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Tag: board members

  • Female executive board members in Germany lose salary edge

    A woman stands in an office by the window and makes a phone call via a headset. The top female managers of Germany’s largest companies earned significantly less in 2024 and fell behind their male colleagues, according to the findings of a study by the consulting firm EY which was seen by dpa. Annette Riedl/dpa

    The top female managers of Germany’s largest companies earned significantly less in 2024 and fell behind their male colleagues, according to the findings of a study by the consulting firm EY which was seen by dpa.

    The salary of female board members in the DAX, MDax and SDax has fallen sharply, while men have earned slightly more.

    This reverses a long-standing trend: for the first time since 2014, women on the boards of top companies were paid less than men.

    Just a few years ago, there were very few women on the boards of stock exchange companies, which buoyed their salaries and meant that female managers overtook men.

    But that has changed, explains EY Partner Jens Massmann: “The times when female board members were a rare species and could demand very high salaries are over.”

    In 2024, the remuneration of female board members in the companies from the three DAX indices fell to an average of €2.15 million ($2.51 million), excluding chief executive positions. This was 11% less than in the previous year.

    In contrast, their male colleagues recorded a slight increase of 0.4% to €2.27 million.

    Overall, the remuneration of management board members fell by 3% to an average of €2.57 million. The salaries of the chief executives fell just as sharply.

    According to the study, the best-paid female manager was Merck boss Belen Garijo with €7.6 million. She was followed by Deutsche Bank board member Rebecca Short with €6.5 million and Helen Giza, the chief executive of Fresenius Medical Care with a salary of €5.7 million.

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  • Leadership shakeup at Hope Florida Foundation follows scrutiny of $10M grants

    Joshua Hay, the now-former chairman of the Hope Florida Foundation, testifies before the House Health Care Budget Subcommittee on April 15, 2025.

    Joshua Hay, the now-former chairman of the Hope Florida Foundation, testifies before the House Health Care Budget Subcommittee on April 15, 2025.

    Miami

    Three board members have left the Hope Florida Foundation, including the president and public face of the charity, amid questions over its transfer of $10 million from a Medicaid settlement for Gov. Ron DeSantis’ political purposes last year.

    The Department of Children and Families chose not to reappoint board president Joshua Hay, the president of a technology company that contracts with the state.

    The department also didn’t reappoint board members Stephanie White, a Pensacola adoption attorney, and Tina Vidal-Duart, executive vice president of major state contractor CDR Maguire.

    Both had asked for more information on the legality of the $10 million transfer during an April board meeting.

    The announcement, made during the organization’s board meeting Monday, came as a surprise to observers and wasn’t mentioned in its agenda. But the foundation’s lawyer, Jeff Aaron, said the board members were originally appointed to serve two-year terms, which recently expired.

    “Three of the board members had completed their full two-year term, and they rolled off the board onto other things,” Aaron said.

    “They all completed their term, and obviously grateful for their service,” he added.

    Hay did not respond to a request for comment from the Herald/Times. White declined to comment.

    “My term expired beginning of September,” Vidal-Duart said in a text message.

    The Department of Children and Families, which oversees the state-created charity, did not say why the three weren’t reappointed. The organization’s bylaws state board members “may be appointed to successive terms without limit.”

    “As is common among non-profit boards, Mr. Hay, Ms. Vidal-Duart and Ms. White left their appointments following their respective two-year terms, and the Department remains grateful for their service to support the mission of the Foundation and the Department,” department spokesperson Morgan Jones said in a statement.

    The department chose three replacements:

    • Bradford Smithy, a partner at Minneapolis-based wealth management firm Elevation Point

    • Elizabeth Butler, who told the board her background was in “engineering and management consulting”

    • Yaffa Popack, a DeSantis fundraiser and Miami Beach real estate investor whom he appointed to the Florida International University board of trustees in 2023.

    “Hope Florida is an amazing, amazing foundation,” Popack told board members Monday.

    Smithy did not attend Monday’s meeting.

    The foundation was created by the Legislature in 2023 to help the Department of Children and Families carry out its mission for Hope Florida, a state program championed by first lady Casey DeSantis and intended to steer Floridians off of government assistance and toward aid provided by charities and nonprofits.

    The Hope Florida Foundation, a 501(c)(3) nonprofit, is supposed to take in donations and distribute the money to churches and nonprofits that help people.

    It fell under scrutiny this year when the Herald/Times began questioning why it held a secret board meeting last year in which it accepted $10 million from a state legal settlement with the Medicaid contractor Centene.

    The foundation quickly gave $5 million each to two organizations, one of which was controlled by the Florida Chamber of Commerce.

