When Blackstone researches a company before a deal, it brings in not only financial experts but also HR mavens.  

Every company Blackstone considers investing in gets evaluated for its financial performance, growth potential and leadership—the personnel that should, in theory, be shepherding that company toward a brighter future and a higher multiple. 

“We think about succession planning day one,” Blackstone senior managing director Courtney della Cava said at Fortune’s COO Summit on Monday. 

Della Cava is an influential figure inside Blackstone, which is the world’s largest alternative asset manager with $1 trillion in assets under management. After 10 years at the consulting giant Bain & Company and a career in HR at the highest levels of corporate America, della Cava joined Blackstone in 2021 to lead hiring across its more than 250 portfolio companies. 

During her tenure she turned talent evaluation from an art that relied on gut feelings and intuition to a precise science. It was the exact sort of transformation that appeals to investors like Blackstone who are eager to quantify every aspect of businesses they evaluate. Human resources became just as critical, and carefully appraised, in an investment thesis as projected cash flows or market opportunity. 

When evaluating a deal, della Cava starts with imagining what kind of return on investment she’s like to see: “If this is the point of departure, when we sell it in 12 months or 18 months, what do we hope [the value] will be at the end?” she said. “And then we work backwards to the people.”

Della Cava focuses on two roles in particular: CEOs and board chairs. “Those are the two anchors for a deal,” she said.

One of the CEOs that della Cava and Blackstone recently selected to lead a portfolio company was Howard Hochhauser, CEO of Ancestry.com. Hochhauser stepped into the top job in February, after having served in a dual role as CFO and COO and a brief stint as interim CEO from October 2017 to May 2018. 

Even someone like Hochhauser, who was a veteran executive, said he was surprised by how all-encompassing the corner office could be. 

A CEO at a Blackstone portfolio company is tasked with running the business but also with planning for a future exit—whether that be an IPO or another sale—which adds another layer of consideration to their work. 

“Everybody wants a successful exit,” Hochhauser said. “To do that, you have to grow the company. And so now it’s spending 110% of my time on growth.”

The exit plan is never far off from Blackstone’s plans 

“We have opportunities to seize and also, ultimately, when we go to exit, they want a good, strong leadership team that’s going to sustain,” della Cava said. “So I wish it were just identifying a CEO—one and done. But what makes it fun is the end to end ecosystem.”

This story was originally featured on Fortune.com

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Brooks Running CEO Dan Sheridan filled many roles in his 27 years at the running shoe company—including chief operating officer—before he took the reins last year. One thing that’s helped him ascend is an ability to take a holistic view of the company’s needs.

COOs are typically brilliant at technical things but also need to understand how other functions play into a company’s overall success. So yes, a running shoe company has to nail supply-chain and e-commerce logistics, but it also has to get customers interested in its gear and make footwear that is competitive in today’s running shoe wars.

A COO is, of course, really in the thick of things operationally, helping him or her know a company intimately. A challenge for any aspiring CEO is being able to take a higher-level view without losing that deep knowledge of how the company runs, Sheridan told the Fortune COO Summit in Scottsdale on Monday. “I use this saying with my team: ‘Keep your head above the clouds, but keep your feet in the mud,’” he added.

“In that transition from COO to CEO you get your feet dirty at times, and you’re really trying to see above the clouds,” he added. He advised any COOs in the audience with CEO ambitions to try to envision their company’s needs from many perspectives, and shared leadership advice he was given by Berkshire Hathaway: “It’s understanding your biases and then really thinking long term as you move into the CEO role.”

As Sheridan steers Brooks through a period of enormous change, that long-term view is becoming ever more important. Brooks, which took in about $1.6 billion in revenue last year, could become a $4 billion brand, according to Sheridan.

Best known as a maker of shoes for serious runners, Brooks is far behind rivals like New Balance in offering more casual wear. Brooks also faces stiff competition, from newer sneaker brands like On and Hoka. What’s more, Brooks gets its sales primarily in North America.

“We’re mostly footwear, but we now have permission from the consumer to expand this brand,” he said.

All this change means Brooks operational prowess will be tested.

“We want to assort our brand wherever the greatest retailers are that are focused on running, and that creates complexity at an operational level, because we don’t own the systems of these retailers. We don’t own the distribution networks, the transportation networks,” he said. “So what we’ve had to do is build an operation that really taps with agility into all of these partners around the world.”

