Across the Board
FDIC Investigating Internal Claims of Harassment and Discrimination
Women at the agency paint a picture of a toxic work environment
“The Federal Deposit Insurance Corp. has hired an independent firm to conduct a ‘top-to-bottom assessment’ of alleged harassment and discrimination at the banking regulator, its chairman told staff Monday, hours after The Wall Street Journal published an investigation that found a longtime toxic atmosphere prompted women to quit the agency…The Journal’s investigation, based on interviews with more than 100 current and former FDIC employees, found that the agency has been hesitant to impose harsh discipline on managers accused of misconduct, in several instances moving supervisors who were the subject of complaints to other offices rather than imposing harsher measures. Female employees described a sexualized, boys’ club environment that they say led them to leave the agency over the years, feeling they were consistently given fewer opportunities than their male counterparts.” THE WALL STREET JOURNAL
GE Announces Board for Future Independents GE Vernova and GE Aerospace
Directors for the two organizations will oversee innovations in energy and flight, respectively
“GE today announced the Boards of Directors for GE Vernova—the planned independent public company that will be created following its spin-off from GE—and GE Aerospace. GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr., said, ‘We’ve assembled two extraordinary boards to oversee GE Vernova and GE Aerospace, bringing the best of GE forward with compelling new thinking. Each team of talented directors has deep expertise in its respective domain, diversity of perspective, and a wealth of leadership experience. These boards are fit for purpose to help GE Vernova and GE Aerospace rise to their sharper, more focused missions as independent companies.’” GE PRESS RELEASE
Disney Activist Investors Double as ValueAct Amasses Stake
ValueAct is now the second largest investor in the company
“Disney shares climbed 3% Wednesday on speculation that yet another activist investor might accelerate shareholder friendly moves at the Burbank, California-based company. While ValueAct’s intentions aren’t known, it’s not working in concert with Peltz’s Trian Fund Management LP, according to people with knowledge of the matter. What’s more, the firms could end up at odds, depending on their aims, especially if both separately seek board representation…Disney Chief Executive Officer Bob Iger has at least a cordial relationship with ValueAct CEO Mason Morfit, who is married to actress Jordana Brewster. Known for her role in the Fast & Furious films, Brewster has owned a home near Iger in the tony Brentwood neighborhood of Los Angeles.” BLOOMBERG
‘Turnaround Story’ May Be Key to Disney Board’s Survival
As Peltz increases pressure, the board needs to craft a vision and build trust with investors
“From the looks of things, the Disney board may have a lot of convincing to do. Peltz unsuccessfully pressured the board to grant him a board seat in January, and the company stock price has fallen since then. The current board’s track record is sketchy. As CNBC reported, ‘Every board member, aside from Iger, has presided during a time where shareholder return has been negative.’..Now it is up to Disney’s board and management to outline a compelling turnaround story for investors before Peltz makes his case for removing several of Disney’s board members. To his credit, Iger started singing the praises of Disney’s potential turnaround this week.” CHIEF EXECUTIVE
Goodyear’s CEO to Step Down Amid Company Overhaul
Activist Firm Elliott Management behind the push to decrease costs by $1B
“Goodyear Tire & Rubber Co. said it will seek a new chief executive officer, cut costs and weigh options for several business lines as part of a sweeping overhaul under pressure from activist Elliott Investment Management…Goodyear on Wednesday also announced a 'transformation plan' designed to reduce annual costs by $1 billion by 2025, boost profitability and cut debt by $1.5 billion. The company said it could generate gross proceeds of more than $2 billion as it pursues strategic alternatives for its chemical unit, the Dunlop brand and the Off-the-Road equipment tire business.” BLOOMBERG
Rory McIlroy Resigns from PGA Tour Board
The esteemed pro has been outspoken about his opposition to the LIV-PGA Tour Merger
“Few golfers had been more strident critics of LIV and the players who joined it, and the PGA Tour had benefited from the credibility of a four-time major tournament winner’s serving, in effect, as its leading public champion….Although he soldiered on, he signaled this week that he had tired of the role. Asked in the United Arab Emirates whether he was enjoying his board tenure, Mr. McIlroy replied: “Not particularly, no. Not what I signed up for whenever I went on the board. But yeah, the game of professional golf has been in flux for the last two years.” THE NEW YORK TIMES
Should Meta Disclose Mark Zuckerberg’s Cage Fighting Risk?
Is his unconventional and risky hobby a liability to the company?
“Meta’s Mark Zuckerberg has become increasingly obsessed with formal mixed martial arts fighting, and is training for a competitive fight next year. But the chief executive officer faced a major setback: He tore his ACL in training and underwent surgery to repair it. The photo of his wife Priscilla wiping his brow set off a series of hilarious memes. But there is a serious consideration here about whether Meta Platforms Inc.’s co-founder, CEO and controlling shareholder has a duty to disclose his MMA activities to investors, particularly if formal contests are in his future. What if it’s worse next time? Zuckerberg posted about his surgery on Instagram, and there was no filing or company statement.” BLOOMBERG
US Corporate Boards Are More Diverse Than Ever, But the Pace of Growth is Slowing
The 2023 class of new directors is less diverse than in 2022
“Corporate boards have become significantly more diverse over the past five years, according to a new report from The Conference Board and ESGAUGE. The share of female directors in the S&P 500 increased from 23% in 2018 to 32% in 2023, while the reported share of racially/ethnically diverse directors grew from 20% in 2018 to 25% in 2023. As the report points out, however, the reported growth in both racial and gender diversity has slowed in the past year. The share of reported female directors increased by one percentage point, from 31% in 2022 to 32% in 2023. And the share of reported racially/ethnically diverse directors remained virtually unchanged, rising from 24% in 2022 to 25% in 2023.” THE CONFERENCE BOARD
