Did Trans Hijack Pride?

“Once somebody has gone through male puberty, there is no way to erase that physical advantage. You cannot simply turn back the clock, for instance by trying to lower testosterone levels.” — 18-time Tennis Grand Slam winner Martina Navratilova

“In addition to being forced to give up our awards and our titles and our opportunities, the NCAA forced me and my female swimmers to share a locker room with (Lia) Thomas, a 6-foot-4, 22-year-old male equipped with and exposed male genitalia. Let me be clear about this – we were not forewarned we would be sharing a locker room. No one asked for our consent and we did not give our consent.” — Former Kentucky swimmer Riley Gaines testifying last Wednesday at a US Senate hearing, ‘Protecting Pride: Defending the Civil Rights of LGBTQ+ Americans.’

Is Trans a Bridge Too Far? Is Trans simply too much too fast? Is Trans misogynist? Did Trans hijack Pride?

Almost DailyBrett bravely or maybe even foolishly poses these questions as we near the end of June, Pride Month.

What should have been 30 days of Pride Month celebration — countless opportunities for shameless corporate virtue signaling — instead degenerated into a boiling cauldron of controversy.

One letter of the ever-lengthening acronym — LBGTQ+ — is literally sucking the air out of the room for all of the others. Where else does a “T” have the same effect?

The Gallup Organization reported earlier this month that 71 percent of Americans support same-sex marriage (includes your author), up from only 27 percent in 1996. This once-tricky issue has been decided and embraced on a nationwide basis.

At approximately the same time, Pew Research revealed an increasing American consensus (60 percent) that gender is indeed determined at birth. Think of it this way, a given gender is a demographic. Trans is a chosen First World psychographic.

The Washington Post/Kaiser Family Foundation (KFF) survey reported that 65 percent oppose biological males competing in women’s college or professional sports. The same poll demonstrated a near identical level of opposition for biological males in girl’s youth sports, 62 percent.

Pride Is More Than Colors Of The Rainbow

“If two guys want to get married, I could care less. Let them be miserable just like all the rest of us. If someone wants to blow up their wedding, then I care.” — Comedian Dennis Miller

“It wasn’t that long ago when adults asked the kid, ‘What do you want to be when you grow up?’ They meant, ‘What profession?'” — Bill Maher, Along For The Pride, June 2022

For virtue signaling corporations — not to be confused with those engaged in (doing good) corporate social responsibility (CSR) — Pride Month was just so rainbow colors, easy. The masters of green washing and pink washing moved onto yet another shooting-fish-in-a-barrel round of cause marketing.

‘We’re cool. If you don’t believe us, just ask.’

Politically motivated marketing wizards for a growing list of companies are under siege by their own customers, communities, shareholders, investors, employees and the business media. They mistakenly embraced the trans-movement as if it’s identical to other Pride categories.

Are the customers, who won’t purchase your products, or investors, who won’t buy your stock, are they now all bigots? What were they before your misguided trans-oriented marketing campaign?

Back to the basics: How does your company make money? Who is your audience?

Once-upon-a-time market-leader Bud Light targeted its advertising for making-love-in-a-canoe mediocre tasteless beers to younger, lower-income Anglo males. How does trans-celebrity Dylan Mulvaney help Anheuser Busch market and sell Bud Light to this audience?

It doesn’t. It does the opposite.

Growing up in LaLaLand, Almost DailyBrett does not recall any political demonstrators at Dodger Stadium, opened in 1962 in Chavez Ravine. And yet on Friday night June 16 Catholics were out en masse (no pun intended) demonstrating as cars attempted to enter the stadium’s parking lot.

Didn’t the club’s marketing department understand there are an estimated 4 million Catholics — many of them Hispanic — reside in Los Angeles County? Why invite, disinvite and re-invite the Sisters of Perpetual Indulgence with their disgusting public gig mocking Catholics?

At best the Dodgers’ marketing department comes across as incompetent.

By supporting Pride Month in a generic sense, companies have chosen to participate and engage in virtue signaling. When it comes to plunging into the radioactive trans debate, Almost DailyBrett sees a growing list of examples for staying away from explosive no-win social issues: Bud Light, Disney, Los Angeles Dodgers, Target.

