Original link: https://www.latepost.com/news/dj_detail?id=1243
Hundreds of CEOs of global listed companies are forced to leave each year because of personal scandals
CEOs have been fired more often than ever over the past few years for ethical issues.
On Friday (July 22) local time, WWE CEO Vince McMahon resigned as he was under investigation by the board of directors for misconduct in his personal life over the past 16 years. In late June, Pedro Guimaraes, the head of Brazil’s savings bank, resigned amid allegations of sexual harassment.
This is only news at the top level of the company. According to a study by PricewaterhouseCoopers, 2018 may be the year in which CEOs have left their companies the most over ethical issues in their more than a dozen years of research into business leadership changes, at a record 7.8% (195 people), including Su Mingtian, former CEO of WPP, the world’s largest advertising and marketing company, and Ke Zaiqi, former CEO of Intel, and:
- Leslie Moonves, resigned over sexual harassment, CBS, $16.5 billion market cap;
- Brain Krzanich (ke Zaiqi), resigned due to office romance, Intel, $160 billion market value;
- Martin Sorrell (Su Mingtian), resigned for embezzling public funds to recruit prostitutes, WPP, $11.4 billion market value;
- Steve Wynn, resigned over sex scandal, Wynn Group, $7.1 billion market cap.
The record numbers are not due to a sudden moral downturn among CEOs. The #MeToo movement condemning sexual assault and harassment has spread around the world, and the outside world has become less tolerant and more direct of executive misconduct. Boards are also getting tougher on executives.
After all, compared with the market value loss caused by the scandal, the financial loss of giving a severance package to let him go is much smaller.
A few years back, prominent corporate CEOs who resigned over similar issues included Mark Hurd resigning as HP CEO in 2010 due to a relationship with a stakeholder; or Christopher E. Kubasik resigning in 2012 due to a relationship with a subordinate Served as CEO of Lockheed Martin.
The extent to which a personal scandal is a business issue depends on the extent of the damage. When Kezaich left Intel, he faced accusations of poor transformation; Easterbrook left McDonald’s with consecutive quarterly lower-than-expected quarterly results and conflicts with franchisees over digital transformation.
This may also explain why a series of moral charges have not shaken Musk’s position at Tesla and SpaceX. He is still the most powerful person in the company – even though he only controls about 20% of Tesla – but as the company’s CEO, product manager, KOL… Tesla can’t do without him. At least he and the board thought so. (Gong Fangyi)
Monkeypox is now on the same level as Covid-19
On July 23, WHO Director-General Tedros Adhanom Ghebreyesus announced that the monkeypox outbreak, which has spread in 75 countries, constitutes a “public health emergency of international concern” – the highest level of public health emergency that the World Health Organization can issue. Health alert. The last time it was listed was the global outbreak of COVID-19 in January 2020.
- There was no consensus among WHO experts that the monkeypox outbreak constituted a “public health emergency of international concern” (nine members were against, six were in favor), but Tedros believed it was necessary to raise this level to cause attention of the international community.
- More than 16,000 monkeypox infections and five deaths have been reported in 75 countries and territories, according to the World Health Organization on July 23. According to the World Health Organization, Europe is a high-risk region, and other regions are at moderate risk.
Monkeypox is a zoonotic infectious disease that spreads from animals (not necessarily monkeys) to humans. The virus was first detected in laboratory monkeys in Denmark in 1958. The monkeypox virus was found in a child in 1970 during a general vaccination against smallpox in the Democratic Republic of Congo. Since then, monkeypox has been endemic in West and Central African countries, and people who travel there are occasionally infected, but there have been no large outbreaks outside Africa.
In May of this year, the monkeypox virus first appeared localized in countries such as Europe and the Americas outside Africa, that is, most of the confirmed monkeypox cases had no travel history to West Africa or Central Africa. At the time, the World Health Organization said the number of (monkeypox) cases would increase, but a pandemic was unlikely. As things stand, they underestimate how fast the monkeypox virus is spreading.
Monkeypox is mainly transmitted through skin-to-skin contact, body fluids, respiratory droplets, or infected bedding. In addition, mother-to-child transmission and sexual transmission occur. The incubation period is usually 6 to 13 days.
- Tedros said that (monkeypox) is currently an outbreak concentrated among men who have sex with men, especially men with multiple sexual partners. He suggested using the right strategies in the right groups to stop the outbreak, but stressed vigilance against “stigma”.
