Across the Board
IBM CEO: Never Returning to Everyone In The Office…
"Only 20% of IBM’s U.S. employees are in the office for three days a week or more….CEO Arvind Krishna added that he does not see a scenario where the balance ever gets back to over 60% of workers in the office… In an earlier tech era, IBM was one of the first major tech firms to embrace remote work before it was common, with at one point in the 2000s as much as 40% of its workers remote, but it ended up reversing course and requiring workers to again be based in offices in 2017. Now, the paradigm has shifted again." CNBC
… As Yelp Doubles Down On Remote Work…
“Yelp, an app that recommends local restaurants and services to users using location-based services, is closing its offices in New York, Chicago and Washington, D.C., as part of a move to double down on remote work. In an interview with The Washington Post, Yelp co-founder and CEO Jeremy Stoppelman called hybrid offices ‘the worst of both worlds’ and noted that two things have become increasingly clear following the pandemic: Workers want to do their jobs remotely and the company benefits from meeting the demand. Stoppelman acknowledged the growing popularity of hybrid policies — in which employees work from the office part time — but called them ‘the hell of half measures.’” WASHINGTON POST
… And Pundits Offer: Don’t Stress About Remote Work Policies, Embrace Them
“Covid-19 has created some interesting shifts in the way we work, especially for those starting in a C-level position. A new CEO has so much to think about–the first 30 days in the CEO role can be overwhelming as a new leader dives deep into every corner of the business. One thing they shouldn’t have to worry about is whether to embrace remote work for their employees. As someone who has been leading remote-first companies for more than 15 years, I can confidently say that many people are far more productive working remotely. … If you’re a new CEO considering remote work for your staff, I encourage you to embrace it because remote work provides numerous benefits to your company.” FORBES
Climate Activist Investors Sidelined This Earning Season
“Earnings season has ended and there is a sense among environmental campaigners that there has been a backward step in efforts to get companies to take more action on climate change... This year’s earnings season took place against a very different backdrop. Oil and gas prices are at record highs, prompted by Russia’s invasion of Ukraine, and the focus has switched to energy security rather than cutting emissions… Some key players were downhearted at this apparent change in fortunes and U.S. climate envoy John Kerry told the World Economic Forum that the war in Ukraine and the energy crisis was no excuse to reverse the energy transition and continue our dependence on fossil fuels.” REUTERS
Bed, Bath & Beyond CEO Is Out, Director Steps In As Interim Chief
“When Mark Tritton took the helm of Bed Bath & Beyond Inc. in 2019, he moved quickly to overhaul the home-goods chain by cleaning up crowded aisles, scaling back coupons and doing away with popular national brands in favor of new, private-label goods. That strategy was repudiated on Wednesday, after the company reported another quarter of plunging sales that pushed its stock down further. The board replaced Mr. Tritton with Sue Gove, an independent director who is stepping in as interim chief executive officer while it searches for his successor, the company said. The news came as Bed Bath & Beyond reported that sales for the three months to May 28 plunged by a quarter compared with the same period last year, while its net loss widened to $358 million from $51 million.” WALL STREET JOURNAL
Amid Protests Petrobras Board Approves New CEO
“The board of directors of Petrobras approved Caio Paes de Andrade as the company’s new chief executive officer, the fourth person at the helm of Latin America’s largest oil producer this year amid rising pressure for it to lower fuel prices… Workers protested at the company headquarters on Monday morning, saying Paes de Andrade has no experience in the energy sector and is not qualified to preside over the Brazilian oil giant… Paes de Andrade was approved by a “majority” of the board, the company said in a filing Monday -- local website G1 said earlier there were seven votes for and three against.” YAHOO
Disney Board Endorses Embattled CEO
“Embattled Walt Disney Company chief Bob Chapek got a critical endorsement after the entertainment giant’s board of directors voted unanimously on Tuesday to extend his contract for an additional three years. The move comes as Chapek’s future has been hotly debated around Hollywood and in media circles. After taking the reins from his charismatic predecessor Bob Iger, Chapek got plaudits for his no-nonsense approach to growing Disney’s streaming service. And he and the company’s stock was initially rewarded when Disney+ blew past subscriber projections after launching in 2019. That helped off-set the lost revenues that Disney had to endure when COVID forced the company to shutter its parks and cruise businesses temporarily.” VARIETY
New Pinterest CEO: A Google E-Commerce Veteran
“Pinterest Inc. co-founder and Chief Executive Officer Ben Silbermann is handing the reins to Google and PayPal Inc. veteran Bill Ready in a sign the social-media company will focus more on e-commerce. Silbermann, 39, will move to a newly created role as executive chairman and will retain his board seat, the San Francisco-based search-and-discovery platform said Tuesday in a statement. Ready will also join the company’s board.” BLOOMBERG
CEO of Wise Faces Tax Default Investigation
“The CEO of $4.8 billion fintech firm Wise is being investigated by U.K. regulators after tax authorities found he failed to pay a tax bill worth over £720,000. Kristo Kaarmann, who co-founded Wise in 2011, was recently fined £365,651 by…the U.K. government department responsible for collecting taxes for defaulting on the tax bill in 2018. At the time, a company spokesperson said Kaarmann had submitted his personal tax returns for the 2017/18 tax year late but has since paid what he owed along with ‘substantial’ late filing penalties.” CNBC
Court Accepts New Theory of Fiduciary Liability for Directors
“The Delaware Court of Chancery accepted, at the pleading stage, the plaintiff’s ‘novel’ theory that a board’s failure to act to address a problem it learns of through a litigation demand letter may constitute a breach of the directors’ fiduciary duties… The court emphasized that directors’ noncompliance with a clear restriction in a plan cannot be excused through reliance on the plan provisions granting directors sole discretion in interpreting and administering the plan… Directors’ violation of a ‘plain and unambiguous’ restriction in an equity-based compensation plan can give rise to both contractual and fiduciary claims.” HARVARD
From the Boardspan Library
Board Members: Are You Thinking Like an Activist Investor?
“The growing drumbeat of investor activism isn’t just a trend; it’s a fundamental change in relationship between shareholders and companies… Activists often believe that companies with large cash holdings should put it to work or return it to shareholders. They want to avoid the types of major losses investors incurred in the last recession. And they want to know how directors and management plan to steer companies in an increasingly regulated, global, and uncertain economy… Directors and management can create a plan based on an objective understanding of strategic alternatives, the company’s value drivers, and the value of its component parts under various scenarios.” DELOITTE via BOARDSPAN
