's why I suspect there. They're trying to continue this. This notion of not letting people care. They don't want people to care. well, so when it comes to like checking in on the users of free flow, analytics.com, You know, I check in every once in a while but I know what's on, there is the best that you could possibly get, really if you're if you if you think humans matter at running companies this is the place to get the information and it's free. So I don't check in on you, we're not going to spam you with emails, there's no risk. You put in your favorite email address. Not the one that you you know, you went to dumpster fire.com and they asked for a login information and you give them some you know your lamest email address, put in your favorite email address. We don't even send you emails. Yeah I never get spam and let me say occasionally I asked or listeners for answers to questions and they actually answer. Okay just because they're, they're super smart. Let me put this out. But anyone actually likes things like social media advertising marketing and and believes in what we're doing and wants to help give some advice reach out to me somehow. I don't know how but reach out to Damien. Talk to him on LinkedIn. I hate it. All your check. I would listen to your advice, I need it. Come on, let's do the Friday show. Come on. All right, let's do it. This is what we are good at. Data. Research. Stuff like that. ESG stuff. government I will say is I did not like this week, you know, like any week I know it's been hard. It's been hard. I got some strange stories this week. I feel like corporate news is taking a break. I don't know why. Like in the last like ever since the musk Trump Feud if that's what what it was. There are no headlines anymore but anything Is that feels like I mean that's good like we are planes crashing contemplating like world war three with political news that's world news at geopolitics. I'm talking about like just the business news. I mean, it could hurt Trump's cryptocurrency Holdings somehow. All right, ready for this story is the weekly stories that weakness. Yeah, let's do it. And no particular order as usual, I had to start with this one. Here's here's one of the headlines Warner Brothers, Discovery rework, CEO pay reducing, David's massive compensation. I want to really like this story is like the third time. I feel like you brought it up second time, For the first time was in The Good, the good game, right? But this is risen to stir of the week. I want to just quickly show you how some of the other headlines covered the story. And I one of the reasons why they're covering the stories, I think, because he runs a media company people, the two types of industries that people love to talk about are either Media or Tech, right? So Social Media Tech or media. That's it. No, one else like to talk about anything here, the headlines David Zazzle will take a pay cut with a big hit to his bonus. Getting a pay cut. Warner Brothers to significantly slash pay to drop. Pay to be suspicious, substantially lower. These are all the different headlines. All right, now in a nutshell, Matt Here's what happened. 60% of shareholders voted no on, his pay a couple of weeks ago. The company has already responded. Part of the reason why they've already responded is that the company is actually splitting into two publicly traded entities. So here's, this is a weird one. So here's what's happening. They're reducing some of his annual targets, right? Which means that previously he was making about 50 million dollars a year. Now, he's gonna struggle to make maybe 40 million dollars a year, if it's 200% of his targets. I mean, there in a sense. Yes, they are lowering, some of the targets of his pay plan, okay? That's I guess I'm okay with that. It still is, can see, he's still conceivably overpaid but that's that's not the real Point. Here, the point of the story, here's why I'm focusing on the story is that buried in the footnote and we're at what everyone missed about this is that he's also getting 20 for Million stock options, 20 for Millions, stock options. And at a very low exercise, price of ten dollars, ten dollars, and sixteen cents. Now, I did the theoretical math. If Warner Brothers share price regained his 2021 high of 77 dollars which is in 77 out of the question, okay? It could happen. There was only four years ago, then he will theoretically gain 1.4 billion dollars on these options Matt. So I I have to ask how on Earth is this a reduction in Pay? I just don't know how they're, I don't know how this qualifies to a slap on the wrist. I don't know how this should appease shareholders. I and I don't know how every single media Outlet missed this part of the story. I just don't get it. So I I'm gonna even 24 million start know before you begin at, when I used to work at the, the corporate library as an analyst, The there was a theoretical threshold that we call a mega Grant of our options. We considered it outrageous. We considered this number to be way too much and we'd always point out and that was 500,000 stock options. We considered to be outlandish. And we would always point out, this guy's getting 24 million in a down year after after, after he went for the struggled last year. So let's I mean even even just looking at your math. If it does hit a 77 dollar High, the difference between the exercise price at ten dollars, which he would be able to buy the shares at ten dollars and 16 cents and then sell them immediately at 77. If it hit that high, it's actually 1.6 billion. So the bathroom. Yeah, you're you're giving him less? Come on like, give more credit. Yeah, I thought the billion would be the thing that shook you the most, but if you were to split the company in half, because he's only gonna be like, owning half the company. Does he end up here too? Doesn't know 24, he gets 20, what is it? 21 million shares or 24 million shares. What is 21 million? 