FRIDAY WRAP: CEOs with big curly hair look like criminals, an Uber killer has arrived with actual employees, and rich people continue to lie about stuff

Story of the Week (DR):

1. The trial of Sam Bankman-Fried, the founder of collapsed crypto exchange FTX, kicked off on Tuesday. AB JS

1. Bankman-Fried faces more than half a dozen criminal charges related to his company’s swift demise last year. Prosecutors are calling it one of the biggest financial-fraud cases in U.S. history. 

2. Prosecutors allege that Bankman-Fried stole billions of dollars from FTX customers, using the funds to enrich himself, fund venture investments and make campaign contributions to Republicans and Democrats. 

3. Prosecutors say that FTX customer money moved to a crypto-trading firm called Alameda Research, which Bankman-Fried founded. They say he did this in two ways: by having users deposit funds in bank accounts controlled by Alameda and through code written on FTX that allowed Alameda to borrow tens of billions of dollars. 

4. Sam Bankman-Fried: The 31-year-old founder of FTX and related companies. With a mop top of unruly curls and a penchant for shorts and T-shirts

5. Caroline Ellison: The CEO of Alameda Research, a crypto-trading firm founded by Bankman-Fried.

1. Sam Bankman-Fried's lawyer tried to blame Caroline Ellison for FTX's collapse during opening statements

2. 75,000 Kaiser Permanente workers have gone on strike. It's the largest healthcare strike in US history.

1. In a Reuters-Ipsos poll of Americans, some 58% of respondents said they supported the United Auto Workers union's strike at the Big Three Detroit car manufacturers.

1. That support was surprisingly bipartisan. While 72% of self-identified Democrats said they supported the strike at specific Ford, General Motors, and Stellantis factories, 48% of Republicans reported being in favor of it. That exceeded the 47% of GOP members reporting opposition.

3. The Disruptive Power of Weight Loss Drugs Is Being Felt Beyond Pharma

1. Retailers, the makers of foods marketed for weight loss, and other types of companies could see knock-on effects from the rise of diabetes and weight loss drugs like Ozempic.

2. Walmart U.S. CEO John Furner said in an interview with Bloomberg on Wednesday that the company has seen “a slight change” in food purchasing habits of people taking Ozempic and other weight loss drugs compared to people who aren’t—as impacts of the popular medication seep into the corporate world.

1. The company is seeing “a slight pullback in overall basket” when looking at the consumer data, though, for people who take Ozempic, Wegovy or other popular weight-loss drugs, Furner told Bloomberg.

2. Furner said the pullback has been “just less units, slightly less calories,” Bloomberg reported.

4. Horrible executive behavior (continued)

1. Abercrombie & Fitch says it’s ‘appalled’ by allegations against former CEO Mike Jeffries, begins investigation

1. Abercrombie & Fitch says it has launched its own investigation into allegations originally published by the BBC that the company’s former CEO, Mike Jeffries, exploited men for sex.

2. Eight men told the BBC that Jeffries and his partner hosted events in various locations in several countries in which some of them [they] were allegedly exploited for sex. At least some of the parties are alleged to have occurred while Jeffries was the CEO of Abercrombie & Fitch.

3. Abercrombie & Fitch abruptly announced Jeffries’ retirement in 2014 from his position as CEO of the teen apparel chain, a role he had held since 1992.

4. The company suffered multiple consecutive quarters of sales declines at its stores open at least a year by the time of his departure, and Jeffries had become a lightning rod for controversy, especially after he said in a 2006 interview with Salon that the brand’s clothes were more for “cool” and “good-looking” people. Jeffries eventually apologized years later for his interview comments.

1. Jeffries also drew criticism from consumers and youth advocacy groups who blasted the brand’s marketing tactics under his reign of featuring scantily clad teen models in its advertising, and often having shirtless male employees greeting customers to its stores.

2. In 2002, the retailer pulled controversial T-shirts after complaints they were racially insensitive. One shirt showed Chinese laundry workers with conical hats and the phrase, “Wong Brothers Laundry Service: Two Wongs Can Make It White.”

3. In 2003, the company – under pressure from some consumer groups – said it would stop issuing racy catalogs and halt the publication of its holiday book, which featured nude young adult models in sexually suggestive poses.

4. Under his watch, Abercrombie & Fitch also agreed in 2004 to pay $40 million to settle a class-action lawsuit that alleged the company engaged in workplace discrimination by promoting White workers ahead of Black, Hispanic and Asian employees, according to The New York Times.

2. Former Ubisoft Execs Reportedly Arrested After Year-Long Sexual Harassment Investigation

1. Five former Ubisoft executives were reportedly arrested following a year-long sexual assault and harassment investigation within the company.

2. As reported by French publication Libération, translated by GI.biz, former chief creative officer Serge Hascoët and former VP of editorial and creative services Tommy François — both of whom left Ubisoft in summer 2020 following a wave of sexual misconduct allegations — were among those placed in police custody.

3.  The plaintiff's lawyer Maude Beckers told Libération the investigation "reveals systemic sexual violence".

4. Allegations emerged against multiple Ubisoft departments and studios in 2020. Assassin's Creed Valhalla director Ashraf Ismail was fired from the company, while Hascoët, François, and global head of HR Cécile Cornet all stepped down.

5. Ubisoft committed to making major changes following the allegations. "I am determined to make profound changes in order to improve and strengthen our corporate culture," Ubisoft co-founder and CEO Yves Guillemot said at the time.

1. A report which emerged a year later, however, had Ubisoft employees claiming "nothing has changed". Guillemot said Ubisoft had strengthened its anti-harassment and non-discrimination policies and created new HR processes, among other changes, but committed again to making further improvements.

