Here is this week’s edition of the CxO newsletter, which every Tuesday brings leaders the news, analysis and advice they need to navigate the ever changing corporate world. Click here to get on the newsletter list.
H
ello, and welcome to another edition of the CxO newsletter.
Love drama? Turn off Netflix and tune into the boardrooms of corporate America’s biggest businesses—or, more specifically, that of Twitter.
This isn’t the first time the social network has found itself attempting to thwart a takeover. Over the course of the past two decades, it’s entertained offers from Yahoo, Facebook, Google and Disney. Each has come amid turmoil or turnover.
“All of the acquisition events for Twitter have always been around other board drama or changes in CEO leadership, like, you know, the one that’s happening now,” Jason Goldman, a founding executive at Twitter, tells my colleague Abram Brown. Goldman spent nearly a decade on Twitter’s board and was there for the Yahoo, Facebook and Google bids.
Though Elon Musk’s offer comes amid these same circumstances—Parag Agrawal succeeded cofounder and twice-former CEO Jack Dorsey in November—it is unique for a few reasons, reports Brown, not only because of his immense wealth, but because he’s weaponized the product he wants to purchase. And, of course, Musk is like no other.
Just look to (recent) history: In March 2020 activist investor Elliott Management announced it had purchased 4% of Twitter shares. Following a series of meetings, Twitter handed Elliott an olive branch: a seat on the board, and an agreement to raise user and revenue growth goals.
Sound familiar? This is the same strategy Twitter tried on Musk—only this time the olive branch was rebuffed, publicly, on its own platform. And when the Tesla CEO made an offer, one he thought the social network couldn’t, wouldn’t refuse—roughly $43 million to take the company private—Twitter adopted a poison pill.
No matter who makes the next move, and what the next move may be, one thing is clear: Twitter needs a changemaker. Musk sees himself fulfilling this role, as do many of his followers. Agrawal would do well to establish himself in this light, as the leader Twitter needs to finally marry commercial potential and cultural power. And he’ll need more than a 280-character statement to do it.
What’s Next
Board Diversity Hits A Speed Bump: One of California’s two board diversity laws was struck down earlier this month, leaving publicly traded companies in limbo, and the fate of similar rules unclear. The law, which went into effect in 2020 and required public companies based in the Golden State to include on their boards directors from underrepresented racial and ethnic backgrounds, as well as those who identify as gay, lesbian, bisexual or transgender, had been challenged as unconstitutional before being invalidated for violating the state constitution. Now, questions abound. Will California appeal the ruling? What might this mean for the state’s other diversity law, enacted in 2018, which set out to assure the appointment of women to the boards of California’s publicly traded companies? (For more on the 2018 and 2020 laws, read this explainer from Kim Elsesser, a senior contributor to Forbes.) And will this ruling have any effect on the challenges facing Nasdaq’s new board diversity requirements? In his latest piece, Forbes’ Michael Peregrine suggests that boards stop waiting for answers and start establishing diversity goals of their own by taking four steps.
Lights, Camera, Engagement: Do you perceive employees who stay off-camera during video meetings as being less engaged than their on-camera counterparts? If so, you’re not alone: 92% of respondents to a recent survey of 200 U.S. executives conducted by software firm Vyopta say workers who don’t turn on their cameras, or are often on mute, don’t have long-term futures with their companies. What’s more, 93% believe those whose cameras are off are less engaged in their work, with 40% even suspecting that they’re browsing the internet or social media. And yet, nearly half of respondents admit that employers aren’t doing enough to engage employees, this as corporate America contends with how to recruit and retain talent amid the Great Resignation. If you expect employees to be on-camera during video meetings, take care to communicate it regularly, advises communications expert Edward Segal. And remember: On-the-job activity isn’t necessarily an accurate measure of productivity. Read more about that and other productivity myths in seven-time CIO Mark Settle’s latest piece for Forbes.
State Of The Union: A pro-union vote by some 2,600 Amazon warehouse workers in Staten Island, New York, has sent shock waves through corporate America. As my colleague Lauren Debter reports, employers across the country are concerned: If Amazon, a $1.5 trillion company, couldn’t keep employees from organizing—despite having spent a whopping $4.3 million on anti-union efforts last year alone—what are their odds? “It woke them up,” Rian Wathen, a consultant who helps companies avoid unionization, tells Debter. “I think people realized no one is safe anymore.” While bigger paychecks and better benefits often inspire union drives, work-life balance and input on company decisions can play a role, too. Read on for more on how the union victory at Amazon is affecting the broader business community.
By The Numbers
79%
The percentage of remote professionals who anticipate working fewer hours when they return to the office, according to a Korn Ferry survey of 430 U.S. adults conducted in late March. An overwhelming 97% of respondents say working from home allows them to spend what were once commuting hours on more productive tasks. Still not sure if remote work is right for your team? Here’s how to know if it’s helping (or hurting), and if hybrid might be a fit.
The CxO Profile
Ryan Breslow
Aaron Kotowski for ForbesMillennial Billionaire Ryan Breslow Created Buzz—And Enemies—Attacking Stripe And Shopify. He’s Just Getting Started.
Bolt’s Ryan Breslow has boosted the value of his fintech to the moon by promising an Amazon-style checkout to millions of online retailers. Now the newly minted billionaire is making a lot of noise—and powerful critics—challenging the tech industry’s culture. With an $11 billion valuation in the face of widespread skepticism, Breslow is determined to prove that Bolt is more than just a flash in the pan and that he’s more than just a lightning rod.