21 million shares? Oh yeah, right. He's reported its reported, two different ways. Yeah, go ahead. Does he get them? At Warner Brothers Discovery before. It splits. And therefore when it splits he actually gets 11 million shares in the other company. Well, that might actually do better, it's like the split it might, arguably is gonna be better for them. It's a, it's a good question. So what's actually happening is he's and this is where the reporting is also confusing is that he's actually getting a one-time inducement of 21 million stock options. And then on January 2026 is getting another 3 million stock options. How about that? So he just gets another three million just just for getting 3 million. Yeah, And it's insane. I mean, this is, this is the punishment for, for shareholders saying no, to his paid. This is the punishment, the punishment is, the payback is probably 10x what they were and this year, and let's be honest summary, let's be honest, when a share price is so low at 10 dollars per share and only has one direction to go which is up, right? I mean, it's even if just a stock market just goes up on its own, he's gonna, he's gonna Get even just goes to 15 dollars. Now, just because the stock market is up, he's gonna get 100 million dollars from those options. So, so he's definitely getting the split is not slated to happen until mid 2026. They haven't announced a day, but there the latest reporting on it is sometime middle of 2026 which means he will have 21 million options now. Yeah. He's already gotten the three million in January. So, 24 million is what? Probably a slightly different price. Sure. But not much higher. Stupid, right? Like right now, the stock with the stock is trading at 1075 or something like that and the initial strike price was 10 16, right? So already, he's in the money for just, for not for nothing happening. He's in the money. Yeah, congratulations to him. I mean, he shares though of the unsplit company, which means he is getting to own effectively. How like shares in the other company despite not being CEO of the other company, because Greg Weider felled is supposed to be the CEO of the, of the global networks version, the bad version, right? Like, isn't like the Because it's supposed to be two companies, right? It's going to be the, the streaming company, right? They call this streaming Studios and then they called the global networks which is like CNN and TNT. Nobody wants Zazzle off. Got the streaming HBO good one. That's what. He just put himself in charge of HBO and the streaming movies. Yeah, Gunner weed. And Fells gets the networks which is nothing Burger. In fact, basically in fact, I guarantee that. So currently the HBO is called Max. That's, that's the name of the streaming at Max. Now, I've been joking for a while now that like, why are you hiding your biggest brand, which HBO that's the brand that everyone loves. There's basically two brands. People up, HBO Netflix. I guarantee that they're gonna switch it to HBO within the next year and then the share price on that day. Alone will double. Yeah, just gonna be just by renaming an app. He's gonna make. Here's 100 million dollars. Here will be the genius trick of the board and Zazzle off. if Zazzle of can somehow say, because he's the CEO of the streaming, And they split. So the arguably the price of the split as soon as they figure out the pro-rata share of the split. They adjust the options downward know for the price of the one. He's the CEO of and they say because you're the CEO there, we're going to give you all the options on your company, right? He announces immediately that HBO is going to be the name of the brand which it right. It's been since the 80s and still should be so it's not exactly doubles. So like pretend it's like half halves these, right? So it goes down to like five dollars, you know, 550 a share per company and he cuts his, his options down to, you know, have Z, five dollars, a share, it doubles overnight, He is going to make the billion not like three years from now. but like, by next year, He'll be on paper, he'll he would have, he will more than double his money. I just the best PayPal package ever. I just want to know how no one, no, one picks up to even, like, does it even an article and Seeking Alpha. Nobody picks up Fortune. No Financial Times. Nobody picks up on the stuff, I don't understand it. Oh, because it's it because the headlines are still confused by stock options. Yeah. The number is lower today, the deadline and we can move on from that story. That's the first story of the week. I don't have a lot of nerdy stories this week. Yeah, I've turned around. I I know why you brought it up so many times now. Um, now this is not a conspiracy theory, this next story and I know the way I phrased, this is very, it's very suggestive and I didn't really mean it. I kind of mean it. I kind of don't mean it but I'm just gonna say it how I wrote it. Boeing's. Longest tenure director. Lynn good. Okay. Yeah, who's been there since for, at least a decade, right? Yeah, 2015, 2414, maybe, maybe earlier, okay, Lynn Boeing's, longest tenure director, Lynn good joins the board of Morgan Stanley. Just two days after the crash of a Boeing 787 Dreamliner in India killed more than 200 people. So you think she's escaping know? I'm just I'm not even saying anything. I'm just saying, I just that's the story. That that's the story. Wow. Two days after. Those those board appointments take months. I'm just I'm just pointing out what happened. I'm just pointing at the sequence of events. I don't know about that Lynn. Good escapes, everything that linga escapes is the better. I mean, maybe we just talk. Can we just retire all the old Boeing directors? If you've been a director of Boeing we just get rid of you basically anytime since 1997, you should probably not have a job. I mean in general, right, letting kids already doing well for herself. She was the she was the CEO and chair of Duke Energy forever made a really impressive PayPal package. There, what are we doing? What how does a director fail, Matt? We what we've seen over and over again, they get they get voted out, but they stay on the board, the company's collapse, but you're holders, don't get rid of them, they, you know, planes are falling out of the sky. But they get appointed to one of the biggest companies in the world, like, what can they do? What what, what what, how do we how do we punish a director for any? I mean, if a third baseman makes an error, at least, Someone's gonna throw like some popcorn on them or something. Can we throw popcorn on Lin, good? What can we do? You know when a third baseman makes an error? They Boo. There's a column on their baseball card that says e. Yeah. Right. Like yeah they report on count the number of times they screw up. Yeah, these directors go from board to board. They could screw up every single year and there's virtually. No accountability. If anything Boeing should be the cautionary. Tale for. What happens when you don't care about a board at all to every VC out there. The the way shareholder value gets destroyed, Is not like you hire a direct or tomorrow. Shareholder value is destroyed. They either enable decisions to get made. Facilitate them, they are or they are active participants in. The erosion of Cheryl value over years. The average tenure of directors, seven years, Most directors, who, if you make it into the big League's, if you're in like league, three and four on free flow and analytics data, which is basically, you know, large and make a cap companies globally, you get a 14 to 17 year. Career on boards on average. That's the average, which means a lot of directors once they get to the big