And when the subject revolves around biological men displaying naughty bits in the women’s locker room, it’s not a celebration of civil rights. It’s downright creepy.

https://www.foxnews.com/sports/riley-gaines-slams-ncaa-allowing-lia-thomas-compete-championships-emotional-testimony

https://news.gallup.com/poll/506636/sex-marriage-support-holds-high.aspx

https://www.washingtonpost.com/education/2023/05/05/trans-poll-gop-politics-laws/

https://nypost.com/2023/05/05/majority-of-americans-believe-gender-determined-at-birth-against-biological-males-in-womens-sports/

https://www.foxnews.com/us/nyc-drag-marchers-chant-were-coming-your-children-during-pride-event

Americans’ Complex Views on Gender Identity and Transgender Issues

The Perils Of Corporate Virtue Signaling

Reaching Moral Higher Ground And Telling The World

Woke Mickey Mouse?

The Perils Of Corporate Virtue Signaling

“When Bud happened, I can’t believe the board didn’t wake up to that decimation market cap … Budweiser was the American beer. It took decades to build that brand, and they blew it up in 30 hours.” — CNBC Shark Tank investor “Mr. Wonderful” Kevin O’Leary

Want to piss off everyone left and right?

The Los Angeles Dodgers first invited the anti-Catholic Sisters of Perpetual Indulgence to a special Pride Month celebration June 16. Next, the club uninvited the drag group mocking nuns, only to reinvite them again. When all was said and done the Dodgers managed to offend everyone (even their star pitcher Clayton Kershaw), but most of all their loyal Hispanic fan base.

Comprende?

And what is the predominant religion of this growing demographic? How about Roman Catholicism? You want a group on your home field making cruel “fun” of 1.5 billion Catholics?

As a decade-long director of Corporate Public Relations for LSI Logic and later as an assistant professor of public relations, corporate communications and investor relations, Almost DailyBrett provided C-suite counsel and taught students to appreciate the distinct difference between fiduciary responsibility (doing well) and corporate social responsibility (doing good).

Self-congratulatory Corporate Virtue Signaling is not Corporate Social Responsibility (CSR). Corporate Virtue Signaling has absolutely zero connection with legally mandated Fiduciary Responsibility, driving the top and bottom lines. Corporate Virtue Signalers by their well-documented mistakes obviously do not understand the premise of Buy Low Sell High.

Is Corporate Virtue Signaling the latest iteration of Green Washing (‘we’re doing great for the environment’) or Pink Washing (‘we’re attune of breast cancer awareness month’)? If you don’t believe us, just ask.

Why don’t we connect transgender activist Dylan Mulvaney to Bud Light beer cans? Oh, that’s already been done. How did that work out with your suds drinking audience — Anglo, Male, Younger, Lower Income — Anheuser Busch?

Why don’t we offer tuck-it-away women’s bathing suits to cover up naughty hombre bits that are product of birth? Whattayathink le Target’?

Should Virtue Signaling Corporations Enter The Abortion Fight?

“I’ve never seen a case where one item, that tuck swimsuit, that’s really what made the difference versus the competitors. That’s where the big mistake [was] made.” — former Target Vice Chairman Gerald Storch

“Do you ever hear a CEO that represents a company ever talking about abortion. Never. Because that is an issue that will never be resolved. It’s a personal issue. It’s a family issue. It’s a religious issue. It’s partisan forever. You don’t touch it. Same thing with politics. Same thing with gender identity. Everybody has a personal opinion about it. When you actually get involved in a fight like that, you lose 50 percent of your constituency.” — Kevin O’Leary on the compelling need for corporations to stay away from social issues

Almost DailyBrett served as a vice president and director of two industry trade associations, including the Semiconductor Industry Association. The SIA serves as the political lobbying arm for America’s chip designers/manufacturers.

Our primary purpose in the 1990s was to open Japan’s protectionist semiconductor market to foreign suppliers (U.S., European, Korean etc.). The association took the political slings and arrows and as a result, helped our members (i.e., Intel, AMD, Micron, Texas Instruments, LSI Logic, Motorola …) protect their own hard-earned corporate brands and reputations.

Why mix brands with combative politics and religion? Didn’t mom say to never discuss politics and religion?

What happens when a company foolishly decides to put its hard-earned brand and reputation at risk, dividing and offending its customer base in order to please a minority of its employees? Anheuser-Busch, Disney, Kohl’s, Target and the Los Angeles Dodgers are present-day champions of Corporate Virtue Signaling.