There are not many drugs that specifically prevent and treat monkeypox. In January, tecovirimat, an antiviral drug used to treat smallpox, was approved for monkeypox. According to information compiled by the World Health Organization, some observational studies have shown that the smallpox vaccine is 85% effective in protecting against monkeypox. In 1980, after the smallpox virus was officially eliminated, the smallpox vaccine was stopped. China stopped in 1981, and people born after that were basically not vaccinated. In June, the National Health Commission of China issued the “Guidelines for Diagnosis and Treatment of Monkeypox”, saying that medical response should be done in advance. (He Qianming)
Apple’s official website sells iPhone at discount in China for the first time
Apple announced that from July 29 to August 1, 2022 (Apple Store online store from July 29 at 0:10 to August 1 at 23:59), for iPhone purchase users who meet the order conditions to give orders One-time discount of up to RMB 600 per product.
- Discounted products include iPhone 13 Pro Max, iPhone 13 Pro, iPhone 13, iPhone 13 mini, iPhone SE (3rd generation), iPhone 12, iPhone 12 mini, Apple Watch SE, AirPods (3rd generation) and AirPods Pro.
- Consumers need to pay with one of the following payment methods: Alipay, Huabei Installment (12-month installment only), China Merchants Bank (one-time payment or 12-month installment only), China Construction Bank (one-time payment only) or 12-month installment), Industrial and Commercial Bank of China (12-month installment only).
- During this year’s “618” event on JD.com, the iPhone 13 sold 2.8243 million units, more than 8 times that of the second place. (Gong Fangyi)
eBay, which once held 80% market share before Taobao, will shut down next month
If Amazon’s exit from China in 2019 marks the end of a 20-year trajectory, eBay is at least as a footnote – eBay announced that due to the company’s adjustment of its operating strategy, it has decided to close its website and cease operations on August 12.
eBay, which was founded in Shanghai in 1999, has been operating for 23 years and was once the only one. In the three years since its establishment, the number of registered users exceeded 3 million, while the number of Chinese netizens was less than 60 million at that time.
In 2003, eBay had an 80% market share in the e-commerce market. This year, Jack Ma came with three years of free Taobao. eBay started to fall from the top. In June 2003, eBay acquired eBay. eBay, which continued the parent company’s charging model, was beaten by Taobao and could not fight back.
- In 2005, Taobao’s market share reached 72.2%, while eBay and eBay only had 26.7%.
- According to data from iResearch, Taobao had a 95% share in the second quarter of 2012, while eBay’s share dropped to 0.01%, which is almost negligible.
- In 2016, eBay withdrew from China and TOM acquired eBay.
During this period, eBay has done overseas purchasing business (2010), but due to various reasons such as policy prospects and consumption habits have not yet been cultivated, the performance is average, and the follow-up is still unable to compete with cross-border e-commerce such as NetEase Koala and Tmall.
- Amazon, which entered China in 2004, closed its domestic e-commerce business in 2019, with a market share of only 0.6% before exit. Similar fate is also the consumer electronics e-commerce company Newegg, which has lost the competition with JD.com and will withdraw from China in 2020.
During the more than 20 years of development of Chinese e-commerce, there have been rises and departures. The competition between cross-border e-commerce and local enterprises is also the epitome of China’s business development. From traditional e-commerce represented by Taobao and JD.com, to social e-commerce such as Pinduoduo, to the newly added live-streaming e-commerce such as Douyin and Kuaishou, competition has never stopped. (Intern Zeng Xing)
IPO Weekly Report: A-share IPO fundraising rebounded this week
A-shares have at least 4 IPOs this week (July 25 to July 29), raising a total of about 3.9 billion yuan.
- Chuhuan Technology: The main business is to solve the environmental system problem of waste gas odor control, and the amount of funds raised is 460 million yuan.
- Jintuo Co., Ltd.: is an auto parts supplier, providing parts for vehicles such as Weyback and Hutchinson, with a total fund-raising of 445 million yuan.
- Yifang Bio: is an innovative drug research and development enterprise, focusing on major diseases such as tumors and metabolic diseases, with a total fundraising of 2.084 billion yuan.
- West Testing: It is engaged in inspection and testing technical services and consulting services such as environmental and reliability testing of military equipment and civil aircraft, electromagnetic compatibility testing, etc., with a total fund-raising of 912 million yuan.
US stocks have at least 2 IPOs this week.
- Mobile Global Esports: is a 2021 startup that is launching an esports platform.
- MAIA Biotechnology: is a clinical-stage biopharmaceutical company developing targeted immunotherapies for cancer. (intern Xue Yujie)
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OTHER NEWS
Local epidemics have been reported in many popular tourist areas across the country.
