Business Pants LIVE: Cornavirus update, plus Boeing STILL CRONY?
What. It's. Tuesday. Hey Oh Tuesday, February 25th, 2020, this. Business, pants. I'm. Dick neurons that smack Viscardi, you're live. You. Just really perked up for that by, the way I really, like how perky, you just got it was. Inspiring. We're, doing a show we're doing a professional the, professional enterprise. I'm. Gonna start the time do we really have to do we really have to call a professional that holds. Us to a standard we might not be able to live up to yeah. Professional, also insinuates. That there's some kind of transaction. Like a financial transaction, yeah there's none of those so. We're amateur like. We're. Professional. Amateurs, we're. A bloated, softball, league. What's. On the agenda. I. Would, like to know do, I is there an agenda car okay we're gonna talk unfortunately, once again we got to go coronavirus. Because of a stock. Market plunge, that happened yesterday and is happening, as, we speak and. Then we're gonna go back into our big fuzzy. Bag of cronyism. Because. Boeing. Has some news that nobody else seems to care about but we care, about here businessman honestly it is the kind of news that. Just. Like it gets like a byline, and in. Like you know in. Like a new PR Newswire journal. And no, one cares about let's, do craw let's do coronavirus. So that we cannot do coronavirus, again today, all right I'm, gonna I have a new sound effect for you already. Coronavirus, here we go. So. What I don't am. I am sharing my a boxer okay I'm a boxer okay, the. Stock market fell over, a thousand. Points yesterday that represents more than three percent. We. Can talk about a little later what the hell that means, today it's already down what. Is it out I'm gonna refresh my webpage it, is already down. Almost. Five hundred points so that's a almost another 2% with. Travel stocks and those with heavy reliance on supply chains in China falling. More, than the broader market, that's a big duh. CNBC. Also. Took the opportunity to conflate. The nosedive with good old Burnie, speculating. That healthcare stocks fell sharply following. Bernie's big win in Nevada over the weekend although. I look. Pretty closely. CNBC. Did I notice. That they did not make the suggestion that the healthcare industry itself, might. Be responsible for causing fears, in the electorate, that catching. The wrong virus. Could suddenly bankrupt. A law-abiding family, of five that's. A whole nother story here. So Matt let me tell let me ask you this what took, Wall Street so long to dive is it, simply a case of who. Cares it's just a bunch of Asians, but oh no. Oh. No, our, supply, chains, this might affect our beautiful bottom lines and, this is the only thing we actually care about because our beautiful bonuses are based on short term nonsense, and market manipulation or. Maybe it's just an opportunity to dump some bad stock, buys like a good old fashioned Friday news dump so. Matt is it all the above none of the above something, else what do you think well I do like so it's, worth saying and I do like, we. Should stop using the word supply chain because supply chain it is like Wall Street just woke up and realized they were like humans, in the supply chain that were yes, and let, me up there because they said we talked about this yesterday we, hear the word supply chain I say the word supply chain and my friend yes I still actually have friends, left oh you don't and they they, stare at me. Even. More uncomfortable than they usually stare at me which, is pretty electable when. I explain what the hell is supply chain is that it actually involves human beings then they start to hormone their look oh right there actually there are people involved with supply chains I mean it is like the like, like. All the earnings announcements. And all the announcements since, about coronavirus, really, kind of, circulate. Around the idea that there's, quote, supply, chain disruption, Goldman, actually called. This. A near-term, correction, and said. In. The same statement, about coronavirus, that it would cause a quote, nonlinear. Effects. These, are all like Wall. Street code words for. Human. Beings, who make your crap are, dramatically. Affected. By a pandemic, virus, right, like that yeah, code. And we're we're, big here I'm trying to rename bullshit. Cuz this is like a marketing, genius name and I think supply chain should be on, top of our list now because we got a we.