Who’s next?

There is a silent majority in America, who will quietly decide to not buy the product, not attend the theme park, not buy tickets to the game, not stream the video and even boycott the brand. The results will be a massive loss of market capitalization, declines in the top line revenues and bottom line results.

For what purpose? Corporations are not bestowers of civil rights, never have been never will be. Don’t ask, don’t tell.

Next up for corporate virtue signalers will be securities lawsuits, analyst downgrades (e.g., Anheuser-Busch, Target), fired chief executives (e.g., Bob Chapek of Disney), divided employees, PR nightmares and enduring hits on corporate reputation and brand, some of them permanent.

Worse yet? It all could have been avoided by just saying ‘no’ to self-serving Corporate Virtue Signaling.

https://www.cnbc.com/2023/06/03/anti-pride-backlash-what-target-anheuser-busch-and-others-should-expect-next-.html

https://www.hollywoodreporter.com/news/general-news/dodgers-apologize-drag-nuns-sisters-perpetual-indulgence-1235498144/

https://www.foxnews.com/media/kevin-oleary-target-pride-merch-decision-huge-mistake-losing-billions-market-value

https://www.foxnews.com/media/former-target-exec-reveals-one-item-that-sparked-consumer-firestorm

Is An Adult Back In Charge At Disney?

Disney’s Roe v Wade Silence?

Fiduciary Responsibility vs. Corporate Social Responsibility

When Boy Meets Girl

Woke Mickey Mouse?

“They’re (Disney) going to criticize the fact that we don’t want transgenderism in kindergarten and first grade classrooms – if that’s the hill that they’re going to die on — then how do they possibly explain lining their pockets with their relationship from the Communist Party of China? — Florida Governor Ron DeSantis

“I have watched constantly that in our work the highest moral and spiritual standards are upheld.” — Walt Disney

Is Walt Disney rolling over in his grave?

Why place at risk the most loved, celebrated and happiest brand on the planet?

Does everyone at Disney really support teaching to Florida K-3 students without their parents consent the birds and the birds, the bees and the bees, birds becoming bees and bees becoming birds? Heck, are the birds and the bees appropriate discussion for those under the Age of Reason?

As a former director of corporate public relations for a publicly traded Silicon Valley company and head of communications for two trade associations, Almost DailyBrett would paraphrase Governor DeSantis’ words to Disney management: ‘Is this the hill we as a company really want to die on?’

Why is the corporation (NYSE: DIS) even in this fight?

Doesn’t it realize that trade associations exist to lead industry political campaigns to protect the image of individual corporations? Is this a decision that legendary Disney chairman and former CEO Robert Iger would make? Would the late Walt Disney concur?

Does everyone at Disney’s Burbank headquarters really believe that Florida’s Parental Rights in Education bill is simply and poetically ‘Don’t Say Gay?’ Did anyone at Disney — including struggling CEO Bob Chapek — actually read the plain English of the bill?

Some myopic PR pros may argue only on behalf of Corporate Social Responsibility (CSR) or doing good. What about the reciprocal Fiduciary Responsibility or doing well? Disney shares are down 25 percent in the last year. Shareholders cannot be happy with their Disney investments.

Will Disney support a corresponding boycott of Florida?

How many people visit Disney World in Orlando each year? The answer is approximately 58 million. Does a Sunshine State boycott help or hurt Disney?

How about essentially declaring war on Governor DeSantis, a man who may eventually become POTUS #47?

Will Disney deliberately bite into its top and bottom lines? How does this unfortunate decision square with the company’s fiduciary responsibility to its employees and shareholders?

What about moderate-conservative Republican and Independent parents, who may not support the woke agenda? Will they stop purchasing and supporting all things Disney at their homes?

Isn’t their green just as green?

What About Red Hot Employees?

Almost DailyBrett served as the head of employee communications for approximately seven years. Your author appreciates the challenge associated with choreographing messaging from management to employees, especially the approximately 203,000 who work for Disney.

Disney is providing competitive salaries, world-class benefits, a fun working environment and in many cases as publicly traded company Employee Stock Purchase Plan (ESPP) or even stock options to its employees working at its studios, theme parks, streaming video services and networks.

Not all employees think the same, particularly at a multi-national corporation with a wide variety of business units. Are the woke political views of some employees more important than other competing views?

