FCC Chairman calls for investigations into Disney’s diversity, equity, and inclusion practices

The Federal Communications Commission chair said Friday that he has launched an investigation into Disney’s diversity, equity and inclusion program in his latest attempt under the Trump administration to stop such efforts.

In a letter to Disney’s CEO Robert Iger, chairman Brendan Kerr said the company’s program to increase job diversity and promote racial-based affinity groups appears to violate equal employment opportunities regulations.

“Disney wants to ensure that virtually all discriminatory initiatives will be completed, not just the name,” Kerr said in a letter sent Thursday. “In another case, Disney’s actions – whether they’re ongoing or recently terminated, we want to determine whether they’re always in compliance with applicable FCC rules.”

A Disney spokesman said the company is reviewing the FCC letter. “We look forward to being involved with the committee to answer that question.”

Veteran Republican regulator Kerr began his tenure as FCC chair in January by launching a drastic campaign to scrutinize the media, sought to eradicate left-leaning bias and policy allegations that were corned by the president.

Last month he began a similar diversity and inclusion investigation into Comcast, the parent company of NBCuniversal. Kerr also said the agency’s merger reviews will include a survey of the company’s DEI program.

The investigation continues Presidential Order Trump was banned from “illegal and immoral” DEI programs in the federal government on his first day. A day later, Kerr announced that he would be closing his promotion of diversity and equity in the FCC’s strategic planning, budget and economic reporting.

It is unclear whether the FCC, which normally serves as a cable television watchdog, distributing licenses to broadcast television and radio stations, has the power to punish media companies for its diversity initiative. Kerr argues that a wide range of “public interest” standards can be applied to scrutiny companies such as Disney, which owns ABC and ESPN, and Disney, such as television stations around the country.

FCC experts said Kerr’s investigation could be challenged in court.

“It’s about bullying and threats,” said Andrew Schwartzman, a senior advisor to the Benton Institute for Broadband Society. Kerr’s most powerful tool is his vote on the committee to approve mergers and acquisitions, he said.

Trump nominated Kerr has launched an investigation since he chaired several news outlets, including PBS and NPR, accused him of left-leaning political bias. He investigated an interview that CBS’s “60 minutes” was conducted with former vice president Kamala Harris and released an investigation by San Francisco radio station KCBS regarding reports of immigration enforcement measures.

Kerr publicly agreed to the administration’s promise to cut regulations significantly, chase big technology, and punish television networks for political bias. Kerr is restructuring independent bodies, expanding its duties and using it as a political weapon of rights, Telecommunications lawyers and analysts said.

Brooks Burns Contributed with a report from Los Angeles.

Source: www.nytimes.com

Tesla’s Chairman warns that Elon Musk may step down if shareholders reject $56 billion compensation package

The chairman of Tesla has suggested that Elon Musk might leave the company if shareholders do not support his $56 billion (£44 billion) pay package, implying that Musk has other opportunities to explore. Despite the vote next week on the CEO’s compensation deal, Robin Denholm emphasized that the decision is not solely about money, as Musk will still be one of the richest individuals regardless of the outcome.

Denholm mentioned that if the June 13 vote does not go in Musk’s favor, he could potentially depart from Tesla or reduce his presence at the company. In 2018, investors approved a similar compensation plan for Musk, which was later invalidated, prompting the board to seek investors’ approval once more.

Denholm emphasized the importance of Musk’s time and energy, stating that while he has many ideas and potential endeavors, Tesla and its owners should be his primary focus. Concerns have been raised by some investors about Musk’s engagement with Tesla given his involvement in other ventures like SpaceX, xAI, and X.

Denholm clarified that the compensation package includes a provision requiring Musk to hold the Tesla shares he receives for five years before selling any of them. With Musk’s net worth at $203 billion, he is currently ranked as the third wealthiest person globally, according to Bloomberg.

ISS and Glass Lewis have advised shareholders to vote against the proposed pay package, citing excessive payouts. Despite differing opinions among major investors, Denholm stressed the need to uphold the 2018 agreement to ensure Musk’s continued dedication and commitment to Tesla.

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In a bid to streamline operations and facilitate growth, Denholm proposed relocating Tesla’s legal domicile to Texas, highlighting the state’s favorable corporate laws and potential for innovation. She noted that Texas legislators and courts are well-equipped to handle Tesla’s future endeavors effectively.

Analyst Dan Ives believes that while Musk is unlikely to leave Tesla entirely, a rejection of the compensation package could lead to his stepping down as CEO and reducing his involvement with the company over time.

Source: www.theguardian.com