Got To have a new way of referring. To that because it does when you hear a supply, chain I, mean do you don't think of human beings you don't you think of you think of processes, which is a nice way, of kind of covering up the fact that it's usually low-cost labor or building, your stuff I mean. It's not uniformly. That but it is I it. Is a lot that, but. I I think. Because. You pulled out two things one, is the supply chain system, conversation. Right like there is this sort of like so, we, can just rename. It you know humans. Who make stuff so. That so the, Dow and the market effectively woke up and said oh there are humans who make stuff that's terrifying. Yeah. And and, then second was is the. The the. I would. You call it latent racism I mean there is it's, called focus. Yeah. It's either xenophobia, it's. A racism or yeah it's just a good, old-fashioned East versus West battle, because it was very, telling. That like, the, news cycle, started. To spin. Coronavirus. In Italy as getting. Out of control here it's here it's in Europe and I read, multiple, stories that was like can Europe contain the coronavirus, and it's, not it doesn't feel coincidental. That as soon as it's like a nine-hour, flight away instead, of a 20-hour, flight away. People are all sort of like freaking. Out that this is a real thing and not just some China thing see, this is where all the your liberal do-gooders, and all you ESG, together screwed us because Europe has an amazing, amazingly. Efficient, and wonderful, inter. Rail system, its its trains, are glorious, and that means it's just gonna spread coronavirus just like that it's, basically a giant a giant venous. System for. But. Italy is not like a supply, Chasa, plier to though to the, world for a like, it's not a huge manufacturer. Of the goods in the way that China is it is a manufacturer, right like but but but. It's not like the hidden manufacturer. And ice. I heard on squawk box just, yesterday they were talking about like if this goes to Italy in Germany what does that mean and those, are major manufacturers. In Europe right. And it's like well it's. Already. You. We didn't care when we called it supply chain but now we're calling it like. Manufacturers. In Europe and it's suddenly total, white yeah, well Europe is code for white people I mean and I think that that's an element. You. Also mentioned, Bernie I. Always. Gotta mention Bernie but isn't this isn't, this like a like. Do, you do you think I, honestly. Do you think that the market is somewhere in the back of their head saying this, could fuel the rise of Bernie's medicare-for-all kind, of conversation, and we, know the market is desperately. Desperately afraid, of, the, socialist, rhetoric that is Bernie not that they look they should they were just really afraid of Trump's, socialist, rhetoric too because he's populist, in the in. The extreme on the other side right I don't necessarily want to go too deep into it but and I know they're not gonna cover this tonight and it debates because so the Democratic, presidential candidates, for all of you who don't live in United States, I'm looking at you our Finnish fans and our Korean fans number 40 in Finland right now, they're. Gonna be debating, tonight, but. I think I think, it's an important, crossover, I mean that. We have underinsured.
And Uninsured people. In this country. Who. Are who. Are too poor. To go and pay the bill for an ER visit or for, the co-pays, and we'll, get uh we'll get sick and just be like you know what I'm just gonna ride, it out stay home that. Is clearly. A problem in a time of pandemic, it has to be well, let's say that these the three things has to be well let's say the three things you pointed out are basically. Wake-up. Calls and like. Describing, part. Of why the market, might be reacting. It's. Also impossible, to, disassociate, it with there. Has been such a ridiculous. Bull. Run like investors. Have been so happy I've, three, months, ago they were literally out saying the consumer, is strong, in America, and the world everything. Is amazing there's, no reason why you couldn't think this would go on forever now, it's, like. The market was sort of also, if. You think of it as a collection, of people, who are waiting for the other shoe to drop this. Feels other shoe, ish and I'm sure they're all just kind of like get get, the hell out well while, we've made some money and that's, where it like disassociates. From reality like, market, has been so disassociated. From what. People are that. Now they're all like oh crap, people sell. Sell. Sell it. Feels. Good speaking. Of people let's move on get. Bail me out. Bowing. Not. The first time I've said that word so, great we wouldn't get to a bowing story and, this will be the only place that's gonna cover this in depth I promise you that Boeing, announced that director is Edward, Liddy one, of my favorites and, Mike. Zephyr. Off ski yeah, Mike. Will retire at the plane makers annual shareholder, meeting and, not stand, for re-election to, replace the retiring directors Boeing has nominated, Qualcomm. CEO, Steve Mullen cop and former. United Technologies CP, CFO. Akhil, jory. Before. I hand this off to Matt to see if any of this smells like a big moldy, bag of cronyism I asked myself. Do. The professional or educational, backgrounds, of these new directors, reveal any specific. Expertise, --is which. Would suggest an acumen suitable, to handle the monumental crisis, at Boeing and I, think the easy, answer, is no. Jory. Is a numbers, guy big, whoop. Mall. Cop sells semiconductors. So I could I don't know why I care about that so, I call this a missed opportunity. So, who okay so Matt who are these guys and, could. They possibly, be represent, Boeing's new, culture, or is. This just more of the same old, greatest hits from CEO, Dennis melon Berg's mixtape, what do you think. Does. He have a mix tape can is that like, down. The street. So. I want. To come back to the, to the question and just from because. I. Think. Like. We. We talk a lot of about bone we've talked a lot about Boeing here and there's sort of like should. Anyone, care like, is this the point in the live stream or the podcast, where people are like oh my god Boeing again like but, let's but let's remind people why, we. Talk about it because effectively. There. There's an underlying question. Of, all, of these boards. Which is we, have a working theory that no one gets hired unless they're known entities, and there's, not like a Rooney Rule for boards if, you know what the Rooney rule is it's basically in the NFL, when.