leagues, they actually last longer than that. That's a lot of time to destroy companies and it's the slow death. We don't see the slow death. It's just like in Inconvenient Truth, where they showed the Frog, getting boiled. So you put the frog in the water? It doesn't know. It's being boiled like Lynn. Good. Point. Yeah, lean good is basically like if you're a shareholder link Goods been slowly boiling you at Boeing for 10 years that's all I'm saying. That's the way I'm saying it. I like it. That's a second story of the week. Third story. Just because this felt like a very summery story. I've seen a lot, there's been a lot of protests across the globe protest at over tourism. That's what it's called. Oh, yeah, this bit, there's a real, there is a real problem with tours live in one of those cities were, were the, the presence of of tourist economy is driving prices up. It everywhere. Not only with just like regular goods and services like restaurants but rents the price of home's like it, it really, it really affects these economies and really a negative ways. But here's the headline Airbnb. CEO, Brian chesky. Says his company is a quote convenient scapegoat and quote as European Cities protest over tourism. Here's the quote. I like he says in Barcelona. Housing. Prices, Rose 60% over the past decade. But Airbnb listings, actually decreased. So we can't be the culprits. See, I see the way that that's it. You can't, that's it. Simple. It's simple CEO math. Let's say, simple CEO, like, Hey, we're not involved. Don't look how much money I'm making. Don't worry about it. Like, that's it. We can't, we can't be the culprits. It's cannot be us. Despite the fact that cities across the globe are creating laws to deal with Airbnb but I don't know. I just I know it's a weird week for headlines but it's it's a weird. I want to do a summer though. A summer. I will say, I guess in chesky's defense, Harry, it's a weird thought. because, Like I guess what he's saying is that people are buying houses just to run them out. Like what are the problem? He's arguing that people. You know, the argument is people buy houses just to turn them into Airbnb. So that more tourists come in. Yeah, that's part of an occupation standpoint. Isn't it? Kind of the same? Like it's like the same amount of people are there. I I mean I get it similar people I have a hard time well but more airbnb's available. Doesn't that contribute to more tourists coming in? Yeah, when they're full and then during the winter or off course season, then it should be less, it should be less people arguably, right? Like it's not like somebody's occupied if there are off seasons for these cities anymore. I don't even know, I don't know about Barcelona, but yeah. West Hartford Connecticut. There's definitely my question is, when do companies When are they? Accountable to their stakeholders ever. Again, we're talking about capability. When is air is Airbnb. Accountable for anything to anyone. So, cities are making laws directed square at this company. When is Brian, chesky going to be a kind of a for anything as my question. Wait, when is it about his company? Well, It's never, I don't, I don't know how to answer. It doesn't matter anyway, because I'm pretty sure Airbnb. Airbnb is a tool class company anywhere, right? It doesn't matter. So it probably doesn't matter anyway because investors don't even have a voice at this company. Yeah, that is a public company is the real track. You know, the other reason why I picked this story is because it's, it's there's a greater problem in our society where we're seeing a lot of these Tech Bros who are, who are fixing problems or quote unquote fixing issues in our culture Like, Airbnb, CEO, Brian chesky, mostly you see it at tech companies? Like the Mark Zuckerberg's in the world, they come in, they quote unquote fix things that no one asked to get fixed. They make exorbitant amounts of money. They have huge shareholdings, they have dual class shares. So there's no investors, can't say what they're doing, and meanwhile, Society changes practically overnight and we have no way of fighting back. The citizens don't have a way of fighting against investors. Don't have a way of fighting back, that's why I just died. Okay. But it's a problem, I mean we're seeing this over, you have a story later that you know that where some of these CEOs are not getting involved with like defense and wore. This is a problem that's always after the fact, what's fasting to me about these, that the idea of the fixes? She to your point is that like, you know, Mark Zuckerberg fixed having friends, you know, we had friends before you fixed it and now we have a loneliness crisis. Now, we actually have the opposite problem. Ryan chesky fixed our ability to like go to places and then be tourists, you know, people went places before you, right? Like, did they have zones actually a massive problem and there were zoned to come and stay in certain parts of the city and they weren't irritating neighborhoods. And they were like, you know, they were and how houses were left empty for 10 months of the year because no one was living in them. Like, they were fixed transportation, we had taxis and public transportation. Prior to Uber, we had unionized driving forces, and cities, like New York City. Yeah, we had, you know, we all was that true? I'm not saying it's the myth of like, the of friction, right? Like your life had friction before you had to wait for the taxi for, you know. And our I never said, you know what I did? I I combined two problems which was friends and needing to get somewhere. I called the friend and had the asked if they could drive me to the place you want to. Get Subway. Yeah, right. Like, it's really, we've actually created different friction by solving the friction problem. That was perceived, I call. Yeah. You know what is? It's like the Shark Tank of occasion of American Business, where we, where entrepreneurs and Founders are looking for any little sliver of entry into our economy and just like, Ram rotting it down people's throats. Like they're not actually fixing anything but they're seeing as an opportunity to sell something. And that's really what we do here best in America, right? We, we convince people, they need something that they don't need well, but but then these individuals, the Brian chesky's of the world, right? They, they act like they're being persecuted because they think the ethos is we solve the problem Untitled. Problem unfettered capitalism? Yeah. Right, we've we went out there. We used our brains and technology and Fixed this big problem that was, I don't know. There weren't enough hotels was the problem for Airbnb, but there weren't enough taxes. The problem Uber solved, they're like and they they do it with all these grandiose words like Uber's