This story was originally featured on Fortune.com

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• Starbucks is hiring two “global coffee creators” to travel the world and make TikToks—and it’s music to the ears of social-media-obsessed Gen Z. The role pays up to $136,000 annually, is completely remote, and doesn’t require a college degree or years of work experience. It’s a perfect match for young workers who could use the financial security, and value flexible schedules above all else. 

Gen Z’s dream job is being actualized in real time—working remotely to travel the world and make fun TikToks, while loading up on coffee and a six-figure salary. Starbucks is looking to hire two “global coffee creators” to jet-set on planes and enhance its social media storytelling. But only one position is up for grabs to the public.

“For one epic year, you’ll travel the world—think Milan, Tokyo, Colombia, Dubai, Costa Rica—and more, capturing the vibes, culture, and people behind every Starbucks experience,” the job listing says.

The $111 billion coffee chain unveiled the job posting late last month, hoping to lock in two “coffee-obsessed” creators for the next year. Interested applicants should shoot their shot soon—the posting is set to expire on June 13, and is sure to attract a strong pool of talent vying for the gig.

Annual pay ranges anywhere from between $80,100 and $136,000, and the role is eligible for a bonus. Since the global coffee creators will be jet-setting to 10 to 15 Starbucks locations across the world—paid for by the coffee giant—it’s a chance to explore creatively on a comfy budget. There are a few qualifications needed to get the job, but a huge part of it is bringing the vibes. 

“Your mission? Help us show the world why Starbucks coffee hits different,” the posting reads. “If storytelling, travel, and coffee fuel your soul, this is your dream gig.”

What it takes to be Starbucks’ global coffee creator

Becoming a Starbucks global coffee creator doesn’t require a master’s degree or a huge social media following. 

The coffee business has a few general requirements for the job. Applicants must be 18 years or older with a high school diploma or equivalent experience—no work experience or college degree required. They also must be U.S. residents with a valid passport for the duration of the gig: August 2025 to July 2026. 

The strongest candidates will also have a bit of physical strength. Traveling internationally will require a lot of legwork—whether that be getting their steps in while in Milan, or navigating the lush landscape of Costa Rica. Candidates need to be able to bend, lift, and carry their content equipment while they’re on the road for the next year. They also need to understand TikTok trends and adapt accordingly. 

The job posting notes that there are a few pluses that will stand out in applications: talent with strong interpersonal and cross-cultural skills, who can work independently and create their own schedules. 

The candidate also needs to be comfortable on camera and have strong storytelling skills to capture the local culture and community of international Starbucks locations. On a technical level, applicants should also be familiar with TikTok and Instagram creation alongside editing tools like Photoshop, InDesign, Premier, and Final Cut Pro. 

Why it’s the perfect job for Gen Z 

Starbucks has been on a hiring spree, posting high-paying roles like that of airplane pilot. But becoming a global coffee creator may be the better route for Gen Z to score a six-figure role straight out of high school.

Plus, because the job requires workers to jet-set from Milan to Tokyo, working in-office is out of the question. The gig is fully remote, which is music to the ears of Gen Z; after all, 40% of the young generation would suffer a pay cut in exchange for flexible schedules. 

Starbucks’ new posting also values the exact thing young people are criticized for: being chronically online. Gen Z is turning to TikTok influencers as their voice of reason over experts, and they’re so addicted to the social media app that nearly half wish it didn’t exist. Becoming a TikToker is even the second most sought-after career for the bright young minds of tomorrow. This is a rare opportunity to turn a time-sucking habit into a six-figure job with benefits.

This story was originally featured on Fortune.com

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The arrest of a high-profile union leader during ICE protests last week has prompted an outcry across labor organizations across the U.S., and could mark the beginning of a new escalation between organized labor and President Donald Trump in the war over immigration. 

David Huerta, the president of the Service Employees International Union of California (SEIU), was taken to the hospital on Friday where he was treated for injuries sustained during his arrest by ICE, according to a statement from the SEIU. He was released from federal custody on Monday, on a $50,000 bond, and charged with conspiracy to impede an officer. If convicted, he could face six years in prison. 