6. FFA: As of the company’s 2023 AGM, this farce of a board is still controlled by the 5 Guillemot brothers (80%) with women representing 43% of actual bodies but only 16% of actual influence. In fact, the only two directors to resign since the 2020 scandal broke were women!

1. After the 2023 AGM, there will be six independent women on the board and five brothers.

3. Julia Ormond Claims Disney And CAA Enabled Harvey Weinstein’s Sexual Abuse In New Lawsuit Harvey Weinstein

1. English actress Julia Ormond sued convicted sex offender Harvey Weinstein of sexual battery Wednesday and accused the Creative Artists Agency, Disney and Miramax of enabling Weinstein’s sexual misconduct—the subject of numerous allegations and multiple convictions that will likely see the disgraced producer serve the rest of his life in prison.

2. “The men at CAA who represented Ormond knew about Weinstein. So too did Weinstein’s employers at Miramax and Disney,” the lawsuit said. “Brazenly, none of these prominent companies warned Ormond that Weinstein had a history of assaulting women because he was too important, too powerful, and made them too much money.”

Goodliest of the Week (AB):

1. MAD MONEY Molson Coors CEO touts nonalcoholic beverages: ‘We’re moving beyond beer’

1. “CEO of Molson Coors Gavin Hattersley told CNBC’s Jim Cramer on Wednesday the company is developing nonalcoholic offerings as consumers, especially younger people, trend toward health and wellness.”

2. Gen-Z is not a big fan of beer

2. A Start-Up’s Alternative to Uber: Employing Its Own Drivers

1. “Alto, a Dallas-based transportation start-up founded in 2018 promotes itself as a safer, higher-quality version of Uber or Lyft, with drivers who are thoroughly vetted, employed by the company and paid hourly.”

2. Alto’s 2023 revenue grew by 30% over the previous year, they operate in 5 major cities with 2k drivers. Dwarfs in comparison to Uber (5M drivers, 10k cities), but they are only trying to compete with high-end ride hailing business aka Premium Uber

3. The gig economy has taken a lot of heat so it will be interesting to see how this plays out

3. The Fortune 500 adds a second Black woman CEO in SAIC’s Toni Townes-Whitley DR JS

1.  This week, Toni Townes-Whitley became the CEO of Science Applications International Corp., a Virginia-based Fortune 500 technology company that supports government agencies, intelligence services, and the Department of Defense.

2. "This is an opportunity for me not only as a female but as an African American female," she added. "We’ve never had an African American female as a CEO in national security. “

Exhausting-est of the Week (JS):

1. Who lies on resumes more often? High earners and workers with advanced degrees, it turns out

1. In a study of 1,900 workers: As many as 70% of workers said they have lied on their resumes, with 37% admitting that they lie frequently

2. 75% lied on their cover letters and 80% lied during the job interview

3. The most surprising revelation? Those with master’s or doctorate degrees reported higher incidences of lying. At least 85% of them reported that they have lied on their resumes, and 90% were untruthful on their cover letters. 

4. Apparently, it goes both ways: Four in 10 hiring managers admitted to lying to job candidates during the hiring process to get them to take the job. The majority lie about growth and career development opportunities

2. The ultra-rich are not just the worst polluters–their donations to climate action are also another way of hoarding money and gaming the system

1. The ClimateWorks Foundation estimates charitable giving to fight climate change came in at around $7.5 billion last year, which is only 0.5% of the money sitting in private foundations and donor-advised funds–and amounts to about 0.04% of the assets of the ultra-rich.

2. According to the most recent data, the world’s top 125 billionaires have “an average of 14% of their investments in polluting industries, such as fossil fuels and materials like cement….Only one billionaire in the sample had investments in a renewable energy company.” 

3. When combining the impact from both their investments and lifestyles, carbon emissions exceed 3 million tons per billionaire, about a million times greater than the average person!

4. The same report finds that through campaign contributions and lobbying, the wealthiest among us have an oversized impact on election outcomes and more political power than anyone else to protect their investments and shape climate policies in their favor. 

5. The only way to limit the power of the excessively wealthy is to stop the hoarding of excessive wealth. Extremely rich Americans hoard their wealth through tax loopholes and preferential policies enforced by their armies of lawyers, accountants, wealth advisers, and politicians

3. Women Could Fill Truck Driver Jobs. Companies Won’t Let Them. AB DR

1. Three women filed a discrimination complaint against a trucking company over its same-sex training policy, which they say prevented them from being hired.

2. Trucking companies often refuse to hire women if the businesses do not have women available to train them. And because fewer than 5 percent of truck drivers in the United States are women, there are few female trainers to go around.

3. Companies that insist on using women to train female applicants generally do so because they want to avoid claims of sexual harassment. Trainers typically spend weeks alone with trainees on the road, where the two often have to sleep in the same cab.

4. Critics of same-sex training acknowledge that sexual harassment is a problem, but they say trucking companies should address it with better vetting and anti-harassment programs. They could reduce the risk by paying for trainees to sleep in a hotel room

5. “It’s frustrating to see that we have not evolved at all,” said Desiree Wood, a trucker who is the president and founder of Real Women in Trucking, a nonprofit. Ms. Wood’s group is joining the three women in their E.E.O.C. complaint against Stevens

Who Won the Week?

1. DR: “Normal hair”

2. AB: NFL (again.)

3. JS: Karen Lynch, CEO of CVS who was named the #1 Most Powerful Woman by Fortune for the third year in a row. She wins this week for landing that accolade despite bleak performance, according to Free Float Analytics. Her Director Batting Average comes in at .247.

Predictions

1. DR: Get it while you can: a major health issue disrupts weight-loss drug market

1. From 1:24pm: Weight-loss drugs like Ozempic and Wegovy come with potentially serious side effects, study finds

2. AB: Walgreens will go with a familiar face to replace CEO