mission was like, moving people around the world or like, you know, it's always something like that. But the reality is after you've solved the problem and your solution doesn't actually improve anyone's life, after you've come in and people are upset because you promised you were solving a problem. You said you solved the problem, you've made billions of dollars. That's the back of this problem. You purportedly solved that isn't actually solved, my life isn't better, Trump doesn't get elected. If people in this country didn't think their lives were worse than they were before. That is largely in the purview. These Tech Bros who fully believe that, they've solved our problems. And now that we're React them, they go out and say, we're being persecuted, and they align themselves with the trumps. We align ourselves with like someone who wants to tear it all down. Because, you know what? We solved your problem. You guys aren't grateful. So everybody go fuck yourself, right? Like, it's like that. This baby man attitude that you went in. It's like, you built a three-story shed and everyone's backyard and no one wanted a shed, but she said, this shed will solve your problems. And then we look outside and we're like, I can't see the trees. Like you, you are so ungrateful, like that capitalism, do its thing, and here's my problem with it. Here's where I might be okay with it. I, I would like, I would support this sort of, you know, unfettered capitalism that they all want. Is that it's, they're cheating at it. It's a sheet of capitalism because, and this is why I wouldn't have picked this. If this was a Microsoft story, I wouldn't have picked. This was an apple story. I'm Picking this because it's a Brian chesky Airbnb. Story, the three co-founders of Airbnb. Joseph gebbia, Brian chesky, Nathan, black car chick or whatever. They control 80% of the voting power because their shares magically have 20 votes per share, that just should be, it should be outlawed in our Capital markets, maybe allow it for the first few years. After the IPO, whatever, let them get their boards set. Even that I'm kind of against but there should be sunset Provisions, Sunset, Clauses, and all these shares. There is just no way that Brian chesky should still have a voice at this company that that precludes the intervention of investors or any kind of oversight. That's not fair. That's not right. That's not regular capitalism. That's about to your point, right? Like I actually think there's a behavioral thing. If you are a Founder, who requires 10x or 20x shares. That actually says more about your ego, your vanity, your your, your your narcissism your lack of self-esteem. Like we're gonna cover on back to back shows today, we're proxy countdown. I'm covering Nvidia and Jensen Wong. You know what? He didn't have. He didn't have dual class shares. You know what? Like, there's so many not even Elon Musk had dual class shares. He had to capture board as Nvidia does. Sure but they didn't have dual class shares. If you're Brian, chesky, if your Mark Zuckerberg, if you're Evan Spiegel, if you're Daniel Eck, if you're Sergey and Larry, what is it actually say about you that you require and will not give up dual class shares to maintain control over your fake public company? Does that say a lot more about your fears than it does about your abilities. Like, if you're that good, you're going to get voted in every single year. No One's Gonna ask you to step down, not a problem. But it does seem that there's a correlation between dual class shares and horrible Behavior, because there's no accountability or else, you know, other board. Joseph gabias serves on The Tesla testing are, that's the third story of the week. Oh my God. There's another one. Well, the fourth one. I chose this. Because we're talking a lot about these boys. These these these College Dropout type boys, who control companies And because it's a topic, that's not covered enough. It's a topic that I kind of try to wedge in all the time. It's a, it's a topic that I think people should be constantly outraged about. Because maybe, if we were Maybe it would. Help. If although it doesn't seem to help with the climate crisis, right? The outrage doesn't seem to help at all but okay. Here's the story. The headline corporate Italy lacks female CEOs, Stock Exchange head warns, of course, the stock warns, of course, the head of the stock exchange in Milan is a woman Claudia persiani but she did. She said last year we probably reached the lowest level of female CEOs ever. And this is a cultural issue that the business Community needs to fix. Of course, the article actually presented. No data. So, I, I, you know, again, another myth by Fortune. If you gonna, you know, have a story like this, which I appreciate it. Give me some data. But anyway, that's the headline and then there's another one. Out of Australia. Australia's highest paid CEOs revealed and there's one woman on the list so I get I'm just pointing out that that eventually eventually we need to pay attention to who runs our companies. Not only that but eventually I'm not I'm not a math, major know but can I just say, Well, when the 50% of the population is women And women disproportionately are more educated and are like better qualified like going to school getting master's degrees phds and have and have leadership attributes. That we know benefit more stakeholders including shareholders. How is it mathematically? Better manage yourself and yeah, I like it as CEOs. I don't know, especially especially when we. What is the figure up to now, even in America, what is it? Do we know how many women on the board of American companies. It's got to be at least 30%, we're getting close to 30%, right? Women on the board 30%, right? So 27. So we think, at least there should be 27% of CEO, should be a woman at a minimum, right? I mean, if there's a pipeline it up, Right? If I rounded up all of the women who on paper are qualified, who like arguably or qualified to do the job of CEO and all the men, you'd have roughly 50/50. If I threw a dart at that dart board, I would land on woman about half the time, but the Fortune 500, it's like 12%, female CEOs, and that's the highest it's ever been, is there? Is there a different dart board that I don't know about like, is it? That's just that's just pure evidence of systemic. I just right? We just want a man to make decisions. I just don't know why this is not, I don't know why. This is not an issue. I mean, look, the for years women on boards was the issue that we were allowed to talk about. Of course, no one talks about it anymore. No one. They've been silenced. And they've given up so they don't they don't scream about this anymore, but no one's ever talked about the lack of female. CEOs, that is, that is verboten, we can't well