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☆ Top US CEO pay rose 7.7% last year, outpacing inflation, study finds
▼ + stars: | 2023-05-03 | by ( Ross Kerber | ) www.reuters.com time to read: +3 min

May 3 (Reuters) - Median pay for top U.S. CEOs rose 7.7% last year to a record $22.3 million, a new study found, as big stock awards helped the group stay ahead of inflation while U.S. workers' pay fell behind. Pay among the CEOs rose faster than for U.S. workers in 2022 despite tight labor markets. Total return for the companies whose CEO pay was studied was negative 11%. He added that amid the macroeconomic uncertainty, "There's still a little more of this incentivizing of executives that's leading to the increases in CEO pay." "Our CEO’s compensation is and will continue to be 100% performance based," the spokesperson said.

[1/2] Florida Governor Ron DeSantis walks outside the Treasury during his visit in London, Britain April 28, 2023. The bill is one of the furthest-reaching efforts yet by U.S. Republicans against sustainable investing efforts, and a clear political message from DeSantis, a likely presidential candidate. We do not want them engaged on these ideological joyrides," said DeSantis just before he signed the bill at a webcast event. Analysts said the legislation goes further than other state anti-ESG bills, even as business groups worry the efforts pose financial risks. There are climate and weather risks that are highly relevant, especially in a state like Florida, and would be captured in our assessment of credit risk," Torgerson said.

☆ Factbox: Industry targets of U.S. Republicans' anti-ESG efforts
▼ + stars: | 2023-04-22 | by ( Ross Kerber | ) www.reuters.com time to read: +3 min

Here is a look at major efforts and, in some cases, their impact on specific industries. In addition, legislation pending in states, including Texas and Florida, aims to limit the consideration of ESG factors by pension funds, which could cut off fund firms from public contracts. Top fund firms such as BlackRock Inc (BLK.N) and State Street Corp (STT.N) - both NZAM members - have said their ESG efforts only support clients concerns, for instance the view that climate change poses investment risks. Several of the bills have been passed into law in states including Mississippi and West Virginia. Republicans failed to gain control of the U.S. Senate in elections held Nov. 8, however, limiting their investigative powers.

A Reuters review of testimony, previously unreported public documents and interviews with elected leaders, lobbyists and attorneys detail mounting challenges to many pending anti-ESG bills. The tussles have financial implications for some of the largest investment firms that manage billions of dollars for state pension plans. Lauren Doroghazi, senior vice president at government relations consultant MultiState Associates, said the debates show lawmakers coming to terms with the anti-ESG bills' practical impact. Several public pension systems raised concerns about it, including the largest, the $182 billion Texas Teacher Retirement System (TRS). For instance, if federally-regulated local banks faced new national rules on an issue like climate change disclosures, banks would need special permissions from local officials to keep public business in Utah he said.

"Climate change is an existential risk and a risk to investor returns," said John Galloway, who oversees the Pennsylvania firm's engagement and proxy voting at portfolio companies, in an interview by teleconference. Galloway said in practice the proposal, which won 42% support, would have required a wholesale change to Valero's business, a decision best left to the board. "A proposal that’s asking a company to make a change that’s changing its strategy is not a proposal we're likely to support," Galloway said. U.S. Republican politicians applauded the move as responsive to their efforts to counter many companies' treatment of environmental, social and governance (ESG) matters. Galloway said the decision was driven with an eye on the varied views of its largely retail client base.

☆ Uber is funding an e-bike trade-in program to curb battery fires
▼ + stars: | 2023-04-12 | by ( Samantha Kelly | ) edition.cnn.com time to read: +4 min

CNN —Uber is funding a new program that aims to get electric bikes with dangerous non-certified lithium-ion batteries off New York City streets. The news follows a string of fires caused by lithium-ion batteries, which have been known to overheat when charging and cause massive explosions. Earlier this week, the New York City police department said an e-bike’s lithium-ion battery was behind a fatal two-alarm fire in Queens. The FDNY’s Chief fire marshal John Hodgens said it was the 59th fire in the city this year caused by a lithium-ion battery. Part of the issue is that not all lithium-ion batteries are created equal.

