Making sure CEOs are looked after

Sonic Automotive which operates 95 U.S. car dealerships, started laying off and furloughing about a third of its workforce as the coronavirus pandemic crushed its sales. Then it changed its executives’ pay packages – handing them a multimillion-dollar windfall. On April 10, Sonic’s board gave its top executives stock options to replace performance-based share awards. The options it gave Chief Executive David Smith, whose family controls the company, are now worth about $5.16 million – more than four times the value of the performance-based stock awards he got last year. Sonic’s terminated employees, meanwhile, face hard times. 



Sonic is one of six U.S. companies identified in a Reuters review of regulatory filings that have moved to shield their executives’ compensation from the pandemic’s economic fallout as they laid off or furloughed workers. The others include plush toy seller Build-A-Bear Workshop, restaurant operator Red Robin Gourmet Burgers, retailer Signet Jewelers, fashion brand DKNY owner G-III Apparel Group and fracking sand producer Covia Holdings. Reuters found 75 other companies that disclosed they are considering changes to executive pay plans in light of the pandemic’s impact on their businesses. Among them are ridesharing giant Uber Technologies, hotel operator Hilton Worldwide Holdings, carrier Delta Air Lines, satellite radio company Sirius XM Holdings and Thomson Reuters, the parent company of Reuters News. 



Sirius XM said it “may be prudent” to change executive pay terms to ensure it can attract and retain “senior management talent.” Delta said in a filing that its performance measures no longer suited the “current reality” and that the value of executives’ incentive pay had declined by more than half in the pandemic. G-III and Signet said the changes were needed to retain management talent, while Build-A-Bear said the moves aligned the interests of executives with shareholders. Build-A-Bear, which sells customized stuffed animals, announced a 20% executive salary reduction in March as it furloughed more than 90% of its 4,300 workers. That translated to a cut of $142,800 from the $714,000 salary of CEO Sharon John. Two weeks later, however, the company granted its top management stock grants of roughly equivalent value to the salary cuts.  



Covia, Red Robin, Uber and Hilton said in filings that uncertainty arising from the pandemic caused them to revisit performance pay. Thomson Reuters said in a filing that it had approved executive performance targets in February and early March without the benefit of being able to consider the pandemic’s impact on its business.



More than 500 companies in the Russell 3000 index have announced cuts to the base salaries of their chief executives, to save money or show they are sharing workers’ pain, according to compensation consultant Semler Brossy. Base salaries, however, account for only a tenth of the median pay of chief executives at the largest 500 U.S. companies, according to research firm Equilar. They earn the bulk of their compensation through stock awards.



 https://www.reuters.com/article/us-health-coronavirus-ceopay-insight/u-s-firms-shield-ceo-pay-as-pandemic-hits-workers-investors-idUSKBN2341N9

Climate change is a killer

A new study has found “substantial underreporting” in the numbers of deaths caused by environmental crises.
Dr Arnagretta Hunter, of ANU Medical School who co-authored the study, said in a statement: “Climate change is a killer, but we don’t acknowledge it on death certificates. If you have an asthma attack and die during heavy smoke exposure from bushfires, the death certificate should include that information. We can make a diagnosis of disease like coronavirus, but we are less literate in environmental determinants like hot weather or bushfire smoke.”



The research, published in journal The Lancet Planetary Health this month, revealed that over the past 11 years, the number of deaths attributed to excessive natural heat is at least 50 times greater than is recorded on death certificates in Australia.





During that time some 340 deaths in Australia were recorded as excessive heat but experts from The Australian National University (ANU) found that 36,765 could be attributed to the environmental conditions, following statistical analysis. The study indicates that the heat-related mortality rate in Australia is actually around 2 per cent.

https://www.independent.co.uk/environment/climate-change-deaths-kill-records-wildfires-a9533536.html





Brazil’s Callous COVID-19 Attitude

Julio Croda, an epidemiologist who used to head Brazil’s health ministry’s department of immunization and transmissible diseases, said he encountered a lack of urgency from the government when his department predicted that the elderly would bear the brunt of the coronavirus.

Croda reported that when informed that older people would be more likely to die from the disease, Solange Vieira, who leads the Superintendence of Private Insurance, linked to the country’s finance ministry and who helped reform the country’s pensions, said:
 “It’s good that deaths are concentrated among the old. That will improve our economic performance as it will reduce our pension deficit.” 



Blaming People for the Pandemic



Socialists even from environmentalists and progressives frequently get challenged with the concept of over-population, a view of the world that we always try to refute. Fortunately, there are some who share our ideas that population in itself is not the problem. It is worth while linking to and quoting from this article on the Dissident Voice website that contests the claims that the present pandemic can be blamed on over-population.



