From August 2023, companies trading on the exchange Must have at least two diverse board members or explain why they are not meeting this diversity objective.
“Disclosing this information to investors empowers shareholders to support companies that embody their ideals and draw investment from companies that don’t,” said Representative Carolyn Maloney, Democrat of New York, who chairs the House Committee on Oversight and Reform. conduct. “Besides making ethical and common sense, increased diversity makes economic sense. Studies have repeatedly found that companies with more diverse leadership are better positioned to succeed.”
The 2020 killing of George Floyd by Minneapolis police sparked Black Lives Matter protests across the country, increasing demands for corporate action on diversity and inclusion, said Facil Michael, head of thought leadership at ISS Governance Solutions.
Statistics show that those demands are taken seriously. But numbers don’t tell everything.
Although 19% of the total US population identifies as Hispanic or Latino, directors from that group account for only 5% of S&P 500 board seats, for example.
In addition, front-line hourly employees are about 20% less likely than corporate employees to believe that diversity and inclusion policies make a difference, according to McKinsey.
But much of what they’re doing “seems like a self-serving ploy to generate positive PR,” they wrote in a joint statement. The current state of corporations’ diversity efforts is “disappointing but understandable … investors pressure them about what amounts to a box-ticking, virtue-signaling exercise — and it shows.”
“What encouraged that behavior?” Just ask Taylor and Harvard. “Is there a connection between the lack of diversity in senior leadership and these lawsuits? More broadly, why should executives be awarded bonuses for meeting internal goals that should be central to any company’s values and mission?”
Bad news on Wall Street
Enjoy the good times while you can because they don’t last forever.
Last year was a lucrative one for those wearing black wool who work in midtown Manhattan but call it Wall Street. The streets are glittering in the golden edition of 2021 … mergers, acquisitions and IPOs.
The economy is back, baby. Due to the hard work of Pfizer, Moderna and Johnson & Johnson, Covid finally met its match. Those Wall Street warriors worked hard and their wages reflected that. Average bonuses reached a record high of $257,500, up 20% from the previous year. That’s on top of very generous base salaries.
Then hit 2022.
Covid rates are still at record highs and shutdowns are rolling supply chains. Inflation, interest rates and lack of IPOs have hit the financial world hard. M&A activity has fallen by 25% and IPOs have halved from last year. Investment banking revenue fell 61% at JPMorgan Chase and 55% at Morgan Stanley last quarter.
Inflation, the hot new word
We all know that inflation has reached historic highs. This earnings season has shown us that even corporations have noticed.
According to new data from Cision, there has been a 26% increase in mentions of “inflation” from publicly traded companies’ earnings reports so far this quarter.
“Inflation” was mentioned 19,518 times and 827 times during the same period in 2021. Interestingly enough, “corporate greed” was the most used phrase among Twitter users talking about earnings reports, with 9,577 mentions. compared to just 8 in 2021.
Corporations increased references to “interest rates” and “recession” in this quarter’s earnings reports by 9% and 4%, respectively.
But Russia’s invasion of Ukraine, seen as a major headwind last quarter, saw a 77% drop in mentions as a negative factor this quarter while talk of the pandemic fell by 17%.
Tyson Foods and Palantir Technologies will report earnings before US markets open.
Today too: NY Fed 3-year inflation expectations are out.
Coming up tomorrow: Sysco, Coinbase and Hyatt report earnings.