Disney is not a charity, it’s not a political entity, it’s a for-profit corporation.

A wise management participates in public affairs through its trade association, leaving politics to others.

It’s nothing personal, it’s just business.

https://www.palmbeachpost.com/story/news/politics/2022/03/25/desantis-slams-disney-floridians-rail-against-dont-say-gay/7161793001/

https://www.hollywoodreporter.com/business/business-news/disney-ceo-bob-chapek-florida-dont-say-gay-bill-response-1235105879/

https://www.foxnews.com/politics/florida-desantis-signs-parental-rights-education-bill

Fiduciary Responsibility vs. Corporate Social Responsibility

Gavin Newsom’s Fight With Mickey Mouse

When Boy Meets Girl

Trading Burgers For Buns

Almost DailyBrett made the decision to sell Big Macs and buy sexy $100 yoga pants.

Not literally. Your author took a profit in McDonald’s (NYSE: MCD) and plowed the proceeds into LuLuLemon Athletica (NASDAQ: LULU).

McDonald’s operates 40,000 stores around the globe and feeds 1 percent of the planet’s population every day. What other fast-food firm can make that claim? Absolutely no one. Sounds like a great investment.

The reason for selling MCD was simple: It was time. McDonald’s made a solid run during the Covid-19 pandemic, and it was time to ring the register. That doesn’t mean the stock will not once again overachieve. It will. For your author, it was time to take a nice profit.

To borrow some overused Wall Street metaphors: “There are bulls and there bears and pigs get slaughtered.” And “Never apologize for taking a profit.”

More importantly, “Buy Low Sell High.” Where have you heard that one before?

The decision was made: Sell Big Macs higher and buy high-margin yoga pants lower. Shouldn’t that recipe always be the plan?

LULU took a dive right after reporting solid fourth quarter/annual earnings (e.g., buy on rumor, sell on news). Even through your author already owned shares of Nike (NYSE: NKE), the decision was still made to invest in another athletic apparel provider, one that had a particular appeal to the fairer gender.

Couldn’t Almost DailyBrett simply invest in a discretionary consumer mutual fund that holds both McDonald’s and LuLu? Sure, but where’s the fun in that?

Besides who wants to pay commissions?

Your Own Personal Mutual Fund?

“Put your money in 401ks. Put your money in pensions and just leave it there. Don’t worry about it. It’s all doing fine. — When are we going to realize in this country that our wealth is work? We are workers.” — Jon Stewart to CNBC’s Mad Money host and former Goldman Sachs hedge fund manager, Jim Cramer

In this fleeting era of commission-free trading before Biden doubles the capital gains tax on investments: Why not be your own mutual fund manager?

There are no commissions in the Almost DailyBrett mutual fund. Sometimes mutual fund managers win and sometimes they don’t, and they still charge you. Your author may win or maybe not, but sometimes there are dividends and zero commissions.

For way too many mutual fund buy side analysts, it’s not their money. Instead it’s impersonal AUM or assets under management. When it comes to personal assets, your author wants to be the investment manager.

Don’t get Almost DailyBrett wrong. There are mutual funds in your author’s portfolio (e.g., Fidelity Contrafund), but the majority of assets including cash are win or lose under his management. As a retiree, your author will not put all of his golden eggs in one basket and will diversify — to a point.

The most important consideration is a question always posed to your author’s university Corporate Communications/Investor Relations students: “How does a company make money?”

Almost DailyBrett has no clue how speculative Bitcoin makes money, it’s a Ponzi Scheme. No one knew how Enron made money, and as it turned out the celebrated energy trader lost its derriere year-in, year out and lied about it.

Keeping in mind that one-half of all the companies on the Year 2000 Fortune 500 list are now kaput, your author only invests in established well-managed companies with great track records and totally understandable business models. Better yet your author invests in company shares in which he uses the products (e.g., wearing Nikes to Starbucks and paying for lattes with an Apple smartphone).

Another key is to invest in best-of-breed market leading companies run by great chief executive officers, who care deeply about both Fiduciary Responsibility (Doing Well) and Corporate Social Responsibility or CSR (Doing Good). The absence of empathy about shareholders and employees or about a company’s impact on the environment and the community is always a warning sign for investors.