The SEIU did not immediately respond to Fortune’s request for comment. 

Huerta’s arrest took place during protests against ICE, when demonstrators in Los Angeles took to the streets to protest the immigration raids of garment workers. The Trump administration has long promised lofty deportation goals, and has set a quota in May of arresting 3,000 immigrants a day. The ICE raids in California are part of that new push. In response to the protests, President Donald Trump has ordered up to 4,000 National Guard troops and another 700 Marines to the city, over the objections of state officials. California has sued over the move, saying it violates state sovereignty. 

Huerta’s arrest has prompted several unions across the U.S. to condemn the administration’s actions, and may prove to be a turning point in the relationship between organized labor and the Trump administration. In his campaign last year, the president made inroads when it came to winning the support of union members, if not the unions themselves, and major unions like the Brotherhood of Teamsters chose not to endorse any candidate. But the actions of ICE in Los Angeles, and Huerta’s arrest, have prompted an outpouring of support from organized labor.    

SEIU President April Verrett released a statement after Huerta’s release on June 9, condemning his arrest by ICE, their immigration crackdown in Los Angeles, and Trump’s decision to send in the National Guard. “[T]his struggle is about much more than just one man. Thousands of workers remain unjustly detained and separated from their families,” she wrote. “At this very moment, immigrant communities are being terrorized by heavily militarized armed forces. The Trump regime calling in the National Guard is a dangerous escalation to target people who disagree with them. It is a threat to our democracy.”

The AFL-CIO, the largest federation of unions in the country, wrote in a statement on June 7: “As the Trump administration’s mass deportation agenda has unnecessarily targeted our hard-working immigrant brothers and sisters, David was exercising his constitutional rights and conducting legal observation of ICE activity in his community.”

After Huerta’s arrest, the American Federal of State, County and Municipal Employees wrote on June 8: “This is yet another example of the reckless and dangerous way deportations are being carried out, targeting hard-working community members. They are now trying to silence union leaders who dare to speak up.”

Several California unions came out in support of Huerta, including the California Teachers Association and SAG-AFTRA. 

Huerta’s arrest and the ICE raids in Los Angeles have also counter demonstrations across the country over the past few eays. “Make no mistake, history is being written right now,” said Abel Fuaau, a district representative for the International Union of Operating Engineers, Local 39, at a rally in San Francisco on Monday, KQED reported. “And as the old Union hymn goes, which side are you on? Who are you with?”

At another rally in New York City, Manny Pastreich, president of SEIU’s 32BJ chapter, told the assembled crowd: “We must fight back. We reject these attacks on our communities and demand the immediate release of our union brother David Huerta.”

This story was originally featured on Fortune.com

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• Paramount Global is laying off 3.5% of its staff, impacting hundreds of employees. The entertainment giant laid off roughly 2,000 workers last year. It’s in the process of trying to get approval for its merger with Skydance Media.

Paramount Global is downsizing its staff once again.

The entertainment giant, which owns CBS, Comedy Central, MTV, and more channels and properties, announced plans to reduce its U.S. headcount by 3.5%, which will impact hundreds of jobs. The company blamed the economy and decline in traditional pay-television revenues for the action.

“We recognize how difficult this is and are very thankful for everyone’s hard work and contributions,” the company wrote in a memo to staff. ”These changes are necessary to address the environment we are operating in and best position Paramount for success.”

Paramount, as of December, had 18,600 full- and part-time employees globally. (The company does not break that number down between domestic and international workers.)

This is the second (or third, depending on how you count) round of layoffs for the company in the past year. Last August, Paramount announced plans to cut 15% of its workforce, which impacted approximately 2,000 workers. The following month, the second round of those cuts occurred.

The company also laid off 800 workers last February, the day after it saw record Super Bowl ratings.

The cuts come as Paramount is seeking regulatory approval for its proposed merger with Skydance Media. The company has also made a controversial $15 million offer to settle a lawsuit Donald Trump filed last year over perceived “illegal” edits to a 60 Minutes interview with former Vice President Kamala Harris. Trump is seeking $20 billion in a suit that most legal experts have said he had no chance of winning.

Paramount’s decision to attempt to settle the case led to the departures of Bill Owens, longtime 60 Minutes executive producer; and Wendy McMahon, president of CBS News and Stations.

