Insider Weekly: Uber’s mass exodus – We found Larry Page – Exclusive salary database

Hello!

Welcome to this weekly roundup of stories from Insider. I’m Olivia Oran, filling in this week for Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

faang salary thumb 2x1

What’s trending this morning:


See how much Google, Netflix, and others pay

Insider compiled more than 250,000 salaries across more than 250 major companies, including Facebook, Amazon, Google and Lyft. Our new database is searchable by company and job title:

For a long time, sharing salary information has been a major taboo in America, which makes it difficult to know how much you should be getting paid.

To help prepare you for your next salary negotiation, Insider has created a searchable database of the last three years of salary disclosures, collected from the USCIS website, curated to a range of more than 250 companies that Insider reporters regularly cover.

The data is filterable by employer name, type of job, and job location, catching the differences between software engineers in Silicon Valley and Miami.

See the database here:

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Uber’s trying to address their high turnover rate

Uber CEO Dara Khosrowshahi is seen sitting on stage speaking during an event

Employees are leaving Uber so fast that executives had to have an all-hands meeting about it. The pandemic has caused many workers to change jobs or careers, though some Uber staffers blame uninspiring leadership:

The worry with a high attrition rate, said Uber employees and HR specialists, is that the company could lose key talent, causing leaders to spend more energy hiring replacements rather than focusing on the business.

An internal email from June announcing new roles for two HR employees said they would be “hyper-focused on recruiting and attrition.” Uber has hired more than 200 senior managers in the past six months, according to a person familiar with the matter.

Current and former Uber employees differ on why turnover is rising so much. Some chalk it up to longtime colleagues pursuing fresh opportunities. Others said it reflects Uber’s current culture and the leadership of CEO Dara Khosrowshahi, which, though far less tumultuous than the Travis Kalanick days, can also be less inspiring.

Read the full story here:

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The most promising fintechs to watch in 2021

5 vcs on a blue background lined up left to right talking about business fintech
From left: Karim Atiyeh and Eric Glyman, founders of Ramp; Shuo Wang, cofounder and CRO of Deel; Stephany Kirkpatrick, founder and CEO of Orum; and Richie Serna, founder and CEO of Finix.

Insider asked more than 40 top fintech investors – from Citi Ventures to Fin Venture Capital – to nominate the most promising fintechs to watch this year. The list includes a number of top B2B startups – here’s a preview:

Cardless

Cited by: Activant Capital (investor)

Total raised: $50 million

What it does: Cardless enables brands to launch their own digital credit cards.

Why it’s promising: “Cardless enables modern brands and fintechs that have built strong communities to offer innovative and rewarding digital credit cards to their consumers, allowing these companies to launch programs in weeks versus six to nine months with best-in-class developer infrastructure,” said Steve Sarracino, founder and partner at Activant Capital.

Check out the full list here:

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Ryan Tolkin made Schonfeld a heavyweight hedge fund

headshot of ryan tolkin against a green background with faded images of duke university, steven schonfeld, and the schonfeld logo

What started as a family office evolved into an industry giant with over 600 employees – and 34-year-old Ryan Tolkin led the way. Insider spoke to those who know him best to better understand who he is and what drives him:

How he got to his lofty perch is a combination of natural ability and extreme focus and discipline, said those who know him best. Professors described him as both intelligent and prepared, while fraternity brothers remember a driven friend who wouldn’t let anything get in the way of his ultimate goals.

Schonfeld has grown into one of the industry’s more prominent multi-managers thanks to years of solid performance, fundraising, and aggressive hiring.

Now, after being appointed CEO at the beginning of the year and launching a new macro division more recently, Tolkin is riding as high as ever.

Find out more about the ambitious CEO here:

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Finally, here are some headlines you might have missed last week.

– Olivia

Read the original article on Business Insider

We found Jeffrey Epstein’s other little black book, which revealed hundreds of new connections to the disgraced financier and convicted sex offender

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

Jeffrey Epstein's address book surrounded by ripped pieces of paper with select names from the book on a red background

What’s trending this morning:


Inside Jeffrey Epstein’s little black book

Insider has obtained a never-before-seen address book that appears to have belonged to Jeffrey Epstein in the ’90s, connecting him to a new network of prominent financiers and political figures:

The Epstein book came to light through a circuitous and unusual path: A self-described “enigmatic rock chick” living in Manhattan’s East Village found it on the sidewalk in the late 1990s.

Denise Ondayko, a former musician who now lives in the Bay Area, said she was walking down Fifth Avenue when she spotted a black address book on the ground. Flipping through, she found addresses and phone numbers for members of the Trump and Kennedy clans, and iconic chroniclers of wealth such as Robin Leach. She decided to hold onto it, slipped it into a box, and forgot about it.

In May 2020, Ondayko and a relative were cleaning out an old storage unit she had rented in Michigan when the long-buried book emerged from a box of odds and ends. Thumbing through it – and seeing the dozens of entries for Epstein’s myriad properties – the relative immediately recognized who the owner was.

Here’s what we discovered in Epstein’s book:

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Spotify employees are frustrated with Joe Rogan and his show

Joe Rogan

Spotify has benefited from Joe Rogan’s unfiltered style – but not everyone at the company is a fan. Some employees are frustrated with his controversial show, and say he’s making the company so much money it refuses to rein him in:

Rogan, who has a $100 million licensing deal with Spotify, is one of the most powerful figures in media, and one of the most controversial. On his show, he’s aired COVID-19 misinformation, laughed as a guest described sexual harassment, and hosted a prolific conspiracy theorist three times.