It doesn’t hurt in your author’s eyes that Salesforce.com is run by fellow USC alum Marc Benioff or NVIDIA was founded by former LSI Logic colleague Jen-Hsun Huang. One is a pioneer in enterprise software, the other is the undisputed leaders in graphics semiconductors.

A mutual fund manager retiree should always invest, not trade. Watch CNBC. Check your Charles Schwab account daily. Keep track of personal wealth.

Somedays you are making money, and other days you are not. Don’t get giddy, don’t get depressed.

Most importantly, don’t pay commissions to someone else. Pay yourself.

http://therebeller.blogspot.com/2009/03/jon-stewart-pummels-jim-cramer.html

Fiduciary Responsibility vs. Corporate Social Responsibility

Farewell LSI Logic

Buy Low And Sell High Millennials

When the last Baby Boomer bites the dust, Millennials will inherit $22 trillion.

Today, Millennials own $9.1 trillion in assets or 7 percent of the total amount held in America. At the same time in their respective lives, Baby Boomers (hatched 1946-1964) controlled 26 percent of the total.

Many Millennials (born 1980-2000) are justifiably upset they may not be able to buy desirable homes or condos in reasonable proximity to places of employment, but where are these Zoom places of work anyway?

Employing The Law of Unintended Consequences, Covid-19 drove virtually everyone indoors, wearing masks away from each other. The stereotypes are digital native Millennials spending hours behind their platform of choice, playing video games.

Sometimes stereotypes are correct, but surprisingly the video game of choice for more than a few Millennials and even some Z-Gens are commission-free retail Wall Street online trading platforms (i.e., Robinhood, E -Trade, Charles Schwab…).

Check out the photo of the Robinhood team above. These Millennials are guiders of the future of economic freedom.

The perception is that Millennials in droves are enamored with socialism, even siding with Bernie Sanders and his call for “Democratic Socialist Revolution.”

This fling may be true, but there is another side of the story. These very same Millennials are embracing the freedom to invest in the form of online trading in publicly trading companies from America’s Apple to China’s Alibaba.

Heck, they are even putting more than a few shekels into the B-shares of Warren Buffett’s Berkshire Hathaway.

Buy Low Sell High Millennials, and Generation Z too?

Does that mean that Millennials and Generation Z (born 2001 and beyond) are selling out or are they just buying in?

No One Wants To Be Poor

“The beardless youth does not foresee what is useful, squandering his money.” — Poet Horace, 15 BC

As a former Central Washington University Assistant Professor, Almost DailyBrett particularly enjoyed teaching Corporate Communications/Investor Relations to Millennials.

Many were more than a tad scared about learning the mysteries of Wall Street (i.e., income statements, balance sheets, market capitalization, earnings per share, price/earnings ratios … ).

For their finals, student teams conducted buy side/sell side analyst conferences for publicly traded companies (i.e., Amazon, Starbucks, Microsoft, Costco, Nordstrom). They dressed up. The looked the part. They used the language of business.

They were professional. They were awesome.

Why would these students sign up for this particular “elective” course? One reason is none of them wants to be poor.

Are they laying down their lives for the root of all evil, money? Are they leaving socialist justice in their respective wakes? The answers are ‘no’ and ‘maybe.’

At the risk of overgeneralizing, Millennials have a keen interest in successful and cool ESG companies (Environmental, Social, Corporate Governance). The can smoke out companies resorting to green washing and pink washing.

They want to invest in those devoted not only to fiduciary responsibility (e.g., doing well), but just as important companies paying true homage to CSR or corporate social responsibility (e.g., doing good).

Aren’t Millennials and certainly Z-Gens starving in our pandemic world? Some are. Some obviously are not, particularly those who are investing on retail trading platforms right now, and presumably for years to come.

Charles Schwab is offering stock slices, allowing Millennials to buy small portions of one share of a cool company’s equities.

Apple and Tesla split their shares four-to-one and five-to-one respectively. Who are the beneficiaries? The institutions (mutual funds buying stocks and brokerage houses recommending stocks)?

The answer is retail investors. And who is the future of retail investment? Millennials and Z-Gens. They are making their own money, starting right now.

And when the Sex, Drugs and Rock and Roll generation passes into the ether, they will leave $22 trillion in assets to Millennials and Z-Gens.

