This week, the
Financial Times
analyzed a key challenge that some CEOs are facing in the aftermath of COVID-19: after promising to treat employees well (the “S” in ESG), these same leaders are forced to announce layoffs. But the FT points out that ESG principles can still apply to companies who are trying to provide support to those who lost their jobs, as well to those who keep them. As an example, Airbnb offered laid-off employees 14 weeks of pay, an Airbnb laptop, equity stakes, job placement services and health insurance for a year.
Shareholder pressure tends to come when a stock is down, but it can come when it’s on the upswing as well. Since a COVID-19 trough in March, SAP’s stock has steadily risen. Its balance sheet and overall performance looks solid. But that has not prevented investors from agitating ahead of this year’s annual general meeting. Owners of Europe’s largest software company have expressed concern about the turnover in the executive suite and boardroom.
Stay safe and have a great holiday weekend,
Michael