Companies BlackRock Inc FollowBOSTON, April 5 (Reuters) - New York City pension leaders will press external fund managers, including private market fund managers, on Wednesday for details on their plans to cut greenhouse gas emissions, officials said. Public, and private market managers that have faced less pressure on climate issues to date, run most of the roughly $240 billion in New York City pension fund assets. Boards overseeing the majority of that money have approved new expectations for those managers, New York City Comptroller Brad Lander said, which will be announced on Wednesday. Lander urged BlackRock Inc last fall to take stronger environmental steps such as phasing-out high emitting assets. Lander said the plans recently approved by New York City pension boards extend similar calls to other external managers, including those that manage the 25% of pension assets held in fixed income and the 25% in private markets.

Meanwhile, Republicans, many from energy-producing states, have raised a growing chorus of challenges on ESG. This can be a problem for fund participants who do not share ESG goals, the Republicans wrote. Asset managers have argued that such memberships align with their fiduciary obligations, and some are giving clients more control over proxy votes. "Asset managers voting for the exclusion of one of their competitors has clear antitrust implications," the letter states. The resolutions were filed by activist shareholder group As You Sow, which the Republicans suggested had targeted Vanguard over its withdrawal.

Meanwhile, Republicans, many from energy-producing states, have raised a growing chorus of challenges on ESG. The latest letter built on concerns many of the same attorneys general brought to BlackRock last August. This can be a problem for fund participants who do not share ESG goals, the Republicans wrote. Another section of the Republicans' letter cites several pending shareholder resolutions that ask corporations to dial back the use of Vanguard Group retirement plan funds because of Vanguard's fossil fuel holdings. "Asset managers voting for the exclusion of one of their competitors has clear antitrust implications," the letter states.

March 23 (Reuters) - Large companies, including asset manager Franklin Templeton (BEN.N) and web-services provider Akamai Technologies Inc (AKAM.O), joined an effort on Thursday to defend sustainable investment practices from a backlash by U.S. Republican politicians. Republicans, often from energy-producing states, have sought to block the growing use of environmental, social and governance (ESG) considerations by shareholders and corporate executives. BlackRock Inc (BLK.N) for instance on Thursday said it would continue to press companies for information about climate risks. Mindy Lubber, CEO of sustainability nonprofit Ceres, which organized Thursday's statement, told a call with reporters that companies showed "some hesitancy" to speak up. But Anne Simpson, head of sustainability for Franklin Templeton, part of California-based Franklin Resources Inc (BEN.N), said on the same call that ESG efforts are "fiduciary duty at work".

"There are no material changes in our approach to these themes, and our engagement with companies will continue the dialogue on material risks and opportunities relevant to their business models and sectors that we had in 2022," it said. It said that environmental issues it would consider include "water use, land use, waste management and climate risk." The statements were in line with recent comments by BlackRock Chief Executive Laurence Fink in his recent annual letter. Fink said BlackRock has been vocal in seeking company disclosures about their plans to navigate the energy transition, but that "it’s not our place to be telling companies what to do." Reporting by Simon Jessop in London and by Ross Kerber in BostonOur Standards: The Thomson Reuters Trust Principles.

☆ BlackRock's Hildebrand reportedly taking part in UBS, Credit Suisse talks
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

March 18 (Reuters) - BlackRock Inc (BLK.N) Vice Chairman Philipp Hildebrand is taking part in talks as Swiss officials try to put together a deal for UBS Group (UBSG.S) to take over Credit Suisse Group AG (CSGN.S), Bloomberg News reported on Saturday, citing unidentified sources. Asked about the report, BlackRock spokesman Ryan O'Keeffe said in a telephone interview that "Philipp has no formal involvement in these discussions at all." Hildebrand, who joined New York-based asset manager BlackRock in 2012, previously chaired the governing board of the Swiss National Bank. Sources have told Reuters that UBS was mulling a takeover of embattled peer Credit Suisse, which could allay fears that an unfolding crisis at the latter bank could destabilize the global financial system. Earlier on Saturday, BlackRock said it has no plans or interest in acquiring Credit Suisse, after a report it was working on a bid to counter UBS.

Despite SVB's demise knocking the value of banks globally, particularly European lender Credit Suisse, U.N. climate envoy Mark Carney said he, too, did not expect a "material" impact on climate tech funding. "At a minimum, this will likely drive continued tightening of investments and a push to have their portfolio companies cut (cash) burn," it said in a note. Mona Dajani, partner at law firm Shearman and Sterling, said most of her clean energy clients either banked with SVB or faced some other impact from its troubles. SVB "cultivated a reputation as being very friendly to clean energy... they were willing to underwrite more risk," she said. "Not all the companies are going to make it and now that’s happening to climate companies."