This story was originally featured on Fortune.com

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– Taking the shot. Technology is rapidly changing sports—from mobile sports betting to the fan experience on the ground. One model for the high-tech future of the fan experience is in Los Angeles, at the 1-year-old Intuit Dome.

Halo Sports and Entertainment, owned by LA Clippers owner and former Microsoft CEO Steve Ballmer, opened the facility last year. Longtime Clippers exec Gillian Zucker became Halo’s CEO after its launch. She told my colleague Kristin Stoller at Fortune’s COO Summit in Scottsdale, Ariz., yesterday about implementing tech—including facial recognition—throughout NBA fans’ experience.

Fortune

The Intuit Dome opened with an atypical ticket policy—requiring visitors to have their own tickets on their own phones. Without that change, much of the experience Halo wants to build wouldn’t be possible. When one person scanned four tickets on behalf of their group, the company was missing out on information about those other three customers or fans, Zucker says. “Everybody wishes they could know everything about their customers,” she says. “We essentially [knew] 25% of the people who are coming in.”

That friction has taken some getting used to for fans, but it gave Halo more information, paving the way for hyper-personalization. Its tech tracks decibel levels at each individual seat—allowing the Clippers to award the loudest fan in the arena at each game. Emerging tech also allows visitors to look at a screen when they enter and be greeted, by name—with every fan seeing something different. “It’s exciting enough that it gets people to engage with their face ID,” Zucker says.

While that might sound like a lot of personal data being recorded just for attending a basketball game, Zucker argues that consumers are comfortable with tech—when it’s not called “facial recognition.” When asked about that technology, they say, “I want nothing to do with it,” Zucker says. “We say, how do you feel about Clear? They say, ‘I love Clear,'” she says.

Emma Hinchliffe
emma.hinchliffe@fortune.com

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Good morning!

Workers are feeling the burden of economic uncertainty, and it’s leading them to become increasingly less hopeful about their jobs—especially if they’re just starting out. 

The share of employees overall who reported having a positive six month outlook fell to 44.1% in May, down from 45.8% the previous month, according to new data from job platform Glassdoor’s Employee Confidence Index. That’s an all-time low since the index first started tracking the metric in 2016. The downward trend is largely being driven by entry-level employees; the share of confident employees within that cohort dropped from 44.1% to 43.4%. By comparison, the portion of confident mid- and director-level employees increased by 0.2% and .06% over the same time period.  

“Entry level workers are feeling the brunt of a low-hiring job market and are finding it hard to get onto the career ladder at all, which is both a challenge and also very different from the experience just a few years ago,” says Daniel Zhao, lead economist at Glassdoor. 

The confidence dip for entry-level workers is largely due to economic uncertainty, according to Zhao. Mentions of layoffs were up 9% on Glassdoor over the last month, and have increased 18% over the past 12 months. Discussions of macroeconomic impacts also jumped 17% in May compared to the month before, signaling that these topics are weighing heavy on anxious employees. 

“There has been this steady rise in layoffs, which combined with a low hiring environment and the lack of a reset period for workers, is causing this kind of cumulative stacking effect where [it’s] just bad news after bad news and it’s really taking its toll on workers,” says Zhao. 

Employee confidence in government and public administration remains the lowest of any industry, thanks to widespread staffing cuts from the Trump administration and Elon Musk’s Department of Government Efficiency. Only 34.5% of employees in that sector reported a positive six-month outlook in May. By comparison, that number was 49% in November of last year.  

Whether or not employees change their perspectives on the future will largely depend on how the labor market shapes up throughout the rest of the year, and whether or not companies start hiring again. However, if the economy stays sluggish or continues to weaken, as some forecasts are expecting, Zhao says employee confidence is likely to fall even further.

“There is this cumulative stacking effect that people feel when there’s just bad news after bad news, and it’s really taking its toll on workers.”

Brit Morse
[email protected]

This story was originally featured on Fortune.com

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• Beijing warned the practice of selling new cars with zero miles at a sharp discount in the used car market is just the latest example of “involution”, when domestic companies drag themselves down collectively in a race to the bottom.

China’s ruling Communist Party has warned domestic carmakers to stop using sales-boosting tricks—or risk triggering a vicious cycle that could drag down the entire industry.