“…So, what is the connection between population and pandemic? Employing what he calls “root cause analysis,” Mr. Judge conflates “overpopulation” with “overcrowding.” The overcrowding he is concerned about is that found in “urban slums,” which he specifically cites in the article. That is, the overcrowding of poor people who cannot afford to live in what he calls the “sparsely populated areas.”



…Let’s test Mr. Judge’s hypothesis regarding the relationship between density of population and response to the pandemic. Take Belgium, where Mr. Judge lives. After the mini-state of San Marino, Belgium has the unfortunate distinction of having the highest COVID-19 death rate in the world at 82 deaths per 1000 people. Its population density is 974 people per square mile. In comparison, Singapore and Hong Kong are the two most densely populated territories in the world with 20,455 and 17,565 people/mi2 respectively, after the mini-territories of Macau and Monaco. Their death rates are only 23 and 4 per 1000 population, respectively. That is, Belgium has over 20 times the death rate of Hong Kong, while Hong Kong’s population density is over 18 times that of Belgium…



Consistent with those who espouse the overpopulation thesis, Mr. Judge yearns for an idyllic past when the planet was not as overrun by humans, say,- the Middle Ages. Since the 1300s, the world’s population has increased over 17-fold. But that much smaller population did not prevent the Black Death pandemic from taking an estimated 75-200 million lives back then…



In short, blaming the condition of humanity for pandemics is not supported by the facts. Densely populated places have succeeded well in containing COVID-19, while there have been far more devastating pandemics than the one we are suffering now, when there were far fewer of us on the planet. Overpopulation ideology, as represented by Mr. Judge’s article, conflates overcrowding with overpopulation…
. Mr. Judge’s sophistry and my critique are not new. Two hundred years ago, Karl Marx made a similar criticism of Thomas Malthus’ contention that the world was overpopulated. Malthus opposed the English Poor Laws because they relieved human suffering and thus encouraged poor people to reproduce. Malthus’ theory was a retrograde response to the French Revolution and the rise of the working class. Overpopulation ideology is misanthropic and reactionary in its origins and its modern expression. Mr. Judge’s article is silent about our political system or economic order; it’s simply that there are too many people. Aside from being wrong, it begs the question, which people?
The objection to overpopulation ideology is not just an intellectual one, but whether such an ideological framework promotes solutions. The ideology of overpopulation poses the wrong causes while obscuring the right solutions.
World population growth rates are precipitously declining and on a trajectory to stabilize this century, with the current rate at 1%. 
Meanwhile resource consumption continues to increase at a rate of 6 to 7%. Clearly, something beyond simple demographics are at play, and that is what overpopulation ideology obfuscates. The relations of power call to be addressed in our quest of a better world. And this is precisely what the ideology of overpopulation obscures to the benefit of the powerful few and to the detriment of the multitude of humanity.

Roger D. Harris is with the human rights organization Task Force on the Americas,

American Poverty

A poll released by the U.S. Census Bureau this week revealed that at least nine million American households that include children are unsure whether they’ll be able to access enough food in the next four weeks and more than 18 million are only “somewhat confident” about their food security with millions more are experiencing housing insecurity during the coronavirus pandemic.



https://www.commondreams.org/news/2020/05/29/least-9-million-us-households-children-are-not-all-confident-theyll-be-able-afford

Will Things Change?






40.7 million Americans have lost their jobs over just the past 10 weeks as mass layoffs induced by the coronavirus pandemic continue. More than 100,000 people have died of Covid-19 in the United States.



Currently, there are 16 more billionaires than there were in mid-March.



According to a new analysis by the Institute for Policy Studies (IPS), the combined net worth of America’s billionaires soared by nearly half a trillion dollars, bringing their total wealth to $3.4 trillion. IPS, which has been publishing weekly updates on billionaire “pandemic profiteering,” found that the combined net worth of U.S. billionaires grew by $485 billion between March 18 and May 28, an increase of 16.5%.



Amazon CEO Jeff Bezos and Facebook CEO Mark Zuckerberg saw their combined wealth soar by $63 billion over the last 10 weeks.



It said, “This is a grotesque indicator of the deep inequalities in U.S. society,” adding,  “This isn’t just unsustainable, it’s unconscionable.”




Let off the hook

Ten corporations that agreed to a total of $56m in civil penalties for allegedly breaking environmental laws are not being required to make payments under a pause granted by the US government during the Covid-19 pandemic. They signed settlements with the government agreeing to pay fines without admitting liability but the justice department last month advised most of the companies of extensions.

One company, Virginia power provider Dominion Energy, settled and agreed to pay $1.4m for allegedly releasing 27.5m gallons of water from a coal ash impoundment that seeped into groundwater along the shore of the James River. Coal ash contains dangerous pollutants, including mercury, cadmium and arsenic, which can cause widespread environmental damage. The company said it plans to pay the settlement penalty once it is finalized.