Spotify, which owns the exclusive rights to stream “The Joe Rogan Experience,” has stood by him, despite removing a few dozen episodes from his archive. But some of the company’s employees have been irritated by Spotify’s largely hands-off approach and have pushed leadership to rein Rogan in. Spotify hasn’t budged.

See what employees are saying:

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America is experiencing “The Great Reshuffle”

A cartoon businessman runs up steps, with money falling out of his briefcase.

Millions of Americans are voluntarily leaving their jobs for better ones at a speed we haven’t seen since the turn of the millennium:

In the 25 years that Dawn Fay has been in the recruiting business, she’s seen a hot job market several times. But nothing, she says, comes close to the frenzy she’s seeing right now, as the economy begins to boom in the wake of the pandemic. “There is so much movement in the market,” Fay, a senior district president at the staffing firm Robert Half, said. “The churn is amazing to see.”

“Churn” may be something of an understatement: It’s downright chaos at HR departments across the US. So many Americans have quit their jobs this spring that the resignation rate has skyrocketed to a two-decade high. And people aren’t just looking to switch employers – some are jumping into new professions altogether, while others are climbing the ladder at their current workplace.

The result is an economy-wide game of musical chairs – a wholesale transformation of the job market that has left employers scrambling to retain employees and attract new ones. Call it The Great Reshuffle.

Here’s what that means for the American economy:

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This secret club helps prepare young CEOs to take over the world

young presidents organizations 4x3

Young Presidents Organization, or YPO, is an ultra-exclusive social group that offers business leaders a chance to speak openly about what it’s really like running a company:

Founded in 1950, YPO has a reputation as a fraternity for ultra-rich white men who inherited their family’s business, and, for a time, it was.

But over the years, it has recruited more entrepreneurs, who tell Insider that the exclusive club is worth the price of admission: a $7,950 upfront fee and chapter dues ranging from $2,000 to $7,000 annually. Plus, the club’s secrecy doesn’t hurt.

Confidentiality is required by a code of conduct, and members say that clandestine atmosphere is part of the appeal. Executives can unload about work or their personal lives, trusting that nothing will slip out. In fact, the group’s code of conduct has an often-repeated line – “Nothing, Nobody, Never” – that serves as an unofficial slogan.

Take a look at the organization that boasts 30,000 members worldwide:

Also read:


Finally, here are some headlines you might have missed last week.

– Matt

Read the original article on Business Insider

Great Jones’ pastel-colored cookware became a must-have for millennials. Behind the scenes, a war was brewing between the estranged best-friend founders.

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

Hope you’re all having a nice July 4th holiday. Here’s what we’re going over today:

Burning photo of Great Jones co-founders Maddy Moelis and Sierra Tishgart with colorful dutch ovens behind them, on top of a pink background

What’s trending this morning:

One more thing before we start: We’re relaunching our Insider Advertising newsletter, featuring original analysis from media and advertising editor Lara O’Reilly. Sign up here to get it in your inbox Thursday.


Great Jones’ unraveling

When Sierra Tishgart appeared to push her cofounder, Maddy Moelis, out of the company, Great Jones employees launched an uprising, arguing they saw “no successful path forward” with Tishgart as their leader. But the mutiny didn’t go as planned:

By September 2020, all six of the full-time staff had quit.

How, exactly, did Great Jones’ staff implode so spectacularly? Emails reviewed by Insider depict a war between two estranged friends over the future of the company, with a group of big-name investors and advisors providing ammunition on both sides. But employees caught in the middle just saw an image-obsessed boss whose poor management and decision to oust her well-respected cofounder during a pandemic left them no choice but to resign.

“It just got super ugly,” an employee who led the operations team said, adding that her mental health suffered because of Tishgart’s leadership. “I had hit my breaking point. I was, like, ‘I can’t see a path forward in which I can work with this person.'”

Here’s what we know about the founders’ infighting:

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The other side of Bill Gates

One image of a smiling Bill Gates on the left, a stern Melinda Gates in the center, and a thinking Bill Gates to the right on a black backgroundWe spoke with people who worked with Bill Gates, who said he was known for swearing and berating underlings, and for pursuing women in and out of the office:

In the summer of 1988, Bill Gates took a helicopter to Les Arcs ski resort in the French Alps for an international sales meeting for Microsoft. He was in the mood to let loose.

One night, Gates joined his employees for drinks in a Swiss chalet and partied until the sun came up, recalled Dan Graves, a former Microsoft export manager. At about 5 in the morning, Graves nearly tripped over Gates, who was lying on top of a woman out on the lawn. The pair were “just snuggling,” Graves told Insider.

It’s not the kind of story most people think of when they imagine Gates, with his oversized glasses, boyish haircut, and nerdy persona. Till very recently, he was better known for quirky Reddit AMAs, publicly advocating for COVID-19 vaccines, and pumping billions into philanthropic work, alongside Melinda, his wife of nearly three decades.