Be smarter than your predecessors: Buy Low Sell High!

https://www.economist.com/leaders/2020/10/24/in-defence-of-millennial-investors

https://www.economist.com/finance-and-economics/2020/10/20/wall-street-will-soon-have-to-take-millennial-investors-seriously

https://www.investingsimple.com/robinhood-vs-charles-schwab/

https://www.dallasnews.com/business/2019/11/30/schwab-is-the-latest-company-leaving-california-for-texas-and-it-wont-be-the-last-expert-says/

Fiduciary Responsibility vs. Corporate Social Responsibility

Stop Dissing America’s Investor Class

“Since my election, United States stock markets have soared 70 percent, adding more than $12 trillion to our Nation’s wealth, transcending anything anyone believed was possible — this, as other countries are not doing well.” — President Donald Trump, 2020 State of the Union

In our tribalized society, we are obsessed with dumping groups of people into buckets.

Even more to the point, we microanalyze targeted demographic groups (i.e.., women, men, black, white …).

We also record, register and analyze responses by psychographic groups (i.e., income, education, creed … ).

Almost DailyBrett must stop here and ask: Are we spending enough time considering America’s growing Investor Class?

“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90, and even 100 percent.” And IRAs too, Mr. President.

Who are these people? Are they just the “filthy rich?” Are they just the 1 percent?

Or are they mommies and daddies, brides and grooms, anybody and everybody investing in their retirements, college tuition for their children, dream vacations or to start a new business?

In 1960, only four percent of all shares traded were directly tied to retirements. Today that retirement figure is 50 percent of all the stocks traded daily on the NYSE and NASDAQ.

Almost DailyBrett will once again pose the question: Who are these people? And are we as a society giving them the love they deserve?

According to a 2019 Gallup quantitative survey of more than 1,000 Americans, 55 percent own individual stocks or stock-based mutual funds for their investment portfolios including retirement oriented IRAs and 401ks … and even the few who still have pensions.

Yes stock ownership took a hit during the 2007-2010 financial meltdown, but the trend has stabilized with the tailwinds of a record bull market.

No Fees Today, Tomorrow, Forever

“Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news.” — Paul Krugman of the New York Times upon Trump’s 2016 election

Guess America’s Armageddon was postponed.

Since November 2016, the NYSE has advanced from 18,332 to 29,290, up 59 percent, the NASDAQ has increased from 5,193 to 9,508, up 83 percent, and the S&P 500 from 2,139 to 3,334, up 52 percent.

And how are markets behaving now with a dovish Federal Reserve, Impeachment done, Brexit over, corporate earnings better than expected, robust consumer confidence, full employment and the American economy demonstrating its best performance in five decades?

Even though there always the risk of the Dow Jones Effect (e.g., what goes up at some point will come down), we are talking about a calculated risk … less so by the members of America’s Investor Class, who pay daily attention to the markets and more precisely their portfolios.

The major retail investment firms (i.e., Charles Schwab, Edward Jones, E*Trade, TD Ameritrade, Robinhood … ) have all waived their trading fees, making it even easier for investors of all income levels to participate.

And for investors concerned about the environment, society and corporate governance, there are specific ESG (Environment, Social and Governance) funds.

Publicly traded companies have learned they must not only be concerned about fiduciary responsibility, but corporate social responsibility (CSR) as well. It is more than driving the top-and-bottom lines and projecting a reasonable future expectations (Doing Well), but it’s also being genuinely mindful of a company’s caring for its employees, participating in communities and safeguarding the environment (Doing Good).

To top it off, America’s Investor Class is served by reasonable regulation of publicly traded companies by the Securities Exchange Commission (SEC), which mandates fair disclosure. The Federal Trade Commission (FTC), guarding against false advertising. And there is the Department of Justice, which prosecutes corporate crime (e.g., Enron bankruptcy).

And finally don’t these publicly traded companies make our products and services, employ millions and make our society more efficient? Apple puts a computer in our hands with its clever smart phones. Google is an instant encyclopedia of knowledge. Amazon is global shopping platform. Facebook allows us to keep track of friends and families.

If Something Isn’t Broken, Why Fix It?

Are global markets, perfect? What is?

Are the NYSE and/or NASDAQ playing fields 100 percent level? What are?

Is America’s Investor Class thriving and directly driving our consumer-based service economy? You bet ya.

