DealBook Briefing: May Tech Change the Senate Tax Bill?

It may not be so very bad: Lots of critics of Silicon Valley’s current pay system say that the stock-heavy model hurts some employees, like those diluted by down rounds, or wiped out if a start-up fails. Anand Sandwal of CB Insights thought to Wired of the potential switch: “Which means the types of start-ups getting made would change as well. Based on your perspective, that could be a good or bad thing.”


Today’s DealBook briefing was written by Andrew Ross Sorkin in NY, and Michael J. de la Merced and Amie Tsang in London.


The DealBook special section: navigating an uncertain world.

Tying in themes touched on in our conference previous week, here are some of the ways businesses are trying to future-evidence themselves:

• Target and different big retailers haven’t given up on brick-and-mortar stores just yet.

• The airline industry’s response to customers employing cameras on flights might be for air travel attendants to employ cameras too.

• Could it be time for companies paid us for employing our personal data?

• Five systems that could switch the world.

Read all of our special section insurance on DealBook.

How much time will investors provide G.E.’s new chief?

Simply look at G.E.’s stock effectiveness yesterday, after the business unveiled its big turnaround approach and dividend cut:


Here’s what Janna Sampson of OakBrook Investments advised the WSJ:

“If that is whatever you were going to say, why did we need to hold out from July until November?”

G.E.’s leader, John Flannery, said that he wasn’t amazed by the price move. But he asked for more time to carefully turn around a business whose shares possess fallen 38 percent over the past 12 months. “That is the chance of an eternity to reinvent an iconic business,” he told investors at a demonstration yesterday.

Who might have a lot more say right now: Ed Lawn of Trian Fund Control, who took a board seat at the conglomerate after pushing for change. He will stay put throughout a planned culling where the number of board seats will be lowered by a third, to 12.

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Critics’ corner

• Brooke Sutherland of Bloomberg Gadfly argues, “General Electric Co. may possess a new leader, but the pattern of over-promising and under-delivering may be the same.” (Gadfly)

• Rob Cox of Breakingviews asserts, “The about-encounter from Mr. Immelt to Mr. Flannery features outdone the usual kitchen-sinking that accompanies the passing in one chief executive to another.” (Breakingviews)

• Charley Grant of Observed on the road writes, “The difference here’s that Mr. Flannery features laid out a clear plan by which investors can judge his improvement. He will need to proceed quickly, though, while maintaining a delicate touch.” (WSJ)

The Washington roundup

• President Trump has a suggestion to pay for a $1.5 trillion tax cut – repealing the Affordable Care Act’s mandate that many people have health insurance. (Politico)

• President Trump nominated Alex M. Azar II, the former president of Eli Lilly, to become secretary of health and human services, a role with responsibility for regulating the pharmaceutical sector. (WaPo)

• The hasty drafting of the home and Senate tax programs has resulted in some very interesting loopholes. (NYT)

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• Some 1,500 former Capitol Hill aides possess signed an available letter to House and Senate leaders demanding that Congress bring in mandatory harassment training and revamp any office of Compliance. (NYT)

Sexual harassment claims prompt Steve Jurvetson’s exit.

In departing Draper Fisher Jurvetson amid the firm’s investigation into his conduct with females, Mr. Jurvetson has become one of the primary names in Silicon Valley to become swept up in tech’s self-evaluation of how females are treated. He in addition has taken a leave of absence from the boards of Tesla and SpaceX.

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This is Mr. Jurvetson’s tweet about his move:


The context: From Sheelah Kolhatkar of The New Yorker:

“I think that every major technology company should be concerned at this time. We’ve reached a tipping point,” Kelly Dermody, a lawyer who is working on the cases against Microsoft and Google, explained.

In different sexual harassment news

• Two independent directors at the Weinstein Organization said they didn’t know that David Boies acquired a business relationship with the business while he was negotiating a agreement on Harvey Weinstein’s behalf. (WSJ)

• Goldman Sachs has written down the worthiness of its stake in the Weinstein Organization to zero, according to a person acquainted with the matter. (Reuters)


Amazon’s China deal highlights tech’s limits.

Amazon said that it had sold the physical gear for its Chinese cloud organization to its partner there to comply with new data laws. While Jeff Bezos’s business isn’t leaving China completely – it will still contain the intellectual real estate for the business – the move highlights the hurdles that Western tech companies face there.

From the WSJ:

Amazon and different U.S. companies here, including Apple Inc., have confronted increased pressure in recent months when confronted with the Chinese government’s desire to control cyberspace. In July, Apple said it could begin storing cloud data for its Chinese clients on a server run by a government-owned business, to comply with Chinese law.


The brave ” new world ” of digital medicine.

Think about the implications – in overall health, in policy and running a business – of the newly F.D.A.-approved digital pill, which has a sensor that can tell doctors whether, so when, individuals take their medicine.

Pam Belluck of the NYT notes some possible effects:

The technology could potentially be used to monitor whether post-surgical patients took too much opioid medication or clinical trial participants properly took drugs being tested. Insurers might gradually give people incentives to use them, like discounts on co-repayments, explained Dr. Eric Topol, director of Scripps Translational Science Institute, adding that ethical issues could come up if the technology was “so many incentivized that it’s practically is similar to coercion.”

Revolving Door

• Anheuser-Busch InBev called Michael Doukeris as brain of its American operations, as it struggles with slowing sales of mainstay brands like Bud Light. (WSJ)

• Apollo Global Control promoted Scott Kleinman and James Zelter to the recently produced positions of co-presidents, placing them up as potential successors to the firm’s co-founders. (FT)

• Irene Rosenfeld, who’s getting ready to stage down as Mondelez’s C.E.O. in a few days, reflects on a career spent building Kraft up – and then breaking it apart. (NYT)

The Speed Read

• If its organized takeover of Period Warner goes to a trial, In&T intends to require the communications between your White House and the Justice Department about the offer, according to people acquainted with the matter. (Bloomberg)

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• Goldman Sachs expense bankers will be targeting smaller companies sometimes neglected by Wall Street’s white-shoe advisers. (Bloomberg)

• Missouri’s legal professional general has opened a study into whether Google’s organization procedures violate the state’s buyer protection and antitrust laws. (NYT)

• A Tesla employee who is suing the business has explained that its black workers suffer serious and pervasive harassment. (Bloomberg)

• Elliott Management provides amassed a stake in the mall owner Taubman Centers and programs to push for alterations, including a potential sales, according to persons familiar with the problem. (Bloomberg)

• An investment firm backed by a good Chinese tycoon, Zhongwang USA, has called off its organized acquisition of the lightweight aluminum maker Aleris after it didn’t get Cfius backing. (Reuters)

• The private equity firm Roark Capital Group manufactured a takeover bid worthy of a lot more than $2.3 billion for Buffalo Wild Wings, according to persons familiar with the problem. (WSJ)

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