Take an inside look at a different side of Bill Gates:

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Experts are bracing for a post-pandemic “burnout wave”

GettyImages 1252382020 Exhausted businessman

In an Insider survey of 1,000 employed Americans across the country, 72% of respondents who are returning to an office after working remotely said they’re feeling burned out – compared to 60% of those who have been going into the office consistently:

Ariane Ollier-Malaterre studies the future of work, focusing specifically on how people set boundaries between their personal and professional lives. She answered my call from Canada, excited to share some of her research findings – despite that she had the day off.

This blurring of boundaries is a trap Ollier-Malaterre knows that others will fall into as well. She is especially worried now that many people are returning to the office after more than a year of working remotely. She keeps picturing a nightmare scenario in which employees commute to the office, spend a full day there, and then return home just to continue answering emails and calls.

“It would be the worst of both worlds,” for employers and employees, Ollier-Malaterre said.

Read more about what she’s calling the post-pandemic “burnout wave”:

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Paul Weiss’ lucrative relationship with Apollo

Brad Karp, chair of Paul Weiss, and Leon Black, former CEO of Apollo Global Management with an alternating pattern of Paul Weiss and Apollo Global Management's logos on a blue backgroundOver the past decade, Paul Weiss has boosted its profits with the help of legal fees from its large private-equity client, Apollo Global Management. The account also changed the law firm’s culture, insiders say, and opened it up to criticisms about its independence:

The relationship has pumped up the law firm’s sizable earnings and lifted its dealmaking profile, leading to nearly 100 mergers and acquisitions in which Paul Weiss advised Apollo and its affiliates.

But there has also been a cost to the cozy relationship, according to interviews with 13 people who have worked in its corporate department over the past decade.

Insider also interviewed dozens of others, including current and former Paul Weiss attorneys, consultants, and recruiters, as well as competitors, to offer an account of how Paul Weiss became so involved in Apollo’s business – a relationship one former firm lawyer likened to a plot line in the TV show “Mad Men,” when executives at a fictional ad agency scrambled to please its Big Tobacco client, Lucky Strike.

Read more from our exclusive report:

Also read:


Finally, here are some headlines you might have missed last week.

– Matt

Read the original article on Business Insider

The junior banker shortage has gotten so bad some Wall Street firms are lowering the standard for new hires

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

Banks are desperate to score more analysts and associates to help with mountains of deal work.

What’s trending this morning:


Investment banking’s labor shortage

The national dearth of employees hasn’t spared the banking industry. Without enough talent to handle workloads, banks are having to lower their hiring standards, and mid-level and senior bankers are having to roll up their sleeves:

Just months after junior bankers railed against management amid crushing levels of burnout, one of the root drivers of the problem has yet to be solved: Banks have too few hands on deck to handle their massive deal loads.

As a result, some senior bankers have been forced to work on deal processes that typically would have been relegated to the most entry-level employees, according to some banking insiders.

In some cases, the situation has gotten so dire that banks have had to turn away business.

Here’s what else you need to know:

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Shopify is pushing into advertising

Tobias Lütke shopify

In a major move for the e-commerce platform, Shopify is planning to unveil a tool to help advertisers target Facebook and Google ads. The tool would aggregate shopper data from Shopify’s 1.7 million businesses:

Shopify has not been directly involved in advertising, but that’s about to change.

The e-commerce-software company, which lets merchants sell products online, plans to roll out a tool called Shopify Audiences, according to retail and advertising sources familiar with Shopify’s plans.

Shopify will let advertisers use its data to target ads on Facebook and Google, according to these people, who said they saw a video tutorial that Shopify shared of the product.

Here’s how Shopify Audiences will work:

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Congressional staffers share their budgets

Capitol Hill staffer March 2021

Some congressional staffers make “poverty wages,” starting in the low $20,000s. We spoke with eight current and former staffers, who shared their budgets to show how thin they were stretched:

An entire paycheck going to daycare. Vending-machine ice cream for dinner. Tossing hundreds of dollars at a decade’s worth of credit-card debt. Relying on income-assisted housing to keep a roof over their head.

These are the real-life budgets of Capitol Hill staffers, whose pay starts in the $20,000s to work demanding jobs in one of the most expensive cities in the country.

“The hardest thing for us is when we see members who are charging progressive causes, and even after knowing everything we’ve been through this year, say, ‘Here’s a turkey club sandwich and a salary that wouldn’t even get you an apartment you can afford,'” one legislative aide of a House Democrat said.

See their budgets – and how they make them work – here:

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iBuyers like OpenDoor and Zillow are booming

One hand on the left holding a few one dollar bills and one hand on the right holding a house with Zillow, Opendoor, and Redfin logos patterned out on a blue background

A growing number of homeowners are choosing to sell to iBuying firms like Opendoor and Zillow, which offer convenience and certainty – but generally pay below-market prices:

Amy Melcher has two young daughters, a demanding job as a public defender, and the responsibility of taking care of her father, Gary, who just turned 81 and is in poor health.

So when it came time to sell Gary’s single-level, three-bedroom home in Phoenix earlier this year to help pay for his move to an assisted-living facility, Melcher decided to eschew hiring a broker, putting the house on the market and scheduling showings with prospective bidders. She sold to Opendoor, one of several instant buyers, nicknamed iBuyers, that promise to streamline the normally tedious task of selling a home.

But convenience has a cost.