Dominion has a number of ties to high-ranking Trump officials, including EPA’s former top enforcement official, Patrick Traylor, who had Dominion has a client. Attorney general William Barr has served on the company’s board of directors and received more than $500,000 from Dominion.

Another  violator, one of the world’s largest steel companies, ArcelorMittal’schief executive was at a Trump roundtable of business leaders in India in February and also was one of about 20 executives to dine with Trump in Davos at the World Economic Forum in January. Trump’s commerce secretary Wilbur Ross was previously on the company’s board of directors.

Denver-based oil and gas company K P Kauffman allegedly violated air pollution laws, emitting volatile organic compounds that form smog in the Denver-Julesburg Basin. KP Kauffman spent $200,000 lobbying the Environmental Protection Agency (EPA) in 2019 and the beginning of 2020, according to the Center for Responsive Politics. In 2016, the company hosted a meeting between oil industry executives and president Donald Trump. CEO Kevin P Kauffman is a major GOP donor.

Chris Saeger, director of strategic initiatives at Accountable.US, said:

“When we’re facing a public health crisis that causes respiratory problems, this is a time to be holding companies to a higher standard of air quality, not a lower one.”



Ecuador and Inequality

Ecuador’s coastal city of Guayaquil has been one of the hardest-hit areas of COVID-19 in Latin America. Last month, photos of dead bodies lying in the streets or on park benches flooded social media, showing the collapse of the local healthcare and mortuary systems.  Human rights workers say the virus has highlighted the city’s vast social inequalities, and has disproportionately affected working-class families. Many of these families now find themselves jobless, turned away from saturated public hospitals, facing inflated costs of medication and mortuary services, and having to adapt to a quarantine they cannot afford.  Ecuador’s strict quarantine measures have weighed particularly heavily on these families in Guayaquil. Like most places in the world, lockdown measures include social distancing and the prohibition of all non-essential businesses, but it also includes a strict 2pm curfew, enforced by military and police, that has been in effect since mid-March. The coronavirus has also disproportionately affected African descendent communities in Guayaquil, which has the largest Black population of any city in Ecuador. Most in this community are informal workers who live in the same marginalised areas that were harshly affected. Those most affected by these hospital conditions have been the marginalised urban sectors, where families survive off of their daily income so have been unable to maintain quarantine.



According to official figures, there were 37,355 confirmed coronavirus cases and 3,203 COVID-19-linked deaths in Ecuador as of Monday, but many say the numbers are drastically underreported. Last month, the state registry released data showing that over 10,000 deaths were recorded for the months of March and April, just for the province of Guayas, where Guayaquil is located. Officials say this is nearly 6,000 more deaths than the same time period in the last two years, leading many to conclude that the vast majority are COVID-19 related. They also include deaths that could have been prevented had the healthcare system not collapsed under the weight of COVID-19, yet no data exists to make this differentiation.



Some of these neighbourhoods include Monte Sinai, Bastion Popular, Suburbio, and Trinitaria in the northern and southern peripheries of the city. Many of these communities do not have access to basic services like sewage systems or drinking water, and have high population densities. These provide the perfect conditions for a virus to spread, Billy Navarrete, director of the Committee for the Defense of Human Rights in Guayaquil, said.



“I don’t agree with the government who always blames the people for not staying at home. You can stay at home when you have your necessities met, and savings in the bank,” said Giselle Viteri Cevallos, with the local organisation Asphalt Women (Mujeres de Asfalto) that promotes the rights of women of African descendent.



Luis Alfonso Saltos, architect and urban planner in Guayaquil, said people who live in peripheral regions that lack infrastructure would inevitably end up being more exposed to the virus, and carrying it greater distances, as they are forced to leave their home or neighbourhood to find basic necessities.



“Understand citizen logic. If you don’t have water in your house or a store nearby, that obliges you to have to leave and find it,” Saltos said. 

Saltos collated reports left by families on social media platforms, begging for help to remove the cadavers of their loved ones from their homes and produced a map. The map indicates that the vast majority of these reports came from either the city centre, where there was a large flow of people, or in the peripheral areas in the north of the city, where there are higher population densities and lack of infrastructure, he said. Although this data is not conclusive, it provides an idea of the dynamics of the virus, he added. 



Despite being the commercial capital of Ecuador, Guayaquil is one of the most unequal cities in the country. It has the highest poverty rate, at 14 percent, and the highest rate of workers in the informal economy. Nearly half of the working population in the city work in the informal sector, according to the national statistics institute. The informal sector includes jobs like street vendors and domestic workers, those who live off their daily wages with no social security benefits, and earn well below the national minimum wage of $400 per month.