They Go to hire a coach they have to interview at least one. Person, of color because. It was that ridiculous. That. They wouldn't even, interview. People of color there. Is no Rooney Rule for boards there's no minimum, qualification. For like you have to find somebody who's not in your sphere so, the. Question, is how likely is Boeing's board and I think you basically, summed it up how likely is Boeing's existing, board how likely is any board, to. Nominate, new, people who would challenge the existing culture or the power dynamics, there, right like how, likely is that especially. For the for these these, the 500. Biggest companies, were talking about S&P 500, oh yeah the Boeing is like one of the most, important, companies in US, GDP. Like forget SP. 500 right. So, we'll. Go one by one and, and. Just as a quick reminder the. Reason why IDI Liddy was one of my favorite is he sat on the Boeing board for 10 years he's also been on Abbott, and 3m s board for a long time, Saveur offski is. You. Know he's, been on the Boeing board forever these are people who are on the nominating, committee that you know of Boeing I just, love, that they're old white kind, of dudes who keep getting jobs but. Let's go one by one with these new guys okay. Number. One. A. Keel, Jory, I'm. Gonna go through the paper that, I can find on them kill, Jory X United, Technologies he. Was their CFO he, was, their adviser to the CEO, whatever that means which sounds like an amazing gig is there a reason why we don't have that gig I think. We do it's our cats I really. I need to advise more CEOs so, um, so, props to Boeing, for picking somebody who, is actually a person of color I mean, we got two dudes so we, didn't diversify, it too outgoing, white, dudes but, no, we. Got to give props where props who do one, thing it's something your thing. And. This is actually worth. Saying that this is where sort of ESG, often, stops because. It's like you. Know we get a percentage of women on boards we've. Started to edge into a percentage, of people of color, on boards. And then, it's like okay well there's a high percentage of women on boards congratulations. We're done we're SG, we're, we're, we're, very diverse I'm. Not gonna stop there I'm actually gonna figure, out what these dudes are about sure. Joey worked directly he, were a United. Technologies UTC. For, 30 years and he worked with their CEO Greg Hayes for a lot of it. Greg. Hayes. Sits. On the Business Roundtable board. Horse. Of course the Business Roundtable involved. Here the Business Roundtable is, central to everything he. Sits on the Business Roundtable board, with Boeing. Board members Lynne good of Duke. Energy, and. Business, Roundtable is the largest, client of the do Burstein group Kendu Burstein was the architect.
Of The Boeing Board for, the last two, decades, no. Exaggeration. Two full, decades of can-do Burstein creating. What we have now the, mess we have now. So. All of these people are already directly. In, contact, with Jori Jori. Worked. With, the UTC board as CFO, no doubt so, he probably knows their board members including, Ellen Kullman who. Sits, on Amgen's, board with, CEO Robert Bradway, who is also a current Boeing board member so lest, you think I cannot. Connect, almost. Instantaneously. The. Person, of color that they chose to. The, Boeing sphere, of influence. And or. Relationships. I can. Write. That's. Dude, number was just the first guy okay. So any thoughts about the first guy, do. We care uh I, mean it feels like we, okay, he's a yeah, I don't know if I really care he - two things a sick guy he's another number he's a numbers guy I think, one of the retiring directors, a numbers guy so I guess they need a numbers guy and the other thing I can all I. Can really think of is that the. Business roundtable must, have. A. Database. On their intranet, and that. That, these companies have access to you right it's like oh we need a director who's, on the list okay let's just go with this guy so I'm actively. Requesting. A login to the Business Roundtable. Database. I feel, like it's forthcoming yeah. So. Let's go - dude number two and I wanted to stress here this took me literally two, hours this morning to figure this out yeah right this is not like me, doing four, years of research so, why, this isn't, in like CNBC. And they're not saying Boeing. Effectively, hires two people who are directly. Connected to Boeing, for, board member I don't know why it's not there but yeah, because CNBC, is not in the business of. Disruption. I said well maybe they didn't have a business roundtable, login so they. Know. That the connection existed, so dude, number two Steve McConnell, info the CEO, of Qualcomm, now. Molly likes. Boring and, Qualcomm don't actually have as obvious connection, Marlin cop isn't. Directly, related to Boeing in quite the same way it's not like you. Know, knows. Everyone, on Business Roundtable board gets hired which, I don't know, for a fact is true of Jory but I can infer from at. Least the paper until. You actually welcome, is a business, roundtable member though yes well. There's that I mean. Yeah okay but, he's not on the board of the Business Roundtable, oh come, on okay, same. Database, let's do the indirect, relationships, because if you look at Qualcomm's, board so, Marlin, cops sips on Qualcomm's board he's our CEO you've, got a dude like Neal Smith who's, also a board member vice. Chair. Of comcast. Comcast. Is, Kendu Burstein has given ken doober Singh's lobbying group more than five million, dollars since 1999.