Less than two months after it purchased Melcher’s house for $259,700, Opendoor relisted the property for $304,000, a sum that would net it a tidy 17% profit, if it is able to sell for that amount.

Read up on the burgeoning iBuyer industry:

Also read:


Finally, here are some headlines you might have missed last week.

– Matt

Read the original article on Business Insider

Fred DeLuca ran Subway like a titan, sleeping with franchisees’ wives, micromanaging, and penny-pinching. Insiders say he set it up for failure.

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

_Fred DeLuca, poses with a sandwich in a Parisian Subway restaurant on June 17, 2011 Photo credit should read ERIC PIERMONT_AFP via Getty Images

What’s trending this morning:


How Fred DeLuca sent Subway into a tailspin

By the time he died in 2015, Fred DeLuca had created a secretive, complex multibillion-dollar enterprise, and ensured no one knew Subway the way he did. We spoke with 20 of DeLuca’s employees, business partners, and friends to understand why a man obsessed with his company failed to protect it:

Despite an estimated net worth of $3 billion, DeLuca eschewed designer suits, flew coach, and berated his daughter-in-law if she dared to pay up for organic produce at Whole Foods.

Frugality didn’t always translate into modesty, though. As DeLuca grew Subway from a tiny submarine chain into a behemoth with 27,000 locations and $17 billion in global sales in its heyday, he refused to relinquish much control.

He ran Subway like a titan, maintaining a tight grip on the company operations and surrounding himself with employees who loved and feared him. DeLuca devised a system that gave him the final say and even philandered with some franchisees’ wives, two sources said.

And he got away with it.

Read our full profile on the man who built – and ultimately hobbled – the Subway empire:

Also read:


The 46 most promising startups of 2021

Li Jin, Hans Tung, Gabby Cazeau, and Mike Duboe on a purple background.

We asked top venture capitalists to name the most promising US startups so far in 2021. The result is an exciting list of rising startups at every stage from a range of industries:

Anis Uzzaman of Pegasus Tech Ventures and Hans Tung of GGV Capital both highlighted a sleep and meditation app Calm.

The pandemic shone a spotlight on wellness and mental health. Calm was already one of the biggest names in wellness tech, and it’s poised to expand as the world emerges from pandemic lockdowns, Uzzaman said. Before the start of the year, it scored a $2 billion valuation in its Series C round.

“Mental health is often overlooked yet is among the most important aspects of healthcare,” Tung said.

Get the full list here:

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Why the healthcare industry is skeptical about the new Alzheimer’s drug

alzheimers research 4x3

Biogen’s new Alzheimer’s drug stumbled through testing, but will nonetheless become available in the US with a price tag of $56,000. Experts say the drug’s approval could make it more difficult to enroll people in tests of better treatments, and are worried about its effectiveness:

The arrival of the first new Alzheimer’s drug in two decades should have been a moment of celebration. But so far, the healthcare industry is feeling concerned.

On Monday, the US Food and Drug Administration approved a new medication called Aduhelm. The drug, made by the biotech company Biogen, is designed to remove a sticky plaque that builds up in the brains of some people with Alzheimer’s, which it did in clinical trials. But it isn’t clear that using the drug to clear this plaque leads to an improvement in memory and cognition.

“I don’t believe that the drug provides benefits,” Dr. David Knopman, a neurologist at the Mayo Clinic, told Insider.

See why the new medicine has the health community worried:

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How officials helped sell public school access to Chinese elite

Steve Ma with the Pegasus California School emblem and school and California and China flags next to him on a pale yellow background

Pegasus California School seemed impressive. The class sizes were significantly smaller than other Val Verde schools, and it offered dedicated evening study sessions overseen by faculty. The school guaranteed parents, in writing, that every graduate would gain admission to one of the top 100 US universities. But there was a hitch:

Even though it was a part of an American public-school district, tuition and fees at Pegasus added up to more than $34,000 a year. And even though it was largely staffed by Val Verde teachers and administrators, it was actually a boarding school. And even though it conferred a Val Verde diploma to graduates, Pegasus California School was really a private academy exclusively serving Chinese students in Qingdao, China.

How it got there, and how it leveraged the resources and personnel of a middling public-school district for the benefit of private investors and wealthy families halfway across the globe, is the story of one businessman’s quest to monetize American public education with the help of California’s most powerful education official.

Read our full exclusive report on Pegasus California School here:

Also read:


You’re invited: Join us and learn how to navigate the complicated process of buying a home in today’s hot market on Tuesday, June 22 at 12 p.m. ET – during a free, hour-long virtual event presented by Fidelity. Register here.

Finally, here are some headlines you might have missed last week.

– Matt


Read the original article on Business Insider

‘Tiger Mom’ Amy Chua speaks out about her battle with Yale Law

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

Amy Chua

What’s trending this morning:


How ‘Tiger Mom’ Amy Chua became the pariah of Yale Law

Amy Chua is best known for 2011’s “Battle Hymn of the Tiger Mother,” a memoir about her childhood as the daughter of Chinese immigrants and her experience raising her own daughters. But she’s also known as Yale Law’s “pariah,” for a number of reasons:

This April, the Yale Daily News reported that Chua would be stripped of teaching a small class to first years after students came forward to the administration alleging that Chua was hosting dinner parties with alcohol for law students and “prominent members of the legal community” at her home.