On Tuesday, the CCP organ People’s Daily took on the practice of selling new cars as used on the cheap through so-called “zero mileage” discounting. 

“This disguised form of price cutting disrupts normal market order and is a striking example of the auto industry’s ‘involution’,” the daily argued on Tuesday, according to a translation provided by Reuters. 

Involution, or neijuan, is a buzzword that describes a pointless, resource-expending endeavor like spinning on a hamster wheel. But more recently it has come to refer to Beijing’s unhappiness its domestic champions weakening themselves by competing in a race to the bottom. 

“Once market competition rules are properly enforced, ‘zero-mileage used cars’ wont be able to run far — or for long,” it continued. 

Automakers risk conditioning consumers into expecting price cuts

Stuffing the sales channel full with nearly new cars at discounted prices is nothing unique to China. The industry has long maintained a practice called pre-registrations where dealers would offer discounted vehicles with extremely low or even symbolic mileage to offload slower moving stock and reach sales targets. 

But China appears to have taken the practice to an extreme, ridding itself of this fig leaf of symbolic mileage amid a raging price war that is already halfway through its third year. 

The primary culprit right now is BYD, the country’s largest carmaker, which has been slashing prices at a brutal rate, forcing other competitors to either follow suit or lose market share. Late last month it reduced prices across a number of the the starting price of its cheapest model, the Seagull EV hatchback, to the equivalent of $7,800 from nearly $10,000 previously. BYD could not be reached by Fortune for comment.

Typically once the industry conditions consumers to expect price cuts, it can create a vicious circle as buyers wait on the sidelines for better deals. Over time it becomes increasingly hard to wean them off discounts. 

China can build twice as many cars as it can sell domestically

The price war results from years of overinvestment in the car industry, where privately owned companies such as BYD and Geely compete alongside industry newcomers like consumer electronics giant Xiaomi as well as a host of state-owned rivals. 

The latter often see political interests promoted over market forces at the cost of profits. These include the central government’s First Automobile Works (FAW) and Dongfeng, as well as peers like Shanghai’s SAIC and Guangdong’s GAC that are controlled by their municipal or provincial party leaders.

With all these players jockeying for enough of a share to reach critical scale, China now has the estimated installed capacity across to build nearly 50 million cars a year, or twice as many as the industry can sell domestically. All these superfluous fixed costs put enormous pressure on carmakers to boost sales volumes at almost any price just to eke out an existence.

Last July, consultancy Alix Partners predicted a shake-out in the Chinese car industry currently featuring 137 electric vehicle brands. Only one out of every seven will be profitable by the end of the decade, it concluded. 

This story was originally featured on Fortune.com

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In Silicon Valley’s white hot race for AI talent, companies are looking for two types of people: the experts and the learners. 

The first group is made up of the world-renowned technical talent that can design chips, program large language models, and engineer sophisticated AI apps. The second group is comprised of the business leaders who prove to be the most adept at using the new technology. 

This new class of executives will need to be “bilingual” in AI and their area of expertise, Google Cloud chief operating officer Francis deSouza said at the Fortune COO Summit on Monday. 

“The marketing person should, not only, know marketing, but should now get very comfortable with AI tools and where they could go,” deSouza said. “And that’s not just in marketing, but finance, logistics, you know, sales. At some point, everybody in the org will want to be bilingual.” 

Employers should undertake dedicated, companywide effort to teach employees these new AI skills, according to Microsoft Americas chief operating officer Tracy Galloway. 

“Find the work elements you want to apply something against, put the [AI] agents in and work with your customer support, your HR so that they’re learning and training along the way,” Galloway said. 

The benefits to those who picked up these skills would be significant. “The people who leverage this technology will be orders of magnitude, more productive, more effective, and do things that others can’t,” deSouza said. 

Finding ‘very specialized’ AI experts

deSouza is under no illusions about how difficult it is to find AI experts—the computer scientists who will build the technology. “That is a very specialized talent, that is very rare,” he said. 

Google turns to academic institutions to recruit this talent, which is in short supply, deSouza added. deSouza pointed to many of Google’s AI efforts, which includes developing its Gemini model and designing proprietary chips, as key reasons people wanted to join the company. “Fortunately, we’re doing exciting work,” he said. 