know, every year there's one story about how much females, CEOs. Every year we had a coalition, we had coalitions of like, let's get all boards at women delicious. Yeah, we don't do Coalition anymore, Cole's are discriminatory against white men, you know, and I wish I understood. Why the board was a great starting point actually because the the logic was that you there by increased the pipeline to power. If you have, like, I, I would apply Europe, there's a lot of mandates in Europe, 40% women on the board. You see that in Scandinavia you see it in places like France, but but as our data has pointed out Matt is that that pipeline actually is a disaster because and you only find this data free flow, analytics.com, is that they actually these women have no influence and no power on these boards. So that actually the pipeline is not working. It's not that it's not working. Well, it's not that even if they're pipeline, if the talent pipeline exists, you you're not leveraging it. Right? Like as in but it's not working, they should be running these cars because sure because they should be, there should be after a while. The idea was that if you had 40% women on the board after maybe like another decade, you would start to see a gradual increases in the amount of women as leadership named executive officers and CEOs. We're not seeing that we're not seeing significant increases in those areas. They're not being promoted. Anyways, sorry, depressing. And first, I don't need it to be depressing. I meant to be a call to action. All right, come on. Give me a vote on the story of the stories Horror Stories. The Warner Brothers doesn't actually gave David devs on any more million option. David zab's loves pay cut is actually a pay increase. What was this story number? How many United Healthcare CEO the boomerang CEO Helmsley get that we were completely got 60 million dollars worth of of shares. I believe they gave him the number. It was like 60 million worth of shares. It was fewer, it was fewer. Audrey here this right. It was fewer share shares, and they vest three years from now with no performance. And we bitched about that for a while. This is even more than that. This is even more the conspiracy theory of Lincoln Stanley. Like, it's just say, what are we doing? What are we doing? Like, what are we doing? Brian chesky's, not responsible for things, and can't be the culprit Italy. I love everywhere else. We have just says, we can't be the Culp, we cannot it cannot be us. I can't choose women. This is not a one week problem. It's not a story of the week, this is a story of forever except that there's a there's a woman brave enough in Italy to actually challenge the patriarchy there. But that's a whole nother story. I think the Airbnb story is also like multiple you just like that. He said we cannot be culprit, we can face on Facebook. On one data point of Airbnb, listings, decrease, I don't even know the decrease of it could have been one. It could have been one, one one thing went, but I just love it that automatically. That's the reason it's like, cannot be us which leaves you with Lynn, good, which is really hard to choose this story along just 10 years now. Overseeing three catastrophic, Boeing crashes, that's all I'm saying. Congrats to her three. Like it's over. 200 people each on those. Yeah, but it's rare in life. When you get to see oversee, three are Castor fees and don't get voted out just this week. Just as weak Airbus is destroying bowing over there at the Paris Air Show and sales. I wish we would if You thought of these people as politicians like and they had three catastrophic failures like like that resulted in directly resulted in deaths and it was on your watch, you were supposed to be overseeing. It like the police department blew up three churches accidentally and over the course of like six years while you were the mayor of the town, would you still be mayor of the dentist? If you're a basketball player. And, and your team is sponsored by Nike and you're wearing like an Adidas shirt to a press conference. They'll ask you to cover it up. Why can't Morgan Stanley say to Lynn? Good? Hey, you can join our very prestigious board but you you gonna have to resign from Boeing, can you resign that, can you resign finally? Like it's enough like it's a story of the story of the week is as long as we're oh my God this is the longest show ever. I didn't do that. And I promise to shut up, I promise. Well there's only three good lists here. Why don't you go first? The headline, what is a fridge cigarette? A new term for Diet, Coke, gains traction. I love this fridge. Fridge, cigarettes, fridge, Diet Coke. The new fridge cigarette. It. That's from The New York Times, that's from The New York Times, must be important. Is it somebody? They do Wordle. They do Wordle, so it must be important. All right, I've got two. Here's the headline. Lawyers, just discovered something about meta's AI that could cause Zuckerberg Untold billions of dollars. What? It spits out large portions of books verbatim. In fact, they just asked llama right issue to correct? Its it is not only is it copyrighted, but they claim that Zuckerberg was the one who claimed that they should be able to steal every book. Yeah because no Valley divisional. Value of a book is near. No value it just reproduced 42% of Harry Potter, word for word out of the book. This is what happens when you're College Dropout, like Mr. Zuckerberg is, you don't understand the event, the cultural value of Humanity's you just don't it doesn't what? You don't recognize suit like unlike a lot open AI is at least clever enough to to like avoid their, their models doing that Zuckerberg could care. So little about the value of your information here. Copyrighted material that they're going to soon now and it could be a really big deal. Maybe that's what else, here's my other one. Disturbing Test shows. What happens when Tesla Robo taxi sees a child mannequin. Pop out from behind a school bus? Oh God that's another video know it's but this is another one talking about like Tech bro. Fixes for a culture who asked for driverless tax, I didn't need I I rarely not. Do I need a robo taxi? Yeah, I don't better off like giving everyone a bike if it's coming. The amazing part of this video is so like by a group that they actually had an ad during the Super Bowl and they showed like, you know, Tesla self-driving, like, run over things and hit baby carriages and stuff. This is they show a parked bus school bus. Yeah, they do stop sign as you know, like you know, the school bus. Oh yeah, stop sign flap. That comes out the blinking lights. Not only does the Tesla not stop for it. The robo taxi, doesn't stop well. Just stop for a bus. But then they pulled this man out from behind the bus to like cross the streets to represent