Some students considered the debacle to be a result of a professor who had pushed the limits at Yale for years. Others saw it as an attempt to cancel a popular teacher because she supported her husband, Jed Rubenfeld and Brett Kavanaugh amid allegations of the men’s sexual misconduct.

Almost all sides saw it as the inevitable eruption of a long-simmering tension between the most elite law school in America and its most famous professor.

Get the full rundown of her fall from grace:

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Inside the world of angel investor Jason Calacanis

Multiple photos of Jason Calcanis on top of a spiraling line on a green background

What is it really like for young aspiring entrepreneurs heeding Jason Calacanis’ call to change the world? To find out, we spoke with more than 50 people close to him, including portfolio-company founders, accelerator alumni, and current and former colleagues:

Crackling with energy and attitude, Calacanis is an unmistakable presence in Silicon Valley. The squat, Brooklyn-raised investor is often the loudest voice in the room, whether he’s preaching his philosophy for success (“do the work”) on one of his podcasts or expounding on opportunities to build the next Uber (he was one of its first outside investors in 2009).

For many young entrepreneurs with dreams of launching a startup and making it big in Silicon Valley, Calacanis is the first stop on the journey. A former tech-industry publisher, Calacanis has emerged as one the most sought-after suppliers of “seed funding,” the small sums of money that early stage startups raise to see whether their ideas have legs.

The money isn’t the main draw, though. Mixing showmanship, bravado and an assortment of media megaphones, Calacanis has built a one-man brand that touts the glory of tech startups with infomercial-like zeal – and casts him as the astute coach, talent agent, promoter, and gatekeeper to achieving success in the game.

Learn more about the polarizing investor:

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Gen Xers are settling into the status quo

A gen X woman sitting down in the center with a laptop. In the background, a millennial walking off to the left and a baby boomer walking off to the right.

As vaccination rates rise and the pandemic fades in the US, certain generations are soul-searching – but many in Generation X are instead opting for the status quo:

Consider, for instance, the millennials, some of whom are embracing what The New York Times calls the YOLO economy – a happy-sounding acronym for “you only live once.” They’re quitting stable, high-paying jobs to travel, write screenplays, and take advantage of the freedom and flexibility of remote work by moving to exotic locales.

In that same vein are the baby boomers – millions of whom are exiting the workforce years earlier than planned because of COVID-19. Fortified by fat 401(k) accounts and appreciated home values, they’re, according to Bloomberg, in a “rush to retire in a new life-is-short mindset.”

Generation X didn’t get the memo.

Why Gen X isn’t making dramatic life changes:

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Capitol Hill staffers vent about unlivable wages

Mitch McConnell and staff

Hill staffers have put up with low wages for years, with some starting in the high $20,000s. We spoke with 14 current and former staffers, who discussed how low pay affected their lives:

Several days a week, a Capitol Hill intern would rise before dawn to take the bus not to her congressional members’ office but to a Starbucks, where she worked 5:30 a.m. shifts before heading east to start her unpaid full-time internship.

On other days, she left the hallowed halls of Congress at dusk, exhausted, only to work several more hours as a barista giving other Washingtonians their energy fix.

She ultimately survived the internship and landed a full-time job working for a member of Congress – but the starting pay of $32,000 still wasn’t enough to cover her financial obligations.

Read more from our exclusive report:

Also read:


Plus, an invitation: Join us Tuesday, June 15 at 12 p.m. ET for a free virtual event on translating the HR digital revolution to everyday work, presented by Paycom. Register here.


Here are some headlines you might have missed last week.

– Matt

Read the original article on Business Insider

Current and former Oracle employees say there’s a ‘culture of fear’ at its flagship cloud unit

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

oracle Clay Magouyrk

What’s trending this morning:


Oracle’s “culture of fear”

A dozen current and former Oracle employees and executives said there was what one person described as a “culture of fear” at OCI – an environment at least partially created by hard-driving cloud boss Clay Magouyrk:

Magouyrk, a former Amazon software-development engineer who joined Oracle as an individual contributor in 2014, quickly impressed Chairman Larry Ellison and CEO Safra Catz with his ability to deliver results quickly, leading to his rapid ascent through the ranks.

But Magouyrk’s reign has raised questions about Oracle’s culture. His leadership style was cited in a pair of lawsuits filed by former vice presidents against the company and an executive, including an allegation that he once told an executive that his actions were “f—ing stupid” in front of all of OCI’s senior leaders.

Insiders said those comments were “tame” compared with others he had made.

Read our full report here:

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He took his boss’ money and then his head, police say

Tyrese Haspil

Fahim Saleh’s body was found in his apartment, dismembered and decapitated. There was barely a trace of blood, his $2.25 million apartment so meticulously scrubbed that an official later described it as a “professional job.” But the accused killer wasn’t a professional. Police say it was his former assistant, Tyrese Haspil:

It was a sultry July week in New York City, and Haspil and his girlfriend, Marine, were in a celebratory mood. Haspil, then age 21, rented an $18,000-a-month Airbnb on the cobblestoned Crosby Street for a romantic staycation for Marine’s 22nd birthday.

For two days, from July 15 to July 17, 2020, the pair strolled through Manhattan’s NoHo neighborhood, arm in arm, shopping at Christian Louboutin and dining out.