☆ BlackRock CEO Fink warns of financial risks, persistent inflation
▼ + stars: | 2023-03-15 | by ( Ross Kerber | ) www.reuters.com time to read: +4 min

[1/2] Larry Fink, Chief Executive Officer of BlackRock, stands at the Bloomberg Global Business forum in New York, U.S., September 26, 2018. Fink wrote that after the regional banking crisis, the financial industry could see what he termed "liquidity mismatches." “It’s too early to know how widespread the damage is,” Fink wrote. BlackRock has previously said its diversified products "have limited exposure to Silicon Valley Bank." "The monetary and fiscal tools available to policymakers and regulators to address the current crisis are limited, especially with a divided government in the United States," Fink wrote.

☆ US Senators Menendez, Warren urge regulators to support new gun sale code
▼ + stars: | 2023-03-15 | by ( Ross Kerber | ) www.reuters.com time to read: +2 min

Senators Bob Menendez and Elizabeth Warren on Wednesday called on federal regulators to issue guidance to speed the adoption of a new merchant category code (MCC) by payment networks to identify firearms sellers. The Republicans say the codes could be used to improperly track gun purchases. The letter noted reports that mass shooters had used credit or debit cards to buy the guns and ammunition they used. There are more than 40,000 U.S. gun deaths per year, and regulations around guns are again emerging as a major political issue. On Tuesday, U.S. President Joe Biden issued an executive order that reinforced background checks for gun buyers.

☆ MSCI says it has deleted SVB parent from global standard indexes
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: 1 min

March 13 (Reuters) - Index provider MSCI Inc (MSCI.N) said on Monday it has deleted SVB Financial Group (SIVB.O) from global standard indexes. The index deletions of the parent of failed Silicon Valley Bank will be effective on March 14, according to an email sent by a company representative. Reporting by Ross Kerber Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Why lithium-ion batteries found in many products keep exploding
▼ + stars: | 2023-03-09 | by ( Samantha Murphy Kelly | ) edition.cnn.com time to read: +7 min

Officials believe the incident stemmed from a lithium-ion battery of a scooter found on the roof of an apartment building. “In all of these fires, these lithium-ion fires, it is not a slow burn; there’s not a small amount of fire, it literally explodes,” FDNY Commissioner Laura Kavanagh told reporters. For starters, lithium-ion batteries are now in numerous consumer tech products, powering laptops, cameras, smartphones and more. Despite the concerns, lithium-ion batteries continue to be prevalent in many of today’s most popular gadgets. For example, LFP (lithium iron phosphate) batteries don’t overheat as much as other types of lithium-ion batteries.

☆ Visa, Mastercard pause work on new payments code for firearms sellers
▼ + stars: | 2023-03-09 | by ( Ross Kerber | ) www.reuters.com time to read: +3 min

The Geneva-based International Organization for Standardization (ISO) approved the new merchant category code (MCC) in September to help detect suspicious firearms and ammunition sales to combat gun violence. A Mastercard representative said on Thursday via email that such bills would cause "inconsistency" in how the code could be applied by merchants, banks and payment networks. "It's for that reason that we have decided to pause work on the implementation of the firearms-specific MCC," said the Mastercard representative, Seth Eisen. Accordingly, Visa is pausing implementation of the MCC," Visa said in a statement sent by a spokesperson. The moves mark a setback for gun-control activists, though the payment networks stopped short of saying they would reject the code outright.

NEW YORK , March 7 (Reuters) - Bank of America Corp's (BAC.N) Chief Executive Officer Brian Moynihan had a clear message for shareholders on Tuesday: "We are capitalists." The proclamation from the head of the second-largest U.S. lender might seem obvious, but comes at a time when Wall Street titans face more criticism for embracing environmental, social and governance (ESG) considerations. The word "capitalism" is mentioned 22 times in BofA's latest annual report spanning 222 pages, rising from 16 times a year earlier. Still, the CEO acknowledged there are concerns about whether companies share profits or pay people fairly and equitably. The lender outlined its ESG goals in the report, including a pledge to achieve net zero greenhouse gas emissions by 2050 and deploy $1.5 trillion in sustainable finance by 2030.