Since OpenAI’s ChatGPT-3.5 model catapulted AI into the public consciousness in November 2022, Silicon Valley’s top firms have been engaged in an all out war for the world’s best AI researchers. More than two years on from that seminal moment the push to recruit the best and brightest in the field hasn’t slowed. 

Many tech giants have come up with unique solutions for how to assemble the superteams of the best AI executives and developers they covet. For example, in March 2024 Microsoft signed an unusual $650 million licensing deal with the startup Inflection AI, that would also allow it to hire its key personnel, including its founder Mustafa Suleyman. In August of last year Google put together its own unorthodox deal with the startup Character AI, which was founded by one of its former employees. The $2.7 billion agreement gives Google a non-exclusive license to Character AI’s tech and also allows it to hire some of the startup’s employees.

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Good morning. Three years after its formation through a merger, Warner Bros. Discovery is splitting up, and its CFO is stepping into his first CEO role.

The media and entertainment giant announced on Monday that it will separate into two publicly traded companies through a tax-free transaction. Gunnar Wiedenfels, CFO since 2022, will become CEO of global networks, the new company that will include cable channel businesses CNN, TNT, TBS, Discovery, and more.

David Zaslav, president and CEO of Warner Bros. Discovery (No. 114 on the Fortune 500), will lead the streaming and studios company, which will oversee movie properties and the HBO Max streaming service. Both Wiedenfels and Zaslav will remain in their current roles until the split, expected by mid-2026.

“By operating as two distinct and optimized companies, we’re giving these iconic brands the focus and flexibility they need to compete in today’s evolving media landscape,” Zaslav said in a statement.

As of Q1 2025, Warner Bros. Discovery’s debt is about $37.4 billion. A $17.5 billion bridge loan from JPMorgan will help refinance existing debt ahead of the split. Wiedenfels will oversee a large portion of this debt as CEO of global networks. “It’s safe to assume that the majority of the debt is going to live with global networks and a smaller—but not insignificant—portion with streaming and studios,” he told investors on Monday during a call.

Once the separation is complete, neither company will face restrictions on pursuing new transactions. Global networks will retain up to a 20% stake in streaming and studios.

“We have long viewed exploring strategic alternatives, including today’s announced spin, as the best way to unlock the company’s significant unrecognized value,” wrote Jessica Reif Ehrlich, a Bank of America Securities research analyst, in a Monday note. BofA Securities maintains a buy rating and a $14 price target for the stock.

From CFO to CEO

Before the April 2022 merger that created Warner Bros. Discovery, Wiedenfels was CFO at Discovery, Inc., joining in 2017 after serving as CFO of ProSiebenSat.1 Media in Germany. This will be his first CEO role.

Zaslav referred to him as “hugely talented” on Monday’s call, noting his broad and diverse skill set and significant impact both financially and strategically. Wiedenfels thanked Zaslav and the board for their confidence in him.

I asked Scott Simmons, co-managing partner at executive search firm Crist Kolder Associates, what companies look for in leadership during spinoffs. “The most important requirements for success in a spinoff are the ability to stand up functions and build strong teams,” he said. “Executives at spinoffs are focused on establishing a new identity for the company.” He also noted that Wiedenfels’ move from CFO to CEO reflects a broader trend. “CFOs continue to evolve into broad-based operating leaders, far from the ‘bean counter’ image of the past,” he said.

Wiedenfels appears ready for the challenge. “I truly cannot wait to get started, and I’m as excited as ever to hit the ground running,” he said on the call.

Sheryl Estrada
[email protected]

***
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Fortune, in partnership with Workday, convenes this series to support and inspire emerging CFOs and senior finance leaders. You can find out more information and register here.

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The leaders of a sex-focused women’s wellness company that promoted “orgasmic meditation” have been convicted of federal forced labor charges.

A Brooklyn jury on Monday found Nicole Daedone, founder of OneTaste Inc., and Rachel Cherwitz, the California-based company’s former sales director, guilty after deliberating for less than two days following a five-week trial. The two each face up to 20 years in prison when sentenced later.

Prosecutors had argued the two women ran a yearslong scheme that groomed adherents — many of them victims of sexual trauma — to do their bidding.