Less than a 15-minute walk away, police discovered the body of Haspil’s former boss, Fahim Saleh. The 33-year-old tech entrepreneur had been decapitated and dismembered in the living room of his East Houston Street condo on Manhattan’s Lower East Side.

We dove deep into what went wrong:

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Bank of America’s talent exodus

Brian Moynihan

Dozens of people have quit Bank of America’s mortgage business this year, according to four current and former bankers. Two of them suggested the resignations have now climbed above 100, and that more departures are expected at the end of June:

June is when the bank pays out its next quarterly bonuses, one of the people said.

The salespeople are leaving because they’re frustrated over a series of changes the bank made to its mortgage policies that have made it harder for some salespeople to make money and increased concerns about corporate surveillance, the people said.

The changes have also knocked Bank of America down several notches in the ranks of the biggest home-loan originators, according to data compiled by Inside Mortgage Finance. Bank of America’s 2008 purchase of Countrywide Financial Corp. briefly created the nation’s largest mortgage lender and servicer, though it also saddled the bank with years of problems and billions of dollars in fines and settlements over Countrywide ‘s lending practices.

Here’s what else you need to know about the recent departures:

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Why a full economic recovery could be years away

reallocation friction

By now you’ve probably heard about the big mystery in the US economy: Restaurants can’t find enough people to hire, even though millions of Americans remain out of work. Things are supposed to go back to normal in the fall – but what if job numbers don’t return so quickly to the status quo?:

A few economists are beginning to raise that possibility – that the pandemic’s effects will continue to batter the leisure and hospitality sector, which employs one in 10 American workers, well beyond the fall.

In a normal economy, it’s not a problem when workers change careers; other job seekers can come in to take their place. But an exodus, like the one we may be seeing now in hotels and restaurants, is different. It can take time for workers to find a job in an unfamiliar industry in which they have few connections. Their new positions could require them to move to another city or state. And inexperienced workers require training to build up the necessary skills.

Until all that happens, jobs go unfilled – keeping unemployment elevated, even though the demand for those jobs is there. Economists call it reallocation friction.

Why economists think it might be years until things return to normal:

Also read:


Lastly, here are some headlines you might have missed last week.

– Matt

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The Giving Pledge was supposed to boost philanthropy. But it may be doing more to benefit rich donors.

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Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

warren buffett bill gates

What’s trending this morning:


Billionaires who pledged half their wealth to charity are moving slow – and still getting massive tax breaks.

Some of America’s richest families signed the Giving Pledge, a public promise initiated by Bill and Melinda Gates and Warren Buffett to give at least half of their wealth to charitable causes – but many have been slow to make good on their promise:

Death was the Giving Pledge deadline. You could give half your money away beforehand, or you could leave it to charity in your will. Mark Zuckerberg, who at age 26 was among the second group of Giving Pledge signers, made clear that he did not intend to wait nearly that long.

“People wait until late in their career to give back,” Zuckerberg said in a Giving Pledge press release. “But why wait when there is so much to be done?”

But waiting, it turns out, is precisely what Zuckerberg and his wife, Priscilla Chan have done. During its first five years, the Chan Zuckerberg Initiative handed out a total of $2.7 billion in grants – roughly 6% of their wealth at the time they made their pledge.

Zuckerberg is not the only signatory to take things slow. Elon Musk, who signed the pledge in 2012, has donated only $100 million so far – less one-tenth of 1% of his current net worth.

Read our full report here:

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Amazon plans a new at-home medical-test brand

Jeff Bezos
Led by CEO Jeff Bezos, Amazon has continued waging legal battle over the JEDI contract, which the Pentagon now sees as reason to abandon it.

Amazon is considering the launch of a new line of business, called “Diagnostics,” that would offer an array of at-home medical tests and a third-party marketplace for general home-diagnostics services:

The company is in talks to launch its own COVID-19 testing kit in June, potentially around the start of its Prime Day annual shopping event, according to people directly involved in the matter.

Additionally, Amazon could expand to offer testing kits for infections that lead to respiratory and sexually transmitted diseases. Amazon’s long-term goal is to expand into other areas, such as clinical genomics, and launch a third-party marketplace that sells medical tests from other companies.

Plans for Amazon’s new home-testing products represent the retail giant’s first foray into the health-diagnostics space. They’re part of Amazon’s expansion into the broader healthcare industry.

Here’s a look at what we know so far:

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The secret life of Ian Osborne

ian osborne

British investor Ian Osborne has dazzled the tech and finance industries through Social Capital Hedosophia, his SPAC with Chamath Palihapitiya. We spoke to more than 30 of Osborne’s associates to learn more about the man at the forefront of the “blank check” investment frenzy:

An elusive power broker, Osborne does not like to be in the spotlight, though he’s frequently at the center of the action – SCH dazzled Wall Street with its first reverse merger with Virgin Galactic in 2019, igniting the current SPAC craze.

Part connector, part fixer-for-hire, the 38-year-old is an unlikely lord of high finance and tech. Through means that aren’t entirely clear to even some close acquaintances, he has finagled his way into the circuits and pocketbooks of the world’s most rich and famous, earning favor by doing favors, and parlaying his impressive black book into a lucrative, and sometimes mysterious, career.