    The two organizations then gave nearly all of the money to a political committee controlled by DeSantis’ chief of staff that was dedicated to defeating last year’s recreational marijuana ballot initiative. DeSantis later appointed his chief of staff, James Uthmeier, as Florida’s attorney general.

    Four former federal prosecutors told the Herald/Times that the use of money from a Medicaid settlement for political purposes could amount to a theft of government funds or other potential crimes. The state attorney in Leon County has an open criminal investigation relating to it.

    DeSantis has said the state did nothing wrong.

    The $10 million transfer could jeopardize the foundation’s nonprofit status because it could be construed as lobbying under IRS regulations. The foundation’s board has never directly addressed the issue.

    Amid the scrutiny over the transfer, the charity was found to have been operating without a budget or approved bylaws in violation of state law, had not filed its taxes and wasn’t holding public meetings or keeping minutes of those meetings.

    “Mistakes were made,” Hay told a House committee in April.

    On Monday, the board approved the first budget and grant policy in its history, requiring grants of more than $50,000 be approved by a majority of the board. Hay approved one of the $5 million grants on his own.

    The budget includes approval to hire a new executive director at up to $175,000 per year and to spend up to $120,000 for a general counsel. Aaron, the current general counsel, told the Herald/Times that his contract is capped at $60,000 and that the additional $60,000 would be for any additional legal work.

    It projects to raise $700,000 in donations and give away $250,000 in grants.

    The organization’s new president, Bob Schafer, said it was a “conservative” budget that will help the organization move forward.

    “This is by no means carved in stone,” Schafer said. Schafer’s background has not been released or mentioned by the organization.

    State Rep. Alex Andrade, a Pensacola Republican who has led the House’s probe into the $10 million transfer, watched Monday’s meeting.

    “It was bizarre to see board members replaced without notice and for this brand new board to immediately approve a budget that anticipates spending far more on overhead than on issuing grants,” Andrade said.

    Herald/Times staff writer Alexandra Glorioso contributed to this report.

    This story was originally published September 29, 2025 at 7:23 PM.

    Lawrence Mower

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  • Crowded race for one Santa Fe school board seat; second seat appears unopposed

    One of the two Santa Fe school board members up for reelection appears to be on a glide path to return to office unopposed while another will face two or possibly three challengers.

    The filing deadline was Tuesday for candidates seeking to run in the Nov. 4 election. A spokesperson for the Santa Fe County Clerk’s Office, which oversees local elections, said ballots had not yet been finalized but will be in the coming days.

    Santa Fe Public Schools’ District 3, which includes essentially everything in the school district north of Agua Fría Street, appears to still be an uncontested race for board Vice President Kate Noble. While William “Bill” Adams, who according to his campaign filing lives south of Santa Fe, sought to challenge her, he was disqualified because he lives in District 2 and not 3, County Clerk Katharine Clark said Friday.

    102620ElCaminoReal_67.JPG (copy)

    Jack Lain, principal at El Camino Real Academy in 2020, gets spare laptops for students during the first day of hybrid schooling during the pandemic. Lain is running for a seat on the Santa Fe Public Schools board.

    The District 5 seat, representing a midtown area stretching from Agua Fría Street south to Interstate 25, and east along Cerrillos Road from Airport Road to St. Michael’s Drive, has summoned four contenders, although it’s possible only three of them will make the ballot.

    The three confirmed candidates are former El Camino Real Academy principal and longtime educator Jack Lain — who will appear on the ballot under his legal name Jakob Lain; Juan Blea, a writer, educator, and former city and state employee; and Lynn Gardner Heffron, who was appointed to serve in the board seat for the past year following previous board president Sascha Guinn Anderson’s departure June 2024 to study to become an Episcopal priest in Austin, Texas.

    Juan Blea

    Juan Blea, left, and his wife, Cherelle Blea.

    The fourth District 5 candidate, who might not appear on the November ballot, is Brenda Colburn, who filed her candidacy by the deadline but said she may be disqualified based on a “technicality.”

    “I was so late to the game,” she said in a phone call Friday morning. “And I didn’t know what all the rules were.”

    Colburn, a local real estate agent, said she wasn’t informed by the County Clerk’s Office when she filed that she needed to set up a candidate bank account, leaving her confused the following day when the lack of an account impeded her from finalizing her candidacy information.

    At that point it was too late for the candidate who didn’t even “plan on taking funds,” an idea she said would “keep me more honest” and one she didn’t think would be a big deal.

    “I’m not running a full-blown campaign,” she said. “It’s just for school board.”

    Despite her expectation that the lack of a candidate bank account would disqualify her, the County Clerk’s website listed her candidacy as “qualified” by Friday afternoon after appearing as “pending” in the morning.

