CEO Daily: Monday, May 11th

By John KellContributing Writer and author of CIO Intelligence

“I give it 100 percent until the buzzer sounds,” says DuPont CEO Ellen Kullman. The buzzer sounds on Wednesday, when the epic battle between Kullman and activist investor Nelson Peltz comes to a vote. Both sides acknowledge it is close.

At Fortune, we believe the activists have the public relations advantage in these fights. So months ago, we asked DuPont to do something most companies won’t, and give our reporter, Stephen Gandel, full access to Kullman and other executives as the battle unfolded, so he could tell the inside story. We are publishing Gandel’s account in full today, because we think it sheds important light on Wednesday’s showdown. “The activists can make any assertion they want,” Kullman told Gandel. “If I say something, as the CEO of a public company, it has to be true or I go to jail. I don’t think the activists are held to the same level of scrutiny.”

What makes the DuPont battle interesting, as Joe Nocera pointed out this weekend, is that Peltz is more responsible than the average activist, and DuPont is better run than the average company. We’re all for activists taking down poorly run companies; but we’re less certain why this sort of bruising battle is in the long-run interests of shareholders, employees or the U.S. economy. Kullman is struggling mightily to show that big companies like DuPont can still be engines of innovation, and she is devoting significant resources to research and development in the process. The activists seem less interested in R&D, and more interested in raising cash now — not three, five, or ten years down the road. “DuPont’s research lab in terms of chemistry, is one of the few corporate labs that is left,” Harvard Business School professor Jay Lorsch told Gandel. “If it was up to the activists, there would be none.”

But it is the shareholders who get to decide, and they will in two days. In the meantime, we hope you’ll read this important story.

Today’s other stories below.

Alan Murray

@alansmurray

alan.murray@fortune.com

Top News

• How DuPont went to war

“We are a great company. And we have a strong story." Three and a half months after DuPont CEO Ellen Kullman said those words to Fortune's Stephen Gandel, it appears billionaire investor Nelson Peltz's narrative about DuPont's underperformance could be on the verge of winning. Kullman has suffered a series of setbacks in the days leading up to the proxy vote, set for DuPont’s annual shareholders meeting on May 13. Fortune dives into the news, which could see Peltz win four seats on DuPont's board, potentially bolstering his call to see the company broken up into parts Fortune

• China cuts interest rates again

Over the weekend, China has cut interest rates for the third time in six months. That move was seen as a bid to lower companies' borrowing costs and boost an economy that is headed for its worst year in a quarter of a century. Analysts welcomed the move, which came just a few days after weaker-than-expected April trade and inflation data, which highlighted how the Asian nation's economy is under great pressure from soft demand at home and abroad. Reuters

• Banks mull Wall Street defense

Senior executives from seven of the biggest U.S. banks held a meeting on March 31 to discussing the upcoming election cycle and how the industry can best counteract what they view as false and damaging statements about large banks, WSJ has reported. Wall Street has long been a popular punching bag for politicians, but banks are finding both Democrats and Republicans have been critical of the industry. Though the banks haven't launched a new ad campaign of lobbying effort, a lunchtime gathering held on the 51st floor of the Bank of America Tower in New York City signals the industry could soon set out to tell their side of the story. WSJ (subscription required)

• SoftBank taps possible CEO successor

SoftBank CEO Masayoshi Son has anointed Nikesh Arora, a former Google executive who has been heading the company's investment arm in California, as representative director and president of SoftBank. Son said he can't yet comment on when and in what form Arora would take the reins, though he said the new president was the primary successor candidate. With the announcement came some admiral candor from Son: “I won’t be retiring yet, and Nikesh may pass away tomorrow in a car accident." WSJ (subscription required)

• Madoff aide dies before sentencing

Frank DiPascali, the finance chief for convicted Ponzi scheme operator Bernie Madoff, has died from lung cancer. DiPascali, who was 58, served as the federal government's star witness against other Madoff employees in a scam that stole billions from thousands of investors. Madoff is serving a 150-year federal prison term after he pleaded guilty to fraud and other charges without standing trial after the scheme collapsed in late 2008. But DiPascali died on May 7, before sentencing for his own possible 125-year jail term. USA Today

Around the Water Cooler

• There is such a thing as bad publicity

The makers of Bud Light found themselves on thin ice with the public as questions were raised about the taste of this slogan printed on a large number of the beer's bottles: "The perfect beer for removing 'no' from your vocabulary for the night." The media had a field day, with many critically writing that the statement could be an endorsement of rape culture. Other major brands have recently missed the mark in their own ways, including Belvedere vodka, Hyundai, and DiGiorno Pizza. Fortune

• A con man and his mentor

When a Ponzi scheme collapses, it can take a while to fully understand how the fraudulent organization was run and who exactly knew what about defrauding investors. Bloomberg dives into one interesting case involving David Smith, who U.S. prosecutors alleged laundered more than $200 million of investor money. But Smith claims he went from a failed forex trader to a criminal by putting all his hopes in one friendship. His mentor, who heads the largest forex-trading school in the U.S., still walks free. Bloomberg

• Firms rise up against Bloomberg terminals

Can startup Symphony see a promotion of its own from ambitious upstart to the new gold standard of the financial industry? Some financial firms are betting that yes, it can, in hopes it will save them a lot of money. Since the early '90s, Bloomberg has dominated the financial communications market, though its terminals cost clients more than $20,000 a piece per year. They are the industry standard when it comes to secure instant messaging, though firms hate the exorbitant price. Symphony could upend the market, though it remains to be seen if it will. Fortune

• A prized catch: Gaming "whales"

What do mobile-game makers Zynga, King Digital and Glu Mobile all have in common? They are all going after the same prize: so-called "whales" who plunk down $50 to $100 a month on extra turns, special powers and other virtual goodies in their favorite mobile apps. The importance of this sliver of the market has increased as mobile users pay for fewer apps, so game makers have become more reliant on those willing to pay to play. The in-game purchasing business model is still big business, expected to total $23.4 billion world-wide this year, though gaming developers have faced challenges churning out consistent hits. WSJ (subscription required)

Fortune's 5 things to know today

McDonald's turns 75, earnings and tech conferences — 5 things to watch in the week ahead. Today's story can be found here.