“How he got to the level he did, I don’t know but it’s an art,” one longtime friend and business associate told Insider.

Take a look inside Osborne’s enigmatic life:

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Who is Mala Gaonkar?

mala gaonkar hedge fund 4x3

Mala Gaonkar is one of three people running $30 billion Lone Pine Capital, alongside Kelly Granat and David Craver, taking over the firm from the billionaire founder Stephen Mandel Jr., who retired at the beginning of 2019. We looked into one of the industry’s more interesting characters:

An upside-down investing landscape requires an outside-the-box thinker.

For stock investors nowadays, thinking about what the future looks like might be more important than the company’s current performance. In essence, that means copying what Gaonkar and Lone Pine have been doing for years.

Gaonkar is the firm’s expert on the bigger picture – she’s less interested in a company’s latest earnings release and more focused on what trends will be dominating the world in a couple of years’ time.

We explored what, exactly, makes Gaonkar such a trailblazer:

Also read:


ICYMI: What you need to know about the WarnerMedia-Discovery deal

WarnerMedia Stankey
AT&T CEO John Stankey

AT&T announced this week it would spin off WarnerMedia and combine it with Discovery Communications in a blockbuster deal that would bring a bevy of media brands – including CNN, HBO, and HGTV – under one roof.

To help you make sense of the massive merger, we compiled the stories you’ll need to read to stay up to date:


Lastly, here are some headlines you might have missed last week.

– Matt

Read the original article on Business Insider

Some Amazon managers say they hire people they intend to fire later just to meet their turnover goal

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

Jeff Bezos

What’s trending this morning:


Inside Amazon managers’ “hire to fire” practice

Amazon has a goal to get rid of a certain percentage of employees every year – and three managers told Insider they felt so much pressure to meet the goal that they hired people just to fire them:

“We might hire people that we know we’re going to fire, just to protect the rest of the team,” one manager said.

The practice is informally called “hire to fire,” in which managers hire people, internally or externally, they intend to fire within a year, just to help meet their annual turnover target, called unregretted attrition (URA). A manager’s URA target is the percentage of employees the company wouldn’t regret seeing leave, one way or the other.

The existence of the practice in at least some parts of the company shows how Amazon’s system of requiring managers to hit a target attrition goal every year can foster controversial norms and practices.

Get the full rundown:

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James Charles faces another threat to his beauty empire

James Charles Kelly Rocklein

James Charles’ former producer and creative director, Kelly Rocklein, is speaking out about her lawsuit against him, which alleges wrongful termination, disability discrimination, failure to provide reasonable accommodation, and failure to pay minimum wage for overtime hours worked:

In addition to working her more than 80 hours a week without overtime pay, according to Rocklein and her complaint, Rocklein said Charles seemed “incredibly unprofessional.”

“Imagine having to go over and essentially pick James up out of bed, tell him to brush his teeth, tell him, ‘OK, what do you want to eat? OK, someone is coming to do your laundry. OK, I’m going to get your laundry, I guess. OK, time to start filming – you don’t want to film – well, we both know you have to. So please let’s think about it,'” Rocklein said.

She also said Charles walked around the house naked in front of her, called Rocklein names like “bitch,” and once texted her, “Kelly i might need your help shaving my butt” in preparation for a revealing Coachella outfit. Rocklein said Charles made her feel “extremely uncomfortable.”

Take a look at everything that led to the lawsuit:

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Shopify CEO’s email to managers outlines company’s core beliefs

Tobias Lütke shopify

In the wake of intense internal debate about issues of race, Shopify CEO Tobi Lütke sent an email to managers outlining the company’s core beliefs. In it, he made clear what the company is not – it is not a government, he said, and it “cannot solve every societal problem”:

In the email, he said that “endless Slack trolling, victimhood thinking, us-vs-them divisiveness, and zero sum thinking” amounted to a “threat” that breaks teams. He encouraged managers to stay focused on Shopify’s mission of empowering online commerce and entrepreneurship.

A Shopify spokesperson told Insider that the company was not trying to emulate Basecamp in its handling of political issues and that it welcomed discussion of current events.

“As Shopify is growing quickly with new team members joining every day, our executive team will often send company-wide messages to remind the organization of our vision for equitable entrepreneurship and to reignite our spirit of positive collaboration,” the spokesperson said. “This reinforces our need to work together in creating a future that unites, not divides.”

Read the full email here:

Also read:


Top mortgage bankers are leaving Wells Fargo

Top mortgage lenders are leaving Wells Fargo

More than 20 top mortgage lenders at Wells Fargo have left in the past year, while four of the bank’s elite President’s Club members have left since December. Five current and former mortgage bankers described a culture of heavy oversight and clunky technology that limited their ability to do business:

Tom Goyda, a Wells Fargo spokesperson, said the exits are due to the competitiveness of the market for mortgage talent.

“We’ve been in a very competitive mortgage market, and top-producing loan offers are in high demand across the industry,” Goyda said. “Wells Fargo has hired top producers from other lenders, and some of our home mortgage consultants have moved to other firms.”

But the mortgage bankers who spoke with Insider pointed to excessive red tape, clunky legacy technology, and the Federal Reserve-imposed asset cap as factors that stymied loan growth and led them to quit.

More on the mortgage bankers’ departures:

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Jeremy Grantham says current market is “eerily like 2000”

Legendary investor and co-founder of Grantham, Mayo & van Otterloo, Jeremy Grantham

Jeremy Grantham made prescient calls about the 2000 and 2008 bubble bursts, and said the current market was eerily reminiscent of the dot-com bubble. He describes four indicators that have lined up for what could be “the biggest loss of perceived value from assets that we have ever seen”:

When Jeremy Grantham declared in January that “the long, long bull market since 2009 has finally matured into a fully fledged epic bubble,” he said he knew there would be “a substantial increase in crazy behavior” before it all came crashing down.

The cofounder of Boston’s Grantham, Mayo, van Otterloo & Co. is famous for having made prescient calls about the bursting of the 1989 Japanese asset-price bubble, the 2000 tech bubble, and the 2008 real-estate bubble.

“The thing about a bubble is if you can find more money and more crazy investors, it can keep going,” he said.

Here’s Grantham’s full market outlook:

Also read:


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Lastly, here are some headlines you might have missed last week.

– Matt

Read the original article on Business Insider

People are flocking to sextech startups ahead of the ‘hot vax summer.’ VCs are taking note.

Hello!

Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:

Sextech startups

What’s trending this morning:


Sextech startups are booming

As Americans prepare for a “hot vax summer,” people are flocking to sextech startups for all things sexual wellness. We spoke with five startups that said they’re seeing consumer spending habits change already – and that VCs are also getting in on the fun:

The pandemic made getting it on more difficult for everyone.

But now that half of American adults have had at least one dose of the vaccine, that could spell the end of a year of celibacy for many. Some are turning to sexual health and wellness startups to have more titillating and safe sex in the summer of love, startup founders and investors say.

The next several months could be boom times for companies in “sextech” and other sexual wellness businesses, from direct-to-consumer lingerie to birth-control delivery.

More on the red-hot sextech market:

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Goldman Sachs’ CEO is changing the bank’s DNA

Two images of Goldman Sachs CEO David Solomon in a picture frame on a red background.

David Solomon, who took over as Goldman’s CEO in October 2018, has steered the bank to blowout profits and a record stock price. But with partners quitting and burnout soaring, some insiders say the executive’s hard-charging style has come at a cost:

“David reviews businesses with a dispassionate, clinical eye,” said Jim Esposito, the cohead of Goldman’s investment banking division. “There are no sacred cows.”

On paper, it’s working spectacularly. Goldman smashed analysts’ expectations and set a revenue record in the first quarter, its stock soared to an all-time high of more than $356, and its ambitious plan to slash $1.3 billion in costs is on track. Wall Street analysts are singing Solomon’s praises, as are investors who laud the transparency Solomon has brought to Goldman’s operations.

But Goldman’s top ranks have seen almost unprecedented turnover, with six members of the management committee exiting over the past year. Among them were two Goldman lifers – Eric Lane and Gregg Lemkau, a potential CEO successor – whose departures stunned Solomon.

More on Solomon’s hard-driving style – and why it may be pushing execs away:

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Pandemic homebuyers open up about their experiences

Ilan and Sarah Harel

Since the start of the pandemic, hopeful homebuyers have been subjected to a buying frenzy that’s led to bidding wars, all-cash sales, sight-unseen purchases, and other leaps of faith – and they did it all in the name of achieving the American dream of homeownership:

After more than a decade renting in Queens, Ilan and Sarah Harel decided to leave the city and buy for the first time. They ultimately scored a $329,000 property in Pleasant Valley, New York, a Hudson Valley town with fewer than 10,000 residents that is just 90 minutes north of their former digs in Queens.

But snagging their dream home was no easy feat. It was the long-labored-over result of checking listing websites all day long for three months, making offers on properties for thousands of dollars over asking price, and competing with hundreds of thousands of New Yorkers like them who fled the city for greener pastures around the same time.

Their story illuminates a broader reality: The pandemic upended the real-estate market and, as a result, has pushed homeownership further out of reach.

Read their stories here:

Also read:


Meet the most transformative CEOs of 2021

Most impressive CEOs collage including Shantanu Narayen of Adobe, Albert Bourla of Pfizer, Mary Barra of GM, Jensen Huang of NVIDIA
From left: Shantanu Narayen, the CEO of Adobe; Albert Bourla, the CEO of Pfizer; Mary Barra, the CEO of GM; Jensen Huang, the CEO of Nvidia.

Leadership in 2021 is marked by transformation – of business models, of workforces, and of organizations themselves. Insider’s inaugural list of the Most Transformative CEOs celebrates four executives who are best meeting the needs of their many stakeholders:

Insider arrived at this list by way of both quantitative and qualitative analysis. We considered the 100 CEOs of the largest publicly traded US companies by market capitalization on the S&P 500 who have been in their positions since at least January 2019. We ruled out executives who are stepping down.

We evaluated companies and CEOs across measures of recent financial performance, ratings on employee review sites Comparably and Glassdoor, typical employee compensation and the CEO-to-median-pay ratio, and the 2021 Just Capital ranking of companies’ commitment to social responsibility.

We believe the following CEOs exemplify the traits and achievements needed to survive and thrive in that challenging environment.

Read the full profiles of each CEO here:


Finally, here are some headlines you might have missed last week.

– Matt

Read the original article on Business Insider