like a child is there representative child and the robo taxi, not hit the child. Stops and then proceeds to run the child over as it goes like maybe stop because it was like oh something happened and then it runs the child over and they did it with like a half dozen mannequins. Maybe it was a woke child, maybe it was a Democrat. I just thought it was great. It was a great video. Like I mean, sure it's disturbing but come on, it's like it at some point. It's like this is the future. We all wanted from our Tech Bros. This is the frictionless, like the sarcasm. The winner is what's the winner? The winner is fridge. Cigarette, let's move on. Come on. All right. Let's do asshole. As I'm gonna shut up. Oh, here's a good news. I've only got two good and the other good news, is I promised to shut up. The two I have are are relatively the same actually still showing up go? I saw this headline musk's XI Burns through one billion a month as cost pile up. Is that a lot? It sounds like a lot. It's 12 billion a year, so I actually look through the burn rate of these companies. The xai open AI anthropic as a three big ones, right? The burn rate of xai is currently around 12 billion. This is gonna bring this almost next, this xai. This is his AI come. This is not, this is must say yeah. Okay, um and and this is what they say on their website just in case you were confused about what they're supposed to do. We build AI specifically to advance human comprehension and capabilities and musk says additionally they're using. This is a part of SpaceX that the overall vision is to go to Mars because it will quote save Humanity as he continues to push for push human extinction. What gives him the credentials to advance human comprehension and capabilities and save him like where where does he learn this? Where what Right now, like what does expertise in this area? Thank he read like and ran all yeah, really. Well, what is his expertise? This is not. Um, he sounds like a crazy guy. Sounds like a villain from a movie. I think they all are okay. Oh he's burning through 5 billion a year and they say on their website openai is an AI research and deployment company. Our mission is to ensure that artificial general intelligence benefits, all of human. It's a little bit better of a mission anthropic burning through about three billion. And they say, quote, we strive to make decisions that maximize positive outcomes for Humanity in the long run and they act for the global. That's a bit more honest, the striving. Okay. So do you notice though all of them are burning through cash billions collectively, they're burning through 20 billion dollars a year right now. We need that for the global good. Yeah, the goal is the global good. That's the goal, 20 billion dollars a year Global good. Well, I looked up and the low end estimate to end world hunger per year. Can go as low as 7 billion dollars true, then why don't we do that? Because nobody cares like that was the low end estimate? Like if you want like actual good nutrition? Yeah. Like it's it's in the 100 billion dollar, okay? But starting with something is good. The World Bank estimated that clean water for all of humanity would cost 150 billion dollars a year. Yeah. There are 19 million if you just cared about the us, there are 19 million households in the US that don't have water acts. Wow, I did not know that 19 million. The compliance cost for the Clean. Air Act is 65 billion dollars a year. I see where you're going here. All I'm saying is that we are burning a tremendous amount of money energy time thinking on a thing that purportedly for the benefit of all Humanity. Again, we are doing this. We will save. We are fixing human problem. Yeah, there's some big problem. We are going to fix it. We tech people know how to fix your forgetting. The other end of this which is a bunch of VC Bros and Silicon Valley, hoping that to make a 1000 x their investment. Well. There's also the unintended consequences of them getting 1,000 x. Their investment, which include. Here's just the headlines from this week. This is just this week and it's exhausting. Yeah, go ahead. Lowe's. CEO says, young workers. Should stay away from the corporate office and close the close to the cash. Register get that one. So that Marvin Ellison said, quote AI isn't going to fix a hole in your roof. It's not going to respond to an electrical issue in your home. It's not going to stop your water heater from leaking. So what AI is going to do is every job that people prefer to have where they sit at a desk and they move paper around, they have a coffee and a bagel and it's nice and it's relaxing, and it's this middle, like, middle class, you know, up, white collar gig. They are now going to have to go and crawl spaces and fix electrical boxes and get shocks retire early because of the damage to your body. From doing this go climb on your Roof and fix the hole. That's what you should say. Your time on. I don't like this sequence of things, he pointed first of all, yeah, fixing a hole in your roof. Sounds dangerous. And then we have an electrical issue and a water leak like that. That's a, that's a recipe for disaster right there. Yeah. Really like the worst that things that people no longer want to do are not the things that we're solving for the benefit of humanity. Costing 20 billion a year, Amazon CEO, Andy jassy just told employees, expect cuts to White Collar jobs because of AI. So, all the people who, like, do the computer stuff at Amazon, they're all going to get cut. But, you know, the jobs are going to keep the ones where the people have to pee in a bottle because you don't have bathroom breaks because you have to get this object from point, A to point B is fast as possible so that people like get Rubber Chickens fast did. Man, this is the thing that scares me. The most is all these Tech Bros Envision a world were essentially, the there will be a lot more people who don't have to work like, right? They'll just be getting like a Personal basic income just to exist because AI will set them free from work. But the the worst thing in the history of our culture. Since day Zero is men with nothing to do with oh my god, when you not do that you put men out there with with absolutely nothing to do. They don't get tired from labor or exhausted from mental efforts. They are nightmares. They are just I fear the most like I don't idle men. I don't want that. You're totally, you're not wrong at all and the big con here is you notice the shift, the white collar jobs are going to go away and the blue color jobs. The stuff that's like hard and no one really wants to do if they had choices like the reason why people spent we spent a hundred years saying go to college. So you have options. So you don't have to do this work so you don't have to go up on a roof and fix