    “The ball is in her court,” Clark wrote in a text message Friday afternoon, adding the state Secretary of State’s Office advised her to qualify candidates like Colburn that “qualify on our end.” Colburn, Clark added, had at least through the weekend to decide her “course of action.”

    As a Native Hawaiian who moved from there to New Mexico in 2017, Colburn said her last-minute decision was the product of a heated discussion with her friends about the woes of New Mexico. She called her new home a beautiful state where people suffer, children don’t receive the education they deserve, and a lack of industry and cheap housing seem to indicate things will not improve fast enough.

    Her proposal to her friends: “You go file in your county and I’ll file in mine.” Her friends did not follow through on the proposition, but she was “completely serious” about it.

    Despite what might be a failed bid, Colburn said she might consider running next time, owing to what she called corrupt public officials and conditions for youth that reminded her of a “troubled” upbringing in Hawaii without ample social support.

    “I speak this from experience because … I grew up like that,” she said. “I want to see better for my community and for this state.”

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  • ‘Judicial hesitancy’: Why Trump is betting the courts will green-light his ouster of Lisa Cook

    President Donald Trump’s quest to expand his power has moved to the marble corridors of the Federal Reserve, an institution once considered politically and legally off-limits.

    It will almost inevitably land at another marbled institution: the Supreme Court.

    The conservative justices who hold a majority on the court have provided only a few Delphic signals about how they view the president’s authority to fire board members of the Fed. Just three months ago, the justices obliquely suggested that the Fed — unlike other executive branch agencies — should retain some degree of independence from the president.

    But Trump is betting the court won’t second-guess his decision on Monday to fire board member Lisa Cook “for cause.” That might be a good bet, legal experts said Tuesday. Judges — including Supreme Court justices — may be reluctant to overturn a president’s subjective conclusion about what counts as an acceptable “cause,” or legal basis, for a firing.

    In this case, the purported basis is an unproven allegation that Cook lied on a mortgage application — even though Trump’s true motive likely is his frustration that the Fed has not lowered interest rates.

    “The firing of Lisa Cook ‘for cause’ may be pretextual, but is not obviously illegal,” said Harvard Law professor and former Justice Department official Jack Goldsmith, in a recent post on X.

    And if the courts take a hands-off approach, any pushback will have to come through other channels, namely political pressure from Congress or feedback from the financial markets.

    “Given this judicial hesitancy, the question going forward will be the extent to which politics — and the markets — can serve as a meaningful check,” said Jennifer Nou, a University of Chicago expert in administrative law and the separation of powers.

    Political backlash may be a tall order in a GOP-dominated Washington, where Republican lawmakers have leap-frogged each other to show deference to Trump. The economic response to Trump’s move is more unclear, but so far it has been tepid.

    In the meantime, a fast-moving legal battle is all but guaranteed. Cook — who said in a statement she is “gathering the accurate information to answer any legitimate questions” about her mortgage history — has vowed to challenge the firing in court and is expected to file her lawsuit imminently. She’s being represented by Abbe Lowell, a veteran white-collar attorney who also represents Hunter Biden and several other officials fired by Trump’s appointees. Lowell also once represented Trump’s daughter Ivanka and son-in-law Jared Kushner.

    A vague Supreme Court signal

    Key to the legal tea-leaf reading is a two-page, unsigned decision the Supreme Court issued in May allowing the president to fire two members of labor-related federal boards. In that decision, the court’s conservative majority emphasized the Federal Reserve should be viewed differently from other purportedly independent agencies housed within the executive branch.

    “The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,” the high court wrote.

    That cryptic line was widely seen as an important caveat to the Supreme Court’s recent pattern of expanding Trump’s firing power. The court has largely permitted the president to summarily remove the leaders of regulatory agencies without providing any reason, even leaders who are protected under federal law from discretionary firings.

    But the Fed, the court seemed to be signaling in May, is special. The implication was that the justices might not allow Trump to unilaterally oust its board members for no reason other than exerting political control over monetary policy.

    In a dissent to the court’s ruling, Justice Elena Kagan criticized her conservative colleagues for being inconsistent.

    “The Federal Reserve’s independence rests on the same constitutional and analytic foundations as” other historically independent agencies, like the National Labor Relations Board, the Federal Trade Commission and the Federal Communications Commission, Kagan wrote. The court’s two other liberal justices, Sonia Sotomayor and Ketanji Brown Jackson, joined her dissent.

    It’s unclear, however, how much the court’s discussion about agency independence will affect the outcome of Cook’s lawsuit. That’s because, unlike the leaders of other agencies whom Trump has fired without giving a reason, Trump did provide a reason for firing Cook.

    The president might therefore argue in the litigation that he has complied with the relevant statute, which authorizes the president to remove Fed board members only for “for cause.” That term has typically been understood to mean severe misconduct or malfeasance.

    The mortgage-fraud allegation against Cook might not meet the traditional understanding of “cause,” especially because Cook has not been charged with any crime, let alone convicted. The allegation was made by Trump’s handpicked appointee to lead the Federal Housing Finance Agency, who has repeatedly attacked Trump’s political rivals and leveled fraud allegations against a growing list of his detractors.

    But in the face of a vague statutory term like “for cause,” courts might defer to the president’s view of what counts as misconduct.

    One expert on interbranch legal disputes said he wouldn’t bet on the Supreme Court blocking the firing.

    “Congress is supine, and the courts are anxiety ridden,” said Stanley Brand, a former House counsel who now teaches at Penn State’s Dickinson Law School. “So, where’s the check? There isn’t any, right?”

    Unitary executive implications

    Another factor in the legal analysis is the Supreme Court’s recent embrace of the so-called unitary executive theory, which holds that presidents are entitled to sweeping control over executive branch agencies — and in particular over agency officials in positions to set policy.

    Under that approach, there seems to be little doubt that Cook and the other Federal Reserve governors have broad policymaking authority. Indeed, Trump’s key grievance against Cook, Federal Reserve Board Chair Jerome Powell and others is that they are not using their power to lower interest rates.

    “Trump may actually be stronger here than he is with tariffs or any of these other things that he’s doing,” Brand said. “If Congress creates an agency that he appoints, then it seems to me that theory establishes his authority to fire and hire.”

    The members of the Fed board are appointed by the president and confirmed by the Senate for staggered 14-year terms. Cook was appointed by Joe Biden in 2022.

    In Brand’s view, the Supreme Court could be more reluctant to bless a firing based on alleged misconduct than one based simply on political or policy disagreement.

    “There has been no adjudication of her culpability in terms of the central allegation that she filed misleading mortgage applications,” he said. “It seems to me, even if the court goes full in on the Fed being an executive agency, what are they going to say about the ability to just fire someone without any process at all?”

    In general, courts are not allergic to examining firing decisions to determine whether they are based on pretext or made for the stated reason. Courts all over the country do that every day in discrimination cases filed against the federal government, state government and private employers. But they’re rarely asked to undertake such a task in connection with a dismissed presidential political appointee.

    “This Court will indeed be mindful of separation-of-powers concerns when second-guessing personnel decisions of the president,” Nou said. “As a result, they may be more comfortable imposing some more process before cause-related firings relative to weighing in the substance.”

    Trump’s true target

    Trump allies say the attempted firing of Cook is a test case for Trump’s true design: firing Powell. If he can win the legal fight against Cook, they say, it may embolden him to go after Powell next.

    “It’s a shot over the bow that says [to Powell], ‘We’ve got cause on you too,” said Sean Spicer, Trump’s former White House press secretary who was the subject of an earlier legal fight over his removal from a presidential commission by Biden. “This is the proof of concept. It’s showing, ‘Hey look, we can do it, here’s the standard.’’

    Megan Messerly contributed to this report.

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  • Family of Luis Garcia, teen gunned down outside East High in 2023, files lawsuit against DPS, board members

    Family of Luis Garcia, teen gunned down outside East High in 2023, files lawsuit against DPS, board members

    DENVER — The family of Luis Garcia, the 16-year-old teen who was gunned down outside East High School in early 2023, has filed a wrongful death lawsuit against the district, its board of education and several of its members for what they claim was “negligence in providing a safe environment” by not having armed police on campus at the time of the shooting.

    The lawsuit, filed by the Barringer Law Firm on behalf of the Garcia family, was filed Monday and states that “East High School and DPS failed to uphold their legal duty under the Claire Davis School Safety Act by not maintaining adequate security measures, such as School Resource Officers (SROs).”

    It also alleges that Denver Public Schools (DPS) “had been aware of escalating violence and failed to take necessary steps to prevent further incidents, leaving students like Luis Garcia vulnerable.”

    Luis, 16, was inside a parked vehicle outside the school the afternoon of February 13, 2023, when he was shot several times by a juvenile only identified as “A.A,” according to the lawsuit. He was hospitalized with a “very poor prognosis” and died at Denver Health after a 17-day fight for his life.

    During a news conference a year after the shooting, Matthew Barringer, the family’s attorney, told news media that a case had been presented to the Denver District Attorney’s Office for its consideration, alluding that a possible suspect may have been found in Luis’ death. When pressed by Denver7 about that statement, Barringer said questions would have to go to the Denver DA’s office.

    Hear from the family of Luis Garcia in this news conference from earlier this year in the video below.

    Family of Luis Garcia speaks a year after his death

    In a statement Tuesday, a DPD spokespesron said via email the investigation into Luis’ death was still ongoing and there were no new updates in the case. Denver7 has also reached out to the Denver DA’s Office but we have yet to hear back.

    SROs were removed from all Denver schools after DPS ended its relationship with DPD in June of 2020 in the wake of George Floyd’s murder at the hands of Minneapolis police about a month earlier.

    But following Luis’ death, along with the death of another student at East High who was suspected of shooting two school administrators about a month after Luis was shot, the district reversed course and SROs were reinstated at several campuses across the district.

    Local

    Studies find impact of school resource officers on campuses remains inconsistent

    “This lawsuit is about accountability and ensuring that no other family endures the heartbreaking loss the Garcia family has suffered,” said a spokesperson for Barringer Law Firm. “Our goal is to shine a light on the systemic failures at East High School and DPS, so that student safety is prioritized moving forward.”

    The lawsuit seeks damages for economic and non-economic losses, including emotional distress, funeral costs, and “the profound grief experienced by the Garcia family.”

    A news conference will be held Wednesday at 7:30 a.m. at the DPS Administration Office Building on Lincoln St. to provide “key details about the lawsuit, the allegations against DPS, and the significance of this case in addressing student safety issues.”

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  • Sam Altman Returns as OpenAI CEO in Chaotic Win for Microsoft

    Sam Altman Returns as OpenAI CEO in Chaotic Win for Microsoft

    (Bloomberg) — OpenAI will bring back Sam Altman and overhaul its board with new directors, a stunning reversal in a drama that’s transfixed Silicon Valley and the global AI industry.

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    Altman is returning as chief executive officer and the initial board will be led by Bret Taylor, a former co-CEO of Salesforce Inc. and director at Twitter before it was acquired by Elon Musk. The other directors are Larry Summers, the US Treasury Secretary under President Bill Clinton, and existing member Adam D’Angelo, the co-founder and CEO of Quora Inc. OpenAI is now working “to figure out the details,” the company said in a post on X, formerly Twitter.

    The reworked board will not be final: its main priority is to select up to nine new directors, said a person familiar with the negotiations who asked not to be identified. Board composition proved to be a major sticking point in negotiations for Altman’s return after his shocking ouster on Friday.

    The decision to restore him to the world’s best-known AI startup marks a victory for biggest backer Microsoft Corp., which worked with fellow investors to reverse Altman’s firing. The two new board members also hold appeal for Wall Street and the Silicon Valley crowd. Summers, a Harvard academic and paid contributor to Bloomberg Television, sits on the board of several startups, including Jack Dorsey’s Block Inc. Taylor is a director at Shopify Inc. and helped steer the sale of Twitter to Musk last year, acting as a calming force.

    Parties are still determining which members — beside D’Angelo, who has been appointed — will stay on the new OpenAI board.

    Altman agreed not to take a board seat initially in order to get the deal done, said the person. It’s likely he’ll join the board eventually. He also agreed to an internal investigation into the conduct that led to his dismissal, another person said.

    OpenAI’s biggest backer celebrated Altman’s return to the helm, after briefly agreeing to hire him on Sunday to start a new in-house research group. Microsoft, whose AI strategy hinges on the startup’s technology, will likely have representation on the new board, certainly as an observer and possibly with one or more seats, one of the people said.

    OpenAI’s earlier board members included D’Angelo, OpenAI co-founder and chief scientist Ilya Sutskever, Tasha McCauley of GeoSim Systems, and Helen Toner, director at Georgetown’s Center for Security and Emerging Technology.

    Read more: OpenAI Negotiations to Reinstate Altman Snag Over Board Role

    The agreement followed four days of high-stakes negotiations, after nearly all of its employees threatened to quit if Altman was not reinstated. Much of the drama played out on X as notable financiers, Silicon Valley honchos and key players from Nadella to Altman himself posted declarations, exchanged messages, liked each others’ posts and otherwise advocated their position. Altman’s rehiring triggered swift congratulations on X from main characters in the saga, including former president Greg Brockman — who said he too is returning to the company — and Chief Technology Officer Mira Murati.

    In a statement Friday that triggered the furor, OpenAI said Altman was dismissed after an internal review by the board found the chief executive “was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.”

    Negotiations for his return reached an impasse on Sunday in part over pressure from Altman and others for existing board members to resign, according to people familiar with the matter. Instead, the board named a new leader — former Twitch CEO Emmett Shear.

    Within hours, most of OpenAI’s 770 employees signed a letter to the board saying they might quit and join Microsoft unless all directors resigned and Altman was reinstated. Among the many who signed the letter was Murati, who had been named interim CEO on Friday, and Sutskever.