- On July 24, 101 new cases were confirmed in the mainland, 34 in Sichuan and 24 in Gansu; 579 new asymptomatic infections were reported in the mainland, including 284 in Gansu and 210 in Guangxi.
- Guangxi added “22+210”, and Beihai added “22+205”.
- Gansu added “24+284”, of which 9 cases were found through social screening.
- Lanzhou added “19+100”, and social screening found 7 cases.
- Nine cases of asymptomatic infection were found in Honghe Prefecture, Yunnan, all in Jinping County.
- Xinjiang, Chongqing, and Jiangsu each added 1 new case of asymptomatic infection.
“Diablo: Immortal” is launched on the Central App Store.
This mobile game, jointly produced by Blizzard Entertainment and NetEase, was released in 2018 and was launched overseas in June this year.
Great Wall Wey released a new car, named latte, subdivided into large cups and super large cups.
Self-owned car brands are increasingly eclectic in naming new cars. The new car of Great Wall’s Wey brand is named Latte. According to our incomplete statistics, the names of the registered models of the Great Wall series include:
- Haval series: Haval First Love, Haval Red Rabbit, Haval Big Dog, Haval Mythical Beast, Haval Milk Dog;
- Euler series: Euler Black Cat, Euler White Cat, Euler Good Cat, Lightning Cat, Ballet Cat, Punk Cat, Cherry Cat;
- Wey: Macchiato (VV5), Latte (VV6), Mocha (VV7);
- Pickup series: Great Wall Cannon, Off-Road Cannon, King Kong Cannon, Cannonball, Locomotive Cannon, Brigade Cannon;
- Only registered trademarks: jazz dragon, jade-faced dragon, thunder tiger, hip-hop tiger, whirlwind tiger, punk tiger, suit leopard, dress leopard, rock leopard, warrior leopard, cowboy leopard.
China Mobile announced the suspension of Fetion App.
China Mobile announced that it will stop Fetion services from September 30. In 2007, China Mobile launched the instant messaging service “Fetion”, with voice calls and text messages as its main means of communication. Around 2010, the Fetion App, with the advantages of SMS discounts and free exchange of messages between mobile and PC, had nearly 500 million registered users and nearly 100 million active users during peak periods. With the development of smart phones and mobile Internet, Fetion is gradually eliminated.
In 2021, the national medical insurance fund will generate 2.88 trillion yuan in revenue and 2.4 trillion yuan in expenditure.
In response to some netizens claiming that “the local government has removed some drugs from the medical insurance catalogue because the medical insurance fund is not enough”, the relevant person in charge of the National Medical Insurance Bureau responded that in 2021, the national basic medical insurance fund (including maternity insurance) will generate 2.88 trillion yuan in revenue. Expenditures were 2.4 trillion yuan, and the balance of payments was generally balanced, with a slight surplus. Earlier, the Beijing Municipal Medical Insurance Bureau announced that 141 non-national medical insurance drug catalogues, such as cefonicid injection, will be removed from the city’s medical insurance drug catalogue.
Dongxihu District of Wuhan City gave 150,000 yuan in advance to public officials who bought houses.
Recently, the Dongxihu District Finance Bureau of Wuhan City issued a notice on the “Plan for Monetizing Subsidies for Housing Distribution in Advance”. Buying a house can receive a one-time pre-issued house purchase subsidy of 150,000 yuan, and the subsidy will be deducted from the income in the next 5 years.
The outage of Zhengbang Technology’s surrogate households may affect its revenue of 8 billion yuan in the second half of the year.
In many places of Zhengbang Technology, pig farmers have encountered problems such as loss of feed, difficulty in settlement, and difficulty in refunding deposits. Under the “company + farmer” cooperative breeding model, Zhengbang Technology provides piglets, feed, etc., while the farmer is responsible for the fattening and feeding of live pigs. In 2021, the surrogate farmers will provide Zhengbang Technology with 5,970,700 slaughter heads, and the outage may affect the company’s revenue of about 8 billion yuan in the second half of the year. Zhengbang Technology responded that funds have been relatively tight recently, due to problems such as logistics distribution and insufficient coordination of feed factories, resulting in occasional feed cuts. “Securities Times” said that in some places “pigs eat pigs”.
The Supreme People’s Court will increase the penalties for tax evasion and other behaviors of high-net-worth individuals in the cultural and tourism sector.