a hole. I'm not saying that's not valuable labor or that's not like noble labor. But trust me, when I tell you the people everyone I've ever met. I worked in construction for a while. I painted houses for a while everyone who was like a lifer wish they could do something else. They just they did not want to do that anymore. Yeah. Is it hurts? It's horrible on your body dangerous to some of it and in fact I just read that there's a story in the times yesterday about black lung is back in Appalachia because they're they're back in Coal Mines, right? Like so, so now they're dying young, people are getting Black Lung. And the great Khan here is when it's the white collar jobs that are losing their jobs. We have not been able to get a living wage without unions for Blue Collar jobs. How fast do you think Universal income becomes a thing when, it's the white color job that now are displaced because he used to be for hundreds of years, we would use a robot to display a blue collar job. We would replace manufacturing with robots. All the jobs that sucked. We were steadily replacing and making like, fewer and fewer people. When you fire, Amazon's like, like middle class, the white collar middle class. I bet you the debate on universal income actually becomes like, this is something we absolutely have to do. Bernie Sanders has been fighting, I'm not a socialist, but he's been fighting for like a living wage. That's not a socialist idea though. I'm just saying, yeah, he's been fighting for a living wage for as long as he's been a politician. Like it's just like stakeholder Capital. You know what? We're gonna get it when, like, the white like, like, white collar, white male middle class. They're the ones who need the money because they can't, they don't have any skills that they're not going on roofs. Well, I don't, I don't want to continue your rent here too much. But I thought what about all these robots? They're building old. The are they not gonna be fixing our roofs? What are the robots going to be up to the robots? Are going to be really, really good at like paperwork flips right now. That's what they drive. But I'm saying, like what they're gonna do, are we just heading to a future where both the blue collar and the white collar men have nothing to do? I think the blue collar jobs are a long ways Away. Okay. Just but But that doesn't mean that robots aren't going to do something because then I saw this headline as chat GPT linked to mental health breakdowns Mattel, announces plans to incorporate it into children's toys. Oh God, it's like everything. This is supposed to be helping the benefit of humanity and there's no way to fight back on this. There's no way investors can't fight back. How is the good of humanity? Mother Teresa made like zero dollars in her life? How is the good of humanity? Look like this, it ends with Dario ammonia as a net worth of 1.2 billion. Elon musk's net. Worth is 406 billion Samuel Altman's. Net worth is 1.8 billion. It seems like the benefit of humanity is really the benefit of a couple of tech Bros and we have to deal with the mess when everyone displays. Yeah. And there's idle men who are disgruntled, our children are in the middle of a mental health, Christopher good to that they're getting rid of regulators. They're getting rid of Regulation and the large majority of all these companies that you're complaining about. How no actual oversight. I mean, Elon Musk does not have a board that actually act independently of him. So that's option. Number one. Go ahead. Option number two. I saw this headline. Spotify's Daniel Eck leads 694 million investment in Defence startup Hellsing. And then really when you were looking at the pre-production notes, you sent me these two, have those palantir meta open AI execs to commission into Army, Reserve form Detachment to a one. These are Executives at the company who are going to be honored with a actual commissioned into the army. Yeah. As it as their own Detachment. Yeah, I don't. It read like The Onion that piece. It's it's from breaking defense.com but I think it's real, I think it's real. It's like remember it's like executive some palantir, open AI, yes and meta. It's a boss at meta, it's craziness and then open AI wins, 200 million, us defense contract. I don't like any of this. Can you explain to me? Yeah. The tech bro. Middle school man, baby thing. We talked about how they feel persecuted. Have you ever noticed when they're done, like saving the world or building their innocent Empire of like 3D goggles and we connect people and internet friends and look how easy it is to pay for things online when they're done with these, like things that are pretty, they seem pretty innocuous at some point in doing. They're like in their beds of dual-class. Billions dollars, they all invest in Defence. Well, I remember, as I'm glad you mentioned that I remember as a kid in Middle School. My dad was like Burberry. And so, you know, I was the kind of kid who was very interested in libraries. I used to have to the middle school, boys, were obsessed with books about Nazis, Hitler war and stuff, and I would go around the library and I would turn around those books. I would to the spine face backwards. All the horrible dumb, like Nazi war books because they were just obsessed with them and drove me insane. But you're right there. And none of these boys, especially the tech boys who go on to do these kind of office jobs. None of them joined the army. It's not like, they're actually listening. They're not actually for detachment 2001. So. Okay. All right, what else? But like they stopped maturing at age 13. Making me crazy like these assholes. You're making me crazy given us. This are quote frictionless world. Then go on. After they feel persecuted to take the billions of dollars, they made making our lives saying they made our lives better, but actually not improving anything. And they spend some of those billions to blow shit up. Watch us. Every move we make like, palantir does oral maybe. This is Lucky's and a role, maybe Elon Musk is right. Maybe we do need to escape to Mars because we need to escape from them. We have to escape from the tech Pros. I mean, we're all they are enabling us to kill ourselves. While telling us, they've improved Our Lives while buying large portions of islands that are inaccessible to us. Not forget that people, like, Elon Musk still to this day, say that, there's a, what there's a 30% chance, that AI will destroy Humanity. Like, there's still that can we use is, can I vote he's missed every single one of his cars? Can we vote? Can I vote? Yes there's all those are the only two, so it's technicals and tech company, AI companies burning through cash and it's the cash spent Rose investing into Wars defense. Spend other both. Asshole. The well, then see none