One, Of the single biggest clients, they have including. 1.6. Million in just the last five, years. If. I need to remind you forty seconds ago I said Ken doober Steen's name cuz he's the architect of the Boeing board yeah. Also. On Qualcomm's board harish, man wani i don't. Know Harish. Could. Be a really super nice guy Harish. Is also, on the Blackstone Board worth. Noting, that Blackstone. Is. Where, current, Boeing, CEO Dave Calhoun, worked up until last year, and. Outgoing. Board member Mike Safarov, ski, and. Who's also on the nominating committee works. Now. As a special. Advisor everybody's. A fucking special, advisor yeah. That's, another. Code for staying on the payroll, can I just this. Is this I I made, a plea, to join a board last year I made the wrong plea I want, to be a special, advisor. Okay. So notification. Upcoming, segment, becoming. A special adviser to somebody, on a company, getting on the payroll. So. They're already there are indirect connections and I don't even have to go deep to talk about like you know the Business. Roundtable on, the board of the Business Roundtable are both Ginni, Rometty IBM. CEO and Safra Catz Oracle, CEO these, are two like tech CEOs, they. Are two of the four, Technology, CEO Council board members whose, chair, is Steve, Malin cop incoming. Boeing board member from, Qualcomm so. Right I mean it, seriously it took me yeah, these, people are like less than two, phone calls away, from, Boeing's board so back to the original question okay. I'm. Gonna I'm, gonna ring a bell on myself back, to the original question. The. Thing to think about here and. I'm. Gonna start our outro, music I want you I, want you to answer while we outro but, you want me to answer quickly, I want you know, we've got plenty, of outro music so take your time ok. This. Took me two hours of research, to. Find out. How. Wide the net was that they had to go looking for these people like it's your buddy's friend, like, that's as wide as they had to go are, these. People, likely, too deeply, challenged, with, what, sounds like a highly. Dysfunctional culture. At one of the us's most. Important. Contributors. To GDP, in Boeing. People. Should be there and that hurdles. People through the space now, let's say maybe they're. Fucking, geniuses. Let's, say they're amazing, and let's say they don't they didn't know any of the people beforehand. That's totally. Possible I am strictly, looking at paper but from an optic, standpoint. Is this as an investor, who you want, chosen. On. The. Board that needs to make fairly, monumental. Decisions, about, this company, do. You know how I know it's, not it's not enough because I I went to look at the press release put out by Boeing itself, and, so it had the opportunity, to sell these two as a, way to create, new. Culture to get flowing out of its crisis, and. Nothing. Crickets. I mean. It no really they they had the opportunity, from. Their communications. Team to, tell all of us stakeholders. Shareholders, whoever. Idiots. Like us that. These. Two were. Our, arsonists. We're specially, appointed to, help and they nothing, nothing let me let me read to you what Larry Kellner who's Boeing's current chair said our, announcement. Today reflects, our, quote. Rigorous. Succession. Planning, which. Ensures, we maintain the. Right balance of skills and experience to effectively, govern the company, and then, said a set of the two of them they are proven, leaders at complex, global enterprises, and together we'll bring significant, additional safety engineering, software and financial expertise to our board nowhere, does he mention that, we. Will these, two people will, actually challenge. The cultural. Problems, and parent, right. And that's, the key task of the new CEO right challenging. He, said he put, he made that his task explicitly. So. I think I think succession, planning that kölner kelenjar is referring to there is a post-it. Note on his computer, to monitor with the password, to, the Business Roundtable database. Is, the password, the word password, it's. One two three four. Do, you have more for us. No. I I will. Add just so people are aware of this that these. These, directors are nominated. Right there's, actually, an opportunity for, shareholders, at the next Annual, Meeting which probably. What are you going actually. Just vote no they could vote no imagine, a situation with shareholders, an election actually listen, to some research and voted, no. You're. Scared about Bernie you don't know what to do about it why, don't you exercise your voting control at Boeing, you just say no to these guys I love it is X ISS, and glass.
Lewis The proxy advisors you're pissed off that you you're in the middle of an SEC battle, where you're gonna get regulated, make, your advice say no to these guys because. It. Doesn't make sense as to. Govern, what is maybe, the most important, one of the most important companies, in this country they. Shouldn't come from the direct sphere of Kendu Burstein do. Burstein I like saying goober. All right love. It I'm Matt. McCarty, you are damien Rallis we are free flow media, it was. February. 25th, of 2020. This. Was the news if. You, like what you heard subscribe. Listen. To us all the time tell your friends about us, because we are amazing, in Finland. And. And. We, also, subscribe. To our our sister, show the market medium I have a interview, with Jeff, San and Feld that I did is amazing interesting, Yael. You, know professor he's a CEO he's. Like he's he's a he. Weighs in on like we're gonna do some stuff about CEO, Messiah, ISM but we'll, come back at you with that thanks. For joining us we'll, see you again tomorrow thanks Damien.
2020-03-07 11:41
