GOOD GAME: ESG is now “resilience”, Kroger’s CEO leaves, Tesla owners hate Musk, State Street loves nominating committees

Live from a pile of resilience and monochromatic rainbows, it’s an all-new Terrific Tuesday edition of Business Pants. Joined by Analyst-Hole Matt Moscardi! On today's fat-finger error called March 4th 2025: THE GOOD GAME!? Our show today is being sponsored by Free Float Analytics, the only platform measuring board power, connections, and performance for FREE.

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1. Pfizer CEO says he's prepared to shift manufacturing to the U.S. amid tariff threats

2. Toyota touts race tickets, e-money in first shareholder perks

1. Investors who have held at least 1,000 shares for five years or more will be rewarded with credits worth ¥30,000 ($200) for Toyota Wallet, a smartphone payment app

2. Eligible shareholders may enter a draw for races at Fuji Speedway later this year.

3. Don’t Call It ESG, Call It Resilience

1. "A new taxonomy around environmental, social and governance investing comes as political pressure mounts on investors"

4. Kroger CEO Rodney McMullen resigns after ethics investigation—Board appoints Ronald Sargent as interim lead

1. Rodney McMullen (29%) and Ronald Sargent (21%)

2. PROBLEM SOLVED - Sargent used to work at Kroger, has equally as bad performance metrics, is on 3 boards, and has been on this board as “lead” for 18 years… that’s probably the guy you want

5. This bank’s board is 78% female—but don’t credit DEI

1. Piermont Bank

6. Poshmark’s CEO lets his Gen Z workers cho[o]se what he wears—he says it helps him ‘immerse’ into the next generation’s thinking

1. Manish Chandra

2. Poshmark is owned by Korean internet company Naver Corporation. One of the rare companies controlled (43% influence) by a woman who is not a founder or family member: CEO Soo-yeon Choi

7. Reddit cofounder Alexis Ohanian says AI should moderate social media

8. From boycotts to ‘good-buys,’ consumers are showing support for DEI

1. “Still, some activism breaks through. In 2023, Target’s revenue tumbled after its Pride Month collection became embroiled in the culture wars. The same year, Bud Light was boycotted after it partnered with transgender actress and influencer Dylan Mulvaney in a social media ad, hurting sales.”

9. Tesla Owners Now Disgusted By Elon Musk

1. Tesla's worst month since 2022 coincided with Elon Musk's first full month in White House

2. Demonstrators flock to Tesla showrooms to protest against Musk

3. Tesla for Sale: Buyer’s Remorse Sinks In for Elon Musk’s E.V.-Owning Critics

4. ‘I’m selling the Nazi mobile’: Tesla owners offload cars after Musk’s fascist-style salutes

5. Tesla Investors Concerned Elon Musk Is Causing Huge Sales Drop

10. Citigroup mistakenly credited a customer account with $81 trillion

11. There are enough microplastics in your brain to make an entire spoon

12. Number of ESG-labeled funds drops 20% in wake of ESMA guidelines, MSCI finds

13. HP CEO pay for 2024 = 261,658 toner cartridges

1. Did they nail the headline?

14. Starbucks is removing these 13 menu items from its menu next week

1. Espresso Frappuccino

2. Caffe Vanilla Frappuccino

3. Java Chip Frappuccino

4. White Chocolate Mocha Frappuccino

5. Chai Creme Frappuccino

6. Caramel Ribbon Crunch Creme Frappuccino

7. Double Chocolaty Chip Creme Frappuccino

8. Chocolate Cookie Crumble Creme Frappuccino

9. White Chocolate Creme Frappuccino

10. White Hot Chocolate

11. Royal English Breakfast Latte

12. Iced Matcha Lemonade

13. Honey Almondmilk Flat White

1. over 600 calories each with 90g… yes, 90g… of sugar - that’s the equivalent of 13 Pillsbury Chocolate Chip Cookies for breakfast!

15. State Street Shelves Board Diversity Goals Amid DEI Backlash

1. “we believe nominating committees are best placed to determining the most effective board composition”

2. "Overnight on the eve of International Women’s Day 2017, we placed Fearless Girl in New York’s financial district to ignite a conversation about the importance of gender diversity in corporate leadership."

3. State Street Nominating Committee: 40% of influence; combined with CEO = 67% influence; these four highest had most votes against at 2024 AGM

1. William L. Meaney* (2018-)

1. 9% influence; fourth highest

2. .606 overall (above company .428 average); high in earnings and controversies (relative to board)

2. Amelia C. Fawcett (2006-)

1. 17% influence; second behind CEO Ron O’Hanley (27%)

2. .350 overall; below all 4 averages

3. Lead Director

4. Exec at Morgan Stanley along with director Patrick de Saint-Aignan for 19 years

5. Dame Amelia Chilcott Fawcett DBE CVO

3. Gregory L. Summe (2001-)

1. 14% influence; 3rd highest influence

1. .472 average

2. Served on NextGen Acquisition Corporation board with director Sara Matthew

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Nom committees

State Street Shelves Board Diversity Goals Amid DEI Backlash

• On average, where nominating committees have at least one person of color or one woman, the board is 35% merit vs. 26% merit with no women or people of color

• In fact, there is a 72% positive correlation between nominating committees with more merit on them and more merit on the board writ large.

• State Street’s nom committee fits in the ZERO people of color and 33% “diverse” with one woman on it