of these are like stories of the week because their ongoing problems. But all of this, all the headlines are from this week, which has been insane part. Boy, they're kind of the same story or they not. Can I just that's what I mean. Can I just vote for it? Can I just vote for? Yes yeah that's the correct answer. All of it is the correct hurdle. All right, let's do headline news, winners predictions and get out of here. That's a lot to speak. It's the same length show as normal, but it feels like a lot. Let's get out of here. I have I'll go first, I have two. I don't usually talk about. I don't usually make politics one of my stories, although Just because this, we're talking about stakeholder capitalism. And we're talking about Trump early, we're talking about Juneteenth, we're talking about CEOs, but I had to point this one out on June 18th. Donald Trump says the US has too many holidays. We get with that. Is that's the anti-black messaging that we've all grown to love. So I'm looking at you, black people. You already have MLK. I'm looking at you target target. This is what you respond to and Target. This is why you're suffering by the way? So congratulations. Brian Cornell. But here's the quote from Trump too many non-working holidays in America. The workers don't want it either. Oh that's that's fabulously stupid but others fabulously stupid. But my real headline is the week is this a great one? Jamie dimon says, I love. Jamie dimon, says CEOs, can't expect everything to be constantly easy. Oh, I just love how he's kind of entered into his like senile. Warren Buffett. Phase of just saying stupid stuff. Well, I got my headline, is is also Jamie dimon says, go ahead. Jamie Diamond says, and actually this is the actual headline because this is why we call the Jamie dimon says, the headline is Jamie dimon says, creating a functional. Workplace means firing a holes. Seriously, that's what he said. Do we have any metrics about what makes an a-hole? Know, he just said, fire them. But what I would love to know the date, they must have data that there must be a point system where you become a full-fledged a hole. Right. You know what, that would have been my dream? Like, to be inside a workplace? Yes, 5000, people. And there's some sort of grading system on a wholeness. I would have been fired. Seven minutes after. Oh, like I like Jamie dimon. Let's move on. Come on. Who's when who's your winner for the week? Mine's easy. Based on the headline from CNBC that Airbus is dominating the Paris air show my Winters Airbus for this reason alone just because it's not bowing. Yes that that's how you succeed it is society. You just see you just don't be bowing and you're a winner. I'm telling you the I still think I'm still thinking back on it so far. The biggest news, the first half of this year was Sabrina, Susan leaving the Boeing board? She was the she was like, one of two people with any engineering background. We know he joined like a year and a half ago or two years ago she dropped out and then the Boeing plane crashes. Okay, right now, you're now you're causing conspiracy. He's an engineer she actually knows stuff all planes Linda Roberts, what's my winner? I actually I don't like saying this come on RFK Jr. Why? He announced that he's attacking pharmaceutical advertising. That's good. Yeah, that's that's kind of good. He's announced that with Starbucks. They are creating a healthy menu at a Starbucks changing. They don't need to sell food but go ahead, but but that's fine. It's fine. Okay, like I can't believe this is your winner like RFK Jr. Is the one member of the administration. No one asked about Iran, he's not involved in starting work with three. Yeah, I think he won. This is wrong crazy. Lost your mind. you know, it's all of RFK Juniors. Everything he's pushing for is basically what every first lady has always pushed for, and they always mock the first lady whenever the first let women would say, like, you know, we want to make America healthy, want to do more like, calisthenics or eat better. They mock them because they're usually the wives of Democrats, but what that? We love this right RFK Jr. All right. Come on boys. Um, well, what's your prediction? Mine's a convoluted one so bear with me. Bear with me, weird, text CEOs. Okay, you were talking about text CEOs, defense Tech Bros middle dropouts, they're idiots their children, okay? So Tech CEO, start wearing military hats, right? Oh, I like this Castro was famous for kind of wearing like a generalissimo kind of hat so he would wear for teens. Remember, he would always have a girl because a revolutionary, he was a taxi. EOS start wearing military hats, okay? With the main decal, right? In the middle, being a digital number that it took up to a satellite. It represents their To calculated to the second based on current share price. So we so, for for Sam Altman, for instance, it would be 1.4, that would be the his bill number. Because once you once you're below a billion anyway, you can't, you know, get the way that right you're not they take the Hat away Gold's there. Be gold stars in the Hat. They would be represented by how many votes per share your class. B Holdings represents. So Brian chesky gets 20 votes per share so we'd have 20 gold stars, gold stars, wow, and then, there'd be Stripes stripes. The stripes are a little bit weird. They represent how many years of college that you did not attend. So, so, bear with me, if you dropped out your second semester of your first year, you'd have three stripes because it means three and a half straight. Well, okay, maybe maybe half right half? Yeah, it depends if you, if you actually got full grade for your first semester, we'll look into that. So that's it text CEOs, wearing, okay, stupid, hats. I thought mine was convoluted yours. Is way more common, my Should have happened. Mine should happen. Yours prediction on the show. Here's my prediction. Boeing. CEO, Kelly ortberg. Reads a paper an academic paper, this academic paper, just came out at the title, is chief executive officer machiavellianism and Executives about how CEOs you act like Machiavelli. Not only make more money, but they are actually more successful over time. And he decides to take Machiavelli's advice. He fires half of bowing. Okay. Just in one day, fires, half of Boeing. And he gives the other half. Free donuts on Fridays for the rest of the year. Because as Machiavelli said, quote, The refunds while benefits must be dispersed, little by little so that they will be savored all the more you lost your mind. Which one is a stupid? I don't even know. Yours is. That's his Limitless. I'm here at. We are free float. Come back. Not next week. We are on a break next week, but we will be back the week after that the week of July 4th to celebrate the holiday until then good.