They said Daedone, 57, of New York, and Cherwitz, 44, of California, used economic, sexual and psychological abuse, intimidation and indoctrination to force OneTaste members into sexual acts they found uncomfortable or repulsive, such as having sex with prospective investors or clients.

The two told followers the questionable acts were necessary in order to obtain “freedom” and “enlightenment” and demonstrate their commitment to the organization’s principles.

Prosecutors said OneTaste leaders also didn’t pay promised earnings to the members-turned-workers and even forced some of them to take out new credit cards to continue taking the company’s courses.

Assistant U.S. Attorney Nina Gupta, in her closing statement last week, said the defendants “built a business on the backs” of victims who “gave everything” to them, including “their money, their time, their bodies, their dignity, and ultimately their sanity.”

“The jury’s verdict has unmasked Daedone and Cherwitz for who they truly are: grifters who preyed on vulnerable victims by making empty promises of sexual empowerment and wellness only to manipulate them into performing labor and services for the defendants’ benefit,” said Joseph Nocella, U.S. Attorney for the Eastern District of New York.

Daedone’s defense team cast her as a “ceiling-shattering feminist entrepreneur” who created a unique business around women’s sexuality and empowerment.

Cherwitz’s lawyer, Celia Cohen, argued that the witnesses who testified weren’t forced to do anything. When they didn’t like the organization anymore or wanted to try other things, she said, they simply left.

“No matter what you think about OneTaste and what they were doing, they chose it. They knew what it was about,” she said in her closing statement last week. “The fact they are regretting the actions that they took when they were younger is not evidence of a crime.”

Lawyers for the defendants said their clients maintain their innocence and intend to appeal.

“We are deeply disappointed in today’s verdict,” the lawyers said in a statement Monday. “This case raised numerous novel and complex legal issues that will require review by the Second Circuit.”

Daedone co-founded OneTaste in San Francisco in 2004 as a sort of self-help commune that viewed female orgasms as key to sexual and psychological wellness and interpersonal connection.

A centerpiece was “orgasmic meditation,” or “OM,” which was carried out by men manually stimulating women in a group setting.

The company enjoyed glowing media coverage in the 2010s and quickly opened outposts from Los Angeles to London. Portrayed as a cutting-edge enterprise that prioritized women’s sexual pleasure, it generated revenue by providing courses, coaching, OM events, and other sexual practices for a fee.

Daedone sold her stake in the company in 2017 for $12 million — a year before OneTaste’s marketing and labor practices came under scrutiny.

The company’s current owners, who have rebranded it the Institute of OM Foundation, have said its work has been misconstrued and the charges against its former executives were unjustified.

They maintain sexual consent has always been a cornerstone of the organization. The company didn’t immediately respond to an email seeking comment.

This story was originally featured on Fortune.com

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• Investors seem to be in a wait-and-see mode this morning as trade talks between the U.S. and China continue in London. Stocks were largely flat in Asia and Europe, and S&P 500 futures aren’t going anywhere either. 

S&P 500 futures were flat this morning, following Asian and European indexes which also moved only marginally. The lack of drama in the markets seems to be an indicator that investors are waiting to see what emerges from the U.S. trade talks with China in London.

There is no telling how the trade talks between the U.S. and China will pan out but China appears to be sitting at the table with a persuasive advantage: It has a global monopoly on samarium, a rare earth mineral that has magnetic properties and can withstand high temperatures. The U.S. military is dependent on the substance for its fighter jets.

That implies that the White House may now be more willing to make a deal with China that leads to lower tariffs—which would likely boost stocks.

The U.K.’s FTSE 100 rose 0.42% this morning, maintaining its all-time high above 8,869, on news of a major spending package proposed by Keir Starmer’s Labour government and NATO plans to increase defense spending continent-wide to 5% of GDP for each member country.

Apple’s WWDC event, which historically has delivered new-product surprises for investors in the widely held stock, was underwhelming. Apple declined 1.2% yesterday and barely moved in overnight trading.