Then why are there those who want to punitively impose federal taxes on each and every stock and mutual fund trade (i.e., Bernie and Elizabeth)? Who are they trying to punish? The real answer are the mommies and daddies of America’s Investor Class.

Yes, many of these investors are part of the upper class, and even the lower upper. The honorable senators need to appreciate the composition of America’s investor class also includes the upper middle, the lower middle … and each and every person who engages in dollar-cost averaging or continuous investing in both bull and bear markets.

America’s Investor Class puts its discretionary income into the nation’s best-of-breed publicly traded companies to pursue their dreams of happy retirements, highly educated children and/or bucket list vacations.

They matter. They vote. And they deserve our support … not dissing from always angry members of America’s political class.

https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx

https://www.usatoday.com/story/news/politics/2020/02/04/state-union-read-text-president-donald-trumps-speech/4655363002/

Fiduciary Responsibility vs. Corporate Social Responsibility

Not With My Money, Salesforce.com

A “memorable” $211,703 Porsche or Land Rover?

A “visible” $86,423 Rolex?

And let’s not forget the applicable taxes on these two giveaways: $179,977 and $38,005 respectively.

For those scoring at home, Salesforce.com (NYSE:CRM) provided $516,108 in goodies to one man: newly minted co-CEO Keith Block, 57.

The Salesforce.com Compensation Committee justified the corporate largesse in its proxy statement filing:

“In this case, the committee approved this award because it believed that recognizing Mr. Block’s leadership and success in achieving company goals was warranted, and that doing so in a memorable and visible way would be motivational not only for the executive, but for other employees who observe exceptional performance being rewarded in exceptional ways consistent with the company’s philosophy of paying for performance.”

Paying for exceptional performance?

Does Block walk on water? Does he change water into wine? Does he dole out loaves and fishes to feed the hungry?

Before being named co-CEO last August, Block was already earning $2.3 million annually in salary and bonuses (not including stock option exercises) as the company’s vice chairman, president and chief operating officer.

Almost DailyBrett extensively researched and taught the relationship between fiduciary responsibility (doing well) and corporate social responsibility (doing good) as a master’s student at University of Oregon and later as a PR professor at Central Washington University.

Your author also served as the director of Corporate Public Relations for LSI Logic (NYSE: LSI) for a decade including preparing 10-Q, 10-K and 8-K news releases and regulatory filings for financial media and the SEC.

More to the point, Almost DailyBrett is a long-time Republican, free-enterprise supporter, and up-to-now a more than satisfied shareholder of Salesforce.com founded by fellow USC alum Marc Benioff.

Let’s state here and now: giving away a cool car and groovy watch (plus paying related income taxes for these two goodies) is inconsistent with Salesforce’s fiduciary responsibility to its shareholders … including not trying to be SaaS-see,  yours truly.

God help the company’s corporate PR department.

Ready to make chicken salad out of chicken feces?

How do you defend the indefensible? How do you stand-up on behalf of the untenable? Did the Compensation Committee discuss its decision with the PR types before giving away a Porsche and a Rolex to Monsieur Block?

And where is Salesforce.com located? San Francisco.

Do you think Bernie, Kamala or Elizabeth supporters residing in the Sodom and Gomorrah by the Bay are going to seize about this outrageous caper as an example about everything wrong with corporate America?

Occupy Salesforce?

Publicly traded corporations (e.g., Salesforce) provide the products we need (e.g., enterprise software), employ millions (e.g., CRM, 29,000) and provide a return on capital to millions investing in their retirement, health care or children’s education.

Buy-side (i.e., mutual funds, retirement systems) and sell-side (i.e. Goldman, JP Morgan, Morgan Stanley) institutions hold 82 percent of Salesforce’s 774 million shares outstanding.

In contrast, Almost DailyBrett is a lowly Charles Schwab retail investor with 300 shares.

If your author threatened to sell all of his shares because he is upset by the Keith Block giveaways, would company even notice, let alone care?

Heck, your author’s holding is a friggin’ corporate rounding error.

Salesforce has demonstrated by its regulatory filing temerity, it really doesn’t take fiscal stewardship and fiduciary responsibility seriously.

Actions speak louder than words. The perception and reality both stink.

No carefully massaged explanation and no amount of corporate social responsibility (CSR) – including calling for local tax increases to take care of the homeless – are going to change the undeniable fact that giving away a luxury car, a costly watch and paying the related taxes for one lousy executive … is wrong.