On July 25, the Supreme People’s Court issued the “Opinions of the Supreme People’s Court on Providing Judicial Services and Guarantee for Accelerating the Construction of a National Unified Market”, which pointed out that illegal and criminal acts such as tax evasion, tax resistance and tax fraud should be punished according to law, and the use of “yin and yang” should be strengthened. “Contract” tax evasion, high net worth individuals in the entertainment industry (net assets of more than 10 million yuan) tax evasion and other acts of punishment. In the past year, tax evasion cases of such groups in the entertainment industry have occurred frequently, and more than 1.9 billion yuan in taxes have been checked and made up.
The central bank announced that it will strengthen digital yuan legislation to ensure controllable anonymity.
On July 24, Mu Changchun, director of the Digital Currency Research Institute of the People’s Bank of China, said that the digital renminbi will continue to improve the top-level system design, enhance risk prevention and control capabilities, and ensure that the digital renminbi is controllable and anonymous. The specific arrangements include establishing an information isolation mechanism, clarifying the legal conditions for digital wallet inquiry, freezing, and deduction, establishing a corresponding penalty mechanism, and improving digital renminbi anti-money laundering, anti-terrorist financing and other legal systems.
Power Semiconductor said that there is no price reduction plan for wafer foundries with mature processes.
According to media reports, the production capacity of the foundry’s mature process (above 28 nanometers) has been loosened, and the foundry has ushered in a wave of price cuts. Power Semiconductor, one of the three major wafer foundries in Taiwan, responded that the company is continuing to adjust its product mix and has no plans to cut prices. UMC and World Advanced Corporation said they are currently in a period of quiet financial reporting and do not comment on market rumors about price dynamics.
The Central Bank and the Ministry of Culture and Tourism have introduced six measures to support the cultural and tourism industry.
On July 25, the Central Bank and the Ministry of Culture and Tourism issued the “Notice on Financial Support for the Recovery and Development of the Culture and Tourism Industry”, and introduced six measures to improve financial services for the culture and tourism industry, including further expanding the financing channels of cultural and tourism enterprises, improving Credit supply system, etc., to promote the recovery and development of the cultural and tourism industries as soon as possible.
Tesla plans to open up its charging network to non-Tesla users.
According to media reports, Tesla is applying for public funding to build electric vehicle charging stations, but to gain approval would need to open parts of its U.S. Supercharger network to other electric vehicle makers. It is reported that Tesla will begin production of new Supercharger equipment by the end of the year, enabling non-Tesla electric vehicle drivers in North America to use the company’s Supercharger stations.
Hong Kong, China plans to reduce the hotel quarantine period to four or five days.
The Hong Kong SAR government plans to launch the relaxation of entry hotel quarantine and the “red and yellow code” measures at the same time, and is currently considering two plans to relax the 7-day hotel quarantine for overseas arrivals, namely the 5-day hotel quarantine and the 2-day yellow code restriction plan, and The 4-day hotel quarantine and the 3-day yellow code restriction plan are expected to be finalized in 1 to 2 weeks.
Kangtai Bio’s net profit in the first half of the year is expected to drop by more than 60%.
Kangtai Bio released a performance forecast saying that the company’s revenue in the first half of this year is expected to be 1.828 billion yuan, a year-on-year increase of 73.72%. It is expected that the net profit will not exceed 130 million yuan, a year-on-year decrease of over 60%. Kangtai Bio said that since the second quarter, the domestic and international new crown vaccine vaccination environment has undergone major changes, the demand for new crown vaccines has declined rapidly, and the company’s new crown vaccine sales have declined rapidly.
Twitter lost $270 million in the second quarter, with ad revenue up just 2%.
Management blamed the poor performance on the impact of Musk’s acquisition and a contraction in overall demand from advertisers, who raked in only about $1.08 billion in ad revenue in the second quarter. Snap, which is more popular among young people, generated $1.1 billion in advertising revenue during the same period, up 13% year-on-year.
French satellite company Eutelsat is preparing to buy its British rival OneWeb.
It is reported that OneWeb was valued at $3.4 billion in the latest round of financing, and Eutelsat already holds a 23% stake in OneWeb and is its second largest shareholder. Eutelsat mainly operates satellites for the government and some TV broadcasters. The merger of the two companies will strengthen its low-orbit satellite Internet competition and may challenge Elon Musk’s SpaceX’s Starlink network and Amazon’s Project Kuiper business.
Text | Gong Fangyi Intern Zeng Xing He Ganming Intern Xue Yujie
Editor | Gong Fangyi
The title picture comes from the TV series “The Suit Lawyer”
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