Here’s a snapshot of the action prior to the opening bell in New York:

• S&P 500 futures were flat before the market open this morning, but are still priced above the 6,000 mark.
• The S&P 500 rose 0.1% yesterday. The index is up 2.1% YTD. 
• All the major Asian indexes closed up, with the exception of the markets in China and Hong Kong, which moved down marginally. 
• The Stoxx Europe 600 was down 0.1% in early trading. 
• The U.K.’s FTSE 100 maintained its all-time high and was up 0.42% in early trading.
• Apple closed down 1.2% yesterday after its annual developer event delivered no major surprises.

This story was originally featured on Fortune.com

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• Elon Musk’s feud with President Donald Trump could especially weigh on Musk’s companies because of their reliance on the government, said investor and Ark Invest CEO Cathie Wood. Musk’s companies, such as SpaceX, are especially vulnerable as its COO last year said it had $22 billion worth of federal contracts.

Elon Musk’s feud with President Donald Trump isn’t just petty drama, it could have real consequences for Musk’s companies because they rely so much on the government, said Ark Invest CEO and investor Cathie Wood. 

Among Musk’s companies, both SpaceX and Tesla have benefitted from billions of dollars in subsidies and grants—and SpaceX CEO COO Gwyne Shotwell said last year the company had $22 billion in federal contracts, the bulk of which came from NASA.

This reliance on the government could become a problem not just for Musk’s companies, but for investors amid his spat with Trump, said Wood in a video uploaded to Ark Invest’s YouTube channel Friday.

“I think the way this is evolving is Elon, Tesla, and investors are beginning to understand more and more just how much the government has control here,” Wood said in the video. “Elon is involved in companies that are depending on the government.”

For Neuralink, a more hostile regulatory environment could also be a problem. While Musk’s brain-implant company has already received FDA approval for human trials, any future commercialization would also require federal approval. Meanwhile, Tesla could later need to deal with federal regulations for its autonomous-taxi plan, added Wood. Any regulation on AI imposed by the executive branch could also affect xAI, Musk’s AI company that also owns X, his social network. 

Last week, Tesla’s stock plummeted by as much as 14% before rebounding, as Musk criticized Trump’s “big beautiful bill,” and Trump shot back threatening to terminate Musk’s government contracts. Finally, Musk came back and said SpaceX would decommission its Dragon spacecrafts, one of which brought home two NASA astronauts in March after an unexpected 9-month stay on the International Space Station.

Later, though, Musk took back his statement on the Dragon spacecraft, and has since appeared to have deleted at least one of his most inflammatory posts on X attacking Trump.

Wood said Musk is starting to walk back the feud with Trump, adding he “certainly doesn’t want to be impaired,” as the U.S. negotiates with China, on which Tesla depends both for the production and sale of its products. China recently granted licenses for rare-earth minerals to suppliers of the Big Three U.S. automakers, Reuters reported. Tesla was not included, said Wood.

“Clearly there has been some brand damage to Tesla, which he readily admits, and I think he’s trying to disengage from the government and being associated with one party or another,” she said.

Still, Wood said she believes the pair will ultimately work out their issues.

“One of the things I’ve observed over the years, since we’ve held Tesla, is that Elon Musk works really well under pressure, and he creates a lot of that chaos and pressure himself.”

This story was originally featured on Fortune.com

© Chris Ratcliffe—Bloomberg via Getty Images

• The feud between Elon Musk and Donald Trump appears to be cooling off, with Musk recently expressing support for the White House’s stance on immigration protests in Los Angeles and engaging positively with posts from President Trump and VP JD Vance. Despite a dramatic fallout over federal spending, Musk has since deleted inflammatory posts and responded amicably to conciliatory comments from Trump’s camp, signaling a possible reconciliation.

The so-called “blood feud” between Tesla CEO Elon Musk and President Donald Trump may already be simmering down, after the richest man on the planet returned to endorsing the actions of the White House.

In recent weeks the political partnership that was Musk and Trump broke down in spectacular fashion over the Oval Office’s ‘Big, Beautiful Bill.’

Musk felt the package undermined the work he had done with the Department of Government Efficiency (DOGE) to reduce spending and the federal deficit, though Trump claimed the SpaceX founder went “crazy” after finding out the bill cut certain electric vehicle mandates.

But even in the last 24 hours the sharpest rebukes between the pair seem to have been walked back and in some cases, rescinded.

Musk seems to have reconnected with the work of the White House due to the protests currently