Dead wrong to be precise.

Almost DailyBrett editor’s note: According to Business Insider, the company did not disclose the exact make or model of Keith Block’s new car and watch. However, an educated guesstimate was made by the digital publication based upon the disclosed sales prices and related tax payments for the two luxury items. If the company actually bought Block a Lamborghini instead of a Porsche, your author will accept personal responsibility for the egregious mistake.

https://www.businessinsider.com/salesforce-ceo-keith-block-car-watch-2019-4

https://www1.salary.com/Keith-Block-Salary-Bonus-Stock-Options-for-SALESFORCE-COM-INC.html

https://www.salesforce.com/company/leadership/bios/bio-block/

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/

 

 

 

Profs Should Not Force Political Opinions On Students

“Can’t decide whether you are a Democrat or a Republican …”

Bless these two students, who on separate occasions, refreshingly relayed their puzzlement to Almost DailyBrett.

Your author does not believe that classrooms should ever be the venue for the indoctrination, let alone the formation of young warriors in the fight between noble socialism and evil capitalism.

Gee … maybe … just maybe these students are smart enough to make up their own minds on these issues?

Even though long-time Almost DailyBrett readers and contemporaries know or at least suspect your author’s political predilection, it was rewarding to know at least some of my students weren’t so sure … and that is how it should be for all professors or instructors.

There seems to be a contagious disease among tenure-track or tenured academic types (e.g., professors and instructors) that university students are there to endure for hours on end of their personal political pontifications and bloviations.

Is that why students are taking out loans averaging $30,000 each, waiting tables or asking mom and dad to dig deep … real deep … for their college education?

Don’t think so.

Buy Low, Sell High

As Almost DailyBrett fondly looks back to more than five years teaching public relations, integrated marketing, corporate communications and investor relations, one particular moment always brings back tears to the eyes.

More than 30 of my Central Washington University PR students chanted in unison … “Buy Low, Sell High!” … at my retirement party.

Upon receiving the Central Washington University Department of Communication Faculty Spotlight Award, they gathered around me for a group picture. Your author will always remember this moment.

Isn’t optimistic Buy Low and Sell High the essence of capitalism, particularly publicly traded corporate capitalism?

The answer is “yes.” Keep in mind that buying low and selling high is easier said than done. More importantly this phrase is the backbone to the practice of fiduciary responsibility on behalf of the 54 percent of Americans investing in stocks and stock-based mutual funds.

America’s investor class — planning for retirements, funding higher education for their children, opening up a new businesses — require accurate and complete communication about a company’s business plan, financials and simply … how does a corporation make money?

The highest expected communications professional compensation levels … usually in six figures … are directed to students adept at financial communications, who are studying at today’s schools of journalism and mass communication.

Almost DailyBrett believes wholeheartedly the purpose of universities/colleges is to prepare students to attain and sustain salaried professional positions with full benefits … and maybe even employee stock purchase plans (ESPP) and/or stock options.

Universities and colleges should be professional schools, providing students with lifelong learning skills and tools to succeed in our increasingly complex digital world … including beating artificial intelligence (AI).

If students wish to Occupy Wall Street that should be their choice, not their command.

By the way, how did that movement work out?

Students should always be fully aware of the imperfections of Capitalism. For example, watching The Smartest Men In The Room (Fortune’s Bethany McLean’s tome on the Enron bankruptcy) was required for each of your author’s Corporate Communications/Investor Relations classes.

In addition to the aforementioned Fiduciary Responsibility, a publicly traded company needs to complement this requirement with Corporate Social Responsibility (CSR). Besides doing well, a company should be mindful of doing good … including giving back to communities, protecting the environment … that make success, possible.

Certainly, students can be taught to live in tents, recite cumbersome theory or rail at the world back in their own bedrooms at mom and dad’s house.

They also can learn how to decipher an income statement, a balance sheet, a cash-flow statement and to understand the significance and formulas associated with market capitalization, earnings per share (EPS), and price/earnings (P/E) ratios and related multiples.

Looking back at your author’s professorship, there is no doubt about political disposition. There was also a comprehension that students are to be prepared for the professional world, and many of these graduates have done well, real well.

And if a couple of students or more, can’t tell whether Almost DailyBrett or any other professor/instructor, drifts left or right that’s the way … it should be.