☆ Analysis: US Republicans aim to stymie gun sale codes at state level
▼ + stars: | 2023-03-03 | by ( Ross Kerber | ) www.reuters.com time to read: +6 min

"I don't want card companies to raise interest rates or fees on merchants as a way to dissuade them" from selling guns and ammunition, Owen told Reuters. Visa Inc (V.N) declined to comment on the state bills. Other payment card companies Discover, Mastercard Inc and (MA.N) American Express Co (AXP.N) did not respond to requests for comment. Owen, the Mississippi state legislator, said he expects that payment companies could address any technical issues the bills could create. "I think the credit card companies are going to have to adapt on a state-by-state basis," Owen said.

March 3 (Reuters) - Republican-backed bills introduced in legislatures in several U.S. states target the use of a planned merchant code for credit card transactions at gun retailers that is intended to detect suspicious firearms and ammunition sales. read moreMajor credit and debit card companies have committed to using the "merchant category code" for gun sellers, a development welcomed by gun control advocates who call it an important new tool for investigating suspicious purchases. FLORIDAA bill introduced in Florida is meant to prohibit banks and other companies in the payment-settlement process from assigning the code "separately from general merchandise or sporting goods retailers." The bill passed the state House of Representatives on Feb. 9 and is under consideration in the state Senate. West Virginia's bill was passed by the state House of Delegates on Feb. 3 and awaits further action in the state Senate.

☆ Gerber ends Tesla board run, says carmarker creating 'own voice'
▼ + stars: | 2023-02-24 | by ( Ross Kerber | ) www.reuters.com time to read: +2 min

[1/2] A driver recharges the battery of his Tesla car, at a Tesla Super Charging station, in a petrol station on the highway in Chateauvillain, France, February 20, 2023. REUTERS/Pascal Rossignol/File PhotoCompanies Tesla Inc FollowBOSTON, Feb 24 (Reuters) - Tesla Inc (TSLA.O) investor Ross Gerber said on Friday he will end his run for the electric carmaker's board of directors, citing changes investors can expect to see next week. Tesla also will create more Twitter and promotional content, which could move the brand away from its close identification with Musk. Gerber, a Los Angeles investment manager, is a longtime Tesla bull who initially cast his run as that of a "friendly activist." While his wealth-management firm had only about 440,000 shares of Tesla he has received backing from larger shareholders online.

☆ Minority directors reach milestone 20% of Russell 3000 board seats
▼ + stars: | 2023-02-21 | by ( Ross Kerber | ) www.reuters.com time to read: +3 min

Still, most minority groups hold a smaller share of board seats than their share of the total U.S. population. Often the investors have found receptive audiences, but slow turnover on corporate boards has limited the pace of change, recruiters say. The biggest gain over the four-year period was for Black or African-American directors, who nearly doubled their share of board seats to 8.3% from 4.4% in 2019. They were most represented in the utility sector, with 12% of board seats, and least represented among information technology, energy and healthcare companies, each at 6%. Compared to Hispanics' total share of the U.S. population, their 3.6% share of board seats "isn't anywhere near where it's supposed to be," she said.

☆ Exclusive: Discover to enable tracking of purchases at gun retailers from April
▼ + stars: | 2023-02-17 | by ( Ross Kerber | ) www.reuters.com time to read: +2 min

Proponents of the move, including gun control activists and Democratic politicians, say it will allow financial institutions to better assist authorities in investigating crimes involving gun violence in the United States. Discover said it will include the new code in its next policy and product update to merchants and payment partners, in April. A Visa representative declined to comment on its schedule for the new code. "The decision to use the new merchant category code is eventually left up to the users in the industry," the ISO representative said. Industry leader Visa had a 61% share, Mastercard 26% and American Express 11%.

☆ Shareholder votes offer check on unjustified CEO pay at S&P 500 companies, study finds
▼ + stars: | 2023-02-16 | by ( Ross Kerber | ) www.reuters.com time to read: +3 min

Feb 16 (Reuters) - Compensation for S&P 500 (.SPX) chief executives has soared in recent years even as investors cast more of their advisory "Say on Pay" votes against management, leading to doubts about the ballots' usefulness. Discovery's total shareholder return for 2021 was minus 22%, versus a gain of 29% for the S&P 500. Warner Brothers Discovery, created last year when Discovery Inc bought AT&T's (T.N) media assets, has not set the frequency of its pay votes. To rank CEOs as "overpaid," As You Sow used criteria including shareholder returns, critical shareholder pay votes and the ratio of CEO to worker pay. It noted the average share of votes cast "against" executive pay at S&P 500 companies climbed to 12.6% last year, from 11.7% in 2021 and 10.4% in 2020.

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