Ecuador has a three-tier healthcare system, which includes public hospitals that serve everyone; social security hospitals, generally for people with permanent jobs who pay into the system; and private clinics. 



Ricardo Ramirez Aguirre, a retired physician in Guayaquil and head of a regional Anti-Corruption Commission, said the public and social security hospitals in the coastal city have shown “improper handling” of the COVID-19 crisis. Several people have reported hospitals turning away non-COVID-19 patients, leaving them with nowhere to go. Others reported that hospitals not designated to treat coronavirus were turning away patients with dengue thinking it was COVID-19.

President Lenin Moreno reportedly cut nearly 4,000 jobs in the healthcare sector nationwide last year. During the pandemic, the government also failed to provide protective gear to hospitals or assure long term job security for new recruits, so many healthcare workers refused to fill necessary positions, said Ramirez. At least 117 doctors and nurses lost their lives while treating COVID-19 infections in the province of Guayas alone, according to local unions.



Apart from saturated hospitals, one of the biggest struggles for families is paying for medication and mortuary services, as high demand has shot up prices. Paracetamol that normally costs $0.25 a pill can no longer be found in pharmacies, but is being sold for $4.00 in informal commercial areas, said Viteri. Some families have also been forced to go into debt, as they try to pay the high costs of a coffin and cemetery plot, which could range from $3,000 to $5,000, for their deceased family members. 



https://www.aljazeera.com/indepth/features/coronavirus-pandemic-exposes-inequality-ecuador-guayaquil-200527151935203.html

The Sino-India Stand-off

Shortly after China built a road near the Doklam or Donglang plateau and valley claimed by both the People’s Republic and Bhutan, a tiny Himalayan kingdom, India began paving a road near the disputed Pangong Tso Lake in Ladakh, a move Chinese state media has warned could provoke a conflict. 



Since the beginning of May several aggressive incidents have taken place in Eastern Ladakh. India and China both claim territory along the Himalayas. Their border dispute goes back decades.


Nationalist posturing adopted by both nations have soured relations. Xi called on his military to step up its combat preparedness. Modi reportedly met with top military and security officials over the situation at the border with China. High-level Indian and Chinese military commanders have met at designated points along the LAC (line of actual control) on May 22nd and May 23rd to defuse the current situation in Eastern Ladakh.



The rewards of being a CEO

The typical pay package for CEOs at the biggest U.S. companies topped $12.3 million last year, and the gap between the boss and their workforces widened further,



Median pay for CEOs in the survey climbed 4.1% last year. For the typical worker at their companies, it rose 3.2%. It would take two lifetimes for the typical employee at most S&P 500 companies to make what their CEO did, or 169 years, according to data.



CEOs in the AP’s survey had a median compensation valued at $12.3 million last year, which means half made more and half made less. Besides salary and cash bonuses, that includes stock awards and option grants that CEOs will get the full value of only if the company’s stock price rises in the future. In many cases, big chunks of the compensation were for stock and options that companies granted their CEOs in 2019 for their performance in 2018 and earlier years. 





For the first time since the AP’s annual pay survey began in 2011, a woman is at the top of the list: Lisa Su of Advanced Micro Devices. She had compensation valued at $58.5 million. CEOs such as Alphabet’s Sundar Pichai and Intel’s Robert Swan had packages that were valued even higher that Su’s, but were excluded because the AP’s survey looks only at S&P 500 bosses who have been in the job for at least two years, in part to avoid distortions caused by sign-on bonuses. (The AP’s compensation study included pay data for 329 CEOs at S&P 500 companies who have served at least two full fiscal years at their companies, which filed proxy statements between Jan. 1 and April 30.)



The 4.1% rise in median pay was a slowdown for S&P 500 CEOs, who had seen their pay jump 7.2% the year before and by even more in earlier years. Much of the slowdown was because of a drop in how much cash the CEOs got for hitting various performance targets.  At Eastman Chemical, for example, the value of CEO Mark Costa’s compensation dropped 11% to $14 million last year, according to the survey, in part because he fell short in some performance metrics set by the board of directors. Eastman’s board said Costa exceeded the goals set for “growth and innovation” in 2019, but he only partially met the targets for how much cash the company generated, as well as for employee safety and other measures. He received $377,000 in what the company calls its “unit performance plan,” down from the $1.5 million he got from the plan a year earlier. 



A CEO’s salary, though, typically makes up less than 10% of total compensation each year. What will hit CEOs’ pocketbooks more is what happens to companies’ share prices, which will affect the value of stock and options they were already granted, as well as the bonuses they would have been in line for. 



”The risk is that if there is a strong rebound in the market, that could lead to windfall profits for executives,” said Borrus of the Council of Institutional Investors, which represents pension funds and other big investors. 



https://apnews.com/13827540beb28669fa7847de43b52ac4