Good morning.
Since it is Friday, some feedback. I received a lot of responses to my post on ex-CEOs becoming executive chairs—and not one favored the idea. A sampling:
“You show me an exec chair, and I’ll show you a person who is unwilling to let go.”
—N.S.N.
“It’s an interregnum that confuses the kingdom.”
—E.G.
“I like to see the buck stop at one place. No [second] guessing.”
—R.D.
And here is what former Aetna CEO Ron Williams posted on LinkedIn in response:
“I have been a CEO, chairman and CEO, executive chairman, independent chairman, and lead director and board member. My view? The executive chairman role should be time limited. In my case I concluded that two people cannot occupy the same space and make the same decisions.”
So if we all agree, why can’t we just stop the practice (or limit to a six month transition)? A couple of correspondents suggested a reason: The executive chair position is a convenient excuse for maintaining an oversized pay packages. One more reason to end it.
Separately, we are seeking nominations for this year’s Impact 20 list—our effort to highlight startups that are using their business superpowers to change the world for the better. We’ll be looking for evidence that the company has had an impact in remediating a societal problem or meeting an unmet need, as well as evidence that its business model can assure long-term success. You can use this form to submit your own or someone else’s company. Email Matt Heimer and Erika Fry at impact20@fortune.com with questions. Or as always, feel free to reach out to me.
You can find the most recent list here. It’s a testament to the power of a profit-making business models.
More news below. Happy Friday.
Alan Murray
@alansmurray
alan.murray@fortune.com
TOP NEWS
No subs
X owner Elon Musk has converted just 0.025% of his 155 million-strong following on the platform into paying subscribers, according to internal data obtained by Fortune. Several other high-profile creators have fewer than 5,000 paying subscribers each. Content creators can sell subscriptions to exclusive content, as the social media platform tries to create more revenue streams for super users, but “subscriptions in its current state are a bust,” one source at X says. Fortune
Pay cuts
Retailer Walmart is cutting starting pay for some new employees, with those working to facilitate online orders now earning a dollar per hour less than what they would have made several months ago. Walmart says it made the change to ensure consistent wages for new hires, but the decision could indicate a looser labor market, coming after months of wage hikes at America’s largest private employer. The Wall Street Journal
iPhone bans
China is planning to extend its ban on iPhone use to those working at state-owned companies, following an earlier decision to bar government officials in sensitive departments from using Apple’s device. The iPhone is wildly popular in China, yet Beijing is trying to limit the use of foreign technology (like Tesla cars) in part due to espionage fears. Apple shares are down almost 7% in the last two days, wiping $200 billion from its market capitalization. Bloomberg
AROUND THE WATERCOOLER
Commentary: The authors of Section 230: ‘The Supreme Court has provided much-needed certainty about the landmark internet law–but A.I. is uncharted territory’ by Ron Wyden and Christopher Cox
A tale of 2 housing markets: The red-hot bottom and ice-cold top by Lance Lambert
Goldman Sachs warns that Russia and Saudi cuts could send oil prices above $100 a barrel by the end of 2024, just in time for Election Day by Christiaan Hetzner
South Korean billionaire founder was jailed for insider trading—but he has still seen his fortune leap $4.5 billion thanks to the EV rally by Eleanor Pringle
Britain is among the least work-oriented countries in the world—but that may not be enough to explain its flat-lining productivity by Prarthana Prakash
This edition of CEO Daily was curated by Nicholas Gordon.
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