💰 Has The Game Changed For CEO Pay?

Good morning. US stock futures dipped in Friday morning trading following record highs set by the S&P500 and Nasdaq indices.

🚗 Musk reigns supreme at Tesla

📝 Our report: Tesla shareholders gave a thumbs-up to Elon Musk’s record-breaking pay deal and greenlit a new Texas incorporation, showing their support for the CEO as he juggles multiple legal battles. "Hot damn I love you guys," Musk said after the votes were tabulated, while speaking at the company's annual shareholder meeting in Austin, Texas.

 🔑 Key points:

• The company did not immediately release the percentage of shareholders who voted for or against a $56 billion compensation package that was awarded in 2018 and then voided this year by a Delaware judge.

• The ongoing drama around the vote intensified in recent weeks as Tesla chair Robyn Denholm and Musk advocated forcefully for a newly submitted pay package that was similar to the original 2018 award invalidated by the judge.

• Musk became the latest of many bosses this year who successfully defeated attempts to tamp down their pay.

💡 So what: Elon Musk's new pay package, which ties his compensation to Tesla's performance, has significant implications for the company. It aligns his interests with those of the shareholders, incentivizing him to drive Tesla's growth and profitability. However, the substantial potential payout could raise concerns about income inequality and corporate governance, especially if Tesla faces challenges meeting the ambitious targets set in the package. Overall, while the package aims to motivate Musk to steer Tesla toward continued success, it also brings potential risks and controversies.

 Friday - Consumer Sentiment

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🏋🏽 Employers boost coverage of weight loss drugs

WHAT: According to a survey by the International Foundation of Employee Benefit Plans, about one-third of U.S. employer health plans now cover GLP-1 drugs for diabetes and weight loss—up from last year. GLP-1 drugs for weight loss grew as a portion of employers' overall medical claims spending to 8.9% in 2024 from 6.9% in 2023, the trade group's survey found. Only about 26% of employers offered the drugs last year.

WHY: GLP-1 drugs promote weight loss by reducing appetite and causing the stomach to empty more slowly. First approved to treat diabetes, Novo Nordisk's Wegovy and Eli Lilly's Zepbound are in high demand after having been shown to reduce weight by around 20%.

☕ Starbucks gets Supreme Court backing

WHAT: The U.S. Supreme Court gave Starbucks a win in its bid to avoid rehiring seven Memphis employees fired for trying to unionize. The justices unanimously threw out a lower court's approval of an injunction sought by the U.S. National Labor Relations Board (NLRB) ordering Starbucks to reinstate the workers while the agency's in-house administrative case against the Seattle-based company proceeds.

WHY: Hundreds of complaints have been filed with the NLRB accusing Starbucks of unlawful labor practices such as firing union supporters, spying on workers and closing stores during labor campaigns. Starbucks has denied wrongdoing and said it respects the right of workers to choose whether to unionize.

🏡 Tech giant ups investment in housing fund

WHAT: Amazon announced it's tossing an extra $1.4 billion into its Housing Equity Fund to whip up and preserve around 14,000 affordable housing units across three major cities where it has offices. The funds — to be invested in the metro areas of Seattle, Nashville and Arlington, Virginia — will bring the total investment fund to $3.6 billion and 35,000 housing units since its inception in 2021, the company said.

WHY: Launched in January 2021, the fund initially sought to create and preserve 20,000 affordable housing units in these three metros through an initial investment of $2 billion. Amazon claimed it had surpassed that goal by reportedly providing $2.2 billion across 21,000 affordable units.

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