    The quick reversal could appease investors and reduce the threat of employees fleeing. But it also raises questions about the path ahead for the ChatGPT maker and other AI startups, which have tried to balance developing artificial intelligence responsibly alongside the need to raise vast amounts of capital from investors to support the expensive computing infrastructure required to build these tools.

    Investors were blindsided by Altman’s removal. Microsoft, which backed the startup with a more than $10 billion stake, had only a few minutes’ advance notice about Altman’s firing. The software giant began working with investors including Thrive Capital and Tiger Global Management to bring him back, according to people familiar with the matter who asked to remain anonymous discussing private information.

    Read More: OpenAI Leaders Tell Staff ‘Get Back to Shipping’ Amid Tumult

    More than any other figure, Altman, 38, emerged as the face of a new era of artificial intelligence technology, thanks to the viral success of ChatGPT. Altman was at the center of the industry’s efforts this year to work with regulators and he met regularly with world leaders, including US President Joe Biden and UK Prime Minister Rishi Sunak. On Thursday, he appeared on a panel at the Asia-Pacific Economic Cooperation conference, attended by other executives and world leaders, to discuss the future of AI and its risks.

    Behind the scenes, however, Altman clashed with members of his board, especially Sutskever, over how quickly to develop generative AI, how to commercialize products and the steps needed to lessen their potential harms to the public, people with knowledge of the matter have said.

    Alongside rifts over strategy, board members also contended with Altman’s entrepreneurial ambitions.

    He has been looking to raise tens of billions of dollars from Middle Eastern sovereign wealth funds to create an AI chip startup to compete with AI accelerators made by Nvidia Corp., according to a person with knowledge of the investment proposal. Altman was courting SoftBank Group Corp. chairman Masayoshi Son for a multibillion-dollar investment in a new business to make AI-oriented hardware in partnership with former Apple Inc. designer Jony Ive.

    The boardroom drama carried echoes of other coups in Silicon Valley history. Apple co-founder Steve Jobs was fired as CEO in 1985 only to return more than a decade later. Twitter co-founder Dorsey was pushed out in 2008 and came back as CEO seven years later.

    –With assistance from Dina Bass, Ashlee Vance, Ed Ludlow and Anne VanderMey.

    (Updates with board deliberations from the second paragraph. A previous version of this story was corrected to reflect Summers’ tenure.)

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    ©2023 Bloomberg L.P.

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  • Cochise County’s Bottom-Up Guide to Election Denial

    Cochise County’s Bottom-Up Guide to Election Denial

    As millions of Americans returned to their jobs this week after the Thanksgiving holiday, several of the elected leaders of Cochise County, Arizona, opted not to do theirs.

    The board of supervisors in this sparsely populated southeastern chunk of the state refuses to certify the county’s midterm-election results. Of course, nothing actually went wrong in Cochise County’s election. Instead, on Monday, the two Republican members of the Cochise County board outvoted its single Democrat to delay certification of the election, missing the deadline. By refusing to complete the process, these two officials chose instead to make a kind of generalized protest against imagined election fraud in Arizona. Their action could mean that Cochise County voters won’t have their ballots counted in the state’s final results.

    Nullifying the votes of some 47,000 people for no reason is certainly a choice—and a nihilistic one at that. These two board members are engaging in a strategy of bottom-up election obstruction, apparently to clog the gears of democracy with enough sand to spread distrust throughout the entire system. Nationally, the Cochise County supervisors’ strategy may prove inconsequential, at least for now. But it’s a perfect illustration of the state of American democracy—and could be a test run of much greater consequence for 2024.

    Even though prominent election deniers lost big in the November polls, in both Arizona and elsewhere, the election-denial movement is still alive, and even thriving, at the state and local level around the country. The “Stop the Steal” blueprint that Donald Trump drew up is there for anyone to follow, in the next presidential cycle and quite possibly beyond.

    Before the midterms, election experts had their eyes fixed on Arizona, and in particular on Cochise County, 200 miles southeast of Phoenix. There, in the home of the Dragoon Mountains and the old frontier boomtown of Tombstone, suspicion of voting machines runs deep—so much so that county officials were demanding a full hand recount of the votes before the election had even happened. (Although all Arizona postelection audits require a small hand-counted sample, a full hand count of the votes would be illegal and, experts say, extremely prone to error.) In the end, the Arizona Supreme Court had to prevent Cochise County officials from doing it.

    Ultimately, Election Day went smoothly in Cochise, and Republicans cleaned house in the county’s results: The GOP gubernatorial candidate Kari Lake and Senate hopeful Blake Masters defeated their Democratic opponents there by 18 and 11 points respectively, even though both lost overall. Still, county GOP leaders wouldn’t take yes for an answer, and they weren’t finished sowing chaos.

    One of the Republican supervisors acknowledged in an interview that delaying the county’s election certification was in fact intended as a protest over the election—not in Cochise, but in Maricopa County, where Republicans claim, without evidence, that machine errors disenfranchised thousands of voters. In other words, the play here is to use local political control in one county to cast doubt on another’s larger and more politically important election—to taint the entire process by contaminating a small piece of it.

    As I reported at the time, Maricopa County did have some technical problems on Election Day. Dozens of tabulation-machine printers weren’t working, despite those machines having been previously tested for accuracy. But voters weren’t turned away from polling sites. Instead, their ballots were dropped in an auxiliary box and taken to the county’s central tabulation center, to be counted along with millions of other ballots. If anyone was disenfranchising Arizonans, it was the state’s GOP leaders demanding that voters not put their ballot in the auxiliary box.

    But all of that is truly beside the point. Certification is not just a formality; the process enables officials to review an election for wrongdoing. Which sometimes happens! Back in 2018, the North Carolina state election board refused to certify the results of a House race, because Republican campaign operatives had engaged in illegal ballot harvesting and tampering.

    But nothing like that went down in Cochise or Maricopa Counties this year. Instead, local GOP officials are choosing to invalidate the votes of their own neighbors in order to express their displeasure with an election outcome. It’s childish. It’s wrong. It seems very illegal. And it’s probably not going to work. On Monday, Secretary of State (and now Governor-elect) Katie Hobbs filed a lawsuit against the board, tweeting that Cochise County “had a statutory duty to certify the results of the 2022 General Election by today.” The judge will hear the suit later today, and may offer a decision as early as this afternoon.

    The most likely outcome is that the judge forces the board to certify the election. “Stop the Steal” zealots have tried the Cochise move before, after all. Earlier this year, commissioners in heavily Republican Otero County, New Mexico, decided not to certify their party primary-election results. That didn’t fly at the state supreme court, which ruled that the commissioners had to do their jobs. (Commissioner Couy Griffin notably still voted no, announcing that his vote was “based on my gut feeling and my own intuition, and that’s all I need.”) But if the court doesn’t force Cochise officials to change their ways, the secretary of state’s office could, in theory, tally the rest of Arizona’s votes without the county’s included. The irony is that, in a purely electoral sense, this would be great news for Democrats, potentially flipping a U.S. House seat from red to blue.

    Something that became very clear in 2020 is that America’s election system relies not on spelled-out rules and regulations, but on human beings acting honestly. Before 2016, the certification process was not used as a weapon to fight back against a disappointing result. “That’s not how healthy democracies function,” Tammy Patrick, the program CEO for the election center at the National Association of Election Officials, told me. And American democracy is only as healthy as its weakest link.

    What happens next in Cochise County may have little significant effect on the rest of the country. But Cochise serves as a reminder that the election-fraud myth persists. And in places where its believers have unchecked power, they will do their utmost to flex it.

    The hope was that, after major midterm losses and continued rebukes from the courts, the election-denial movement would peter out—that Stop the Steal types might simply grow tired of failing. But if Trump is a viable candidate for president in 2024, you can expect him to sing from the same songbook he used in 2016 and 2020. Other candidates will amplify those lies, too, if they can benefit from doing so. Whether election denialism will survive independently of Trump is hard to anticipate. But Republicans “have seen that while it may not be the way to gain office, it is certainly the way to drive donations and fundraising and elevate your stature in the party,” Patrick said.

    Cochise is a useful stress test for America’s electoral system “in terms of demonstrating the continued dangers to our democracy”—and what can be done about them, Rick Hasen, the director of the Safeguarding Democracy Project at UCLA, told me. Congress should pass reforms to the Electoral Count Act, Hasen said. States can also try to prevent what’s happening in Cochise County from recurring in 2024. Colorado passed legislation this year clarifying its rules about certification. But state leaders are similarly well positioned to make the waters of democracy muddier. In 2021, Arizona Republicans tried and failed to pass legislation that would allow the state legislature to reject the results of an election it didn’t support. An upcoming Supreme Court decision on the authority of state legislatures in administering elections will be incredibly consequential to any future election-subversion efforts.

    Over the past six years, millions of people in this country have been encouraged by political leaders on the right to see themselves as the real Americans—the nation’s true rulers—who are in danger of being cheated out of their political inheritance by voter fraud on the left. They’ve been trained to respond to electoral losses with deflection, conspiracy, and dishonesty. They don’t need Trump around to keep doing that.

    Elaine Godfrey

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  • Hackers Aren’t The Only Unseen Enemy Behind Cyber Attacks

    Hackers Aren’t The Only Unseen Enemy Behind Cyber Attacks

    Opinions expressed by Entrepreneur contributors are their own.

    The booming numbers of cybersecurity threats have compelled every C-suite executive and board members to pay closer attention to their cybersecurity hygiene. However, they don’t share the same lens while watching their information security posture. And here’s where a disconnect arises.

    A recent global survey of C-suite executives indicates that around 71% of board members have severe gaps in knowledge regarding cybersecurity and threats their organizations face.

    Whether we talk about data breaches compromising sensitive business information or exploiting consumer identities, executives and heads of information security (InfoSec heads) are already geared for the worst. But the senior management isn’t sure why they need to spend more on their cybersecurity budget.

    While InfoSec heads often emphasize security and risk management as a part of their job, board members often link cybersecurity as a part of their business but hardly consider it as one of the foundations of modern business success.

    Related: Learn How to Protect Your Business From Cybersecurity Risks

    As a result, their communication mismatches and challenges them to translate cybersecurity risks and potential business implications.

    In a nutshell, no matter how much they’re aware of cybersecurity risks and increasing threats, most board members can’t understand how cybersecurity and cutting-edge technologies translate into the underlying business risks.

    So, what needs to be done from an executive’s end to translate the risks? Let’s figure it out.

    Communicate risks of cybersecurity through effective storytelling

    The way you interact with your board leaders makes all difference. And effective storytelling is undoubtedly the best way to convince them.

    Though storytelling isn’t a new concept since humans have used it for centuries to convey a strong message, executives can leverage its true potential to help process crucial information.

    Stories have been a part of our lives from childhood, and various studies suggest that the human brain is wired for stories. And a compelling narrative could eventually evoke an emotional connection and change behavior and attitude.

    Now, while talking with your leadership while utilizing storytelling, you must ensure that you’ve done your homework to support your story to leave an impact. Otherwise, it would be good for nothing.

    Share some data and insights, and talk about the latest tools and technologies that can be incorporated into your processes that could make a huge impact. Moreover, depicting your competitor’s cybersecurity best practices can also help impact your board leaders.

    Also, you could use real-life examples of organizations that ignored their overall cybersecurity hygiene, which resulted in financial and reputational losses. This could be a great way to reinforce your opinion besides the story you crafted.

    Related: Harness the Power of Storytelling to Transform Your Business for the Better

    How to prepare for your conversation with board members

    As a board member, you need to be sure enough that you understand your board’s mindset to connect with them at an individual level. And it would be great if you could first know how they look at the importance of cybersecurity and threat management for the organization.

    Once you understand their perspective, it’s time to create your steps of action to convey your message and ensure they’re convinced that cybersecurity is an absolute necessity and not a luxury for your business growth.

    Here’s what you need to do before beginning a conversation with your board members:

    • Educate them about the latest compliances: Most of the time, your senior management isn’t aware of the latest data privacy and security compliances. And this could be the reason they aren’t in favor of stretching their cybersecurity budget. You must educate them regarding the latest compliances and the consequences of non-compliance. One great example is non-compliance with the General Data Protection Regulation (GDPR), which eventually lead to hefty fines and reputational damages.
    • Board member’s background research: Researching the background of your board members could be the first step to understanding their mindset and approach toward overall business growth. Analyze their past experiences, educational background and personality to ensure you hit the right chord while convincing them about cybersecurity and underlying risks.
    • Learn their goals and priorities: Another crucial step is to learn about your leader’s priorities and goals. Do they often think about organizational growth without increasing the overall security budget? Do they keep cybersecurity as a part of their business but not a priority? Is there any way they could relate to organizational growth through cybersecurity best practices for customers and employees? Once you’ve figured out these questions, the next step is to portray your version of information security and its direct impact on your business growth. And for this, you can leverage the latest stats, competitor data and data related to the latest breaches.

    And ultimately, your C-suite executives, like everybody else, would be convinced that cybersecurity hygiene is undeniably a foundational aspect of their business. It’s your responsibility to ensure you’re on the right track and narrating the right story through which they’ll relate and act.

    Related: Cybercrime Could Cost the World $10.5 Trillion Annually by 2025

    Final thoughts

    The modern executive’s role is undoubtedly predominantly people-focused. And getting trapped between highly technical IT staff and leadership that focuses on growth while making cybersecurity-related decisions could be an uphill battle.

    However, the key to business success without compromising security lies in incorporating cutting-edge technology that fosters growth, builds customer trust and maintains compliance.

    And a modern executive must navigate business success by convincing board members regarding the need for cybersecurity best practices to jump on the digital transformation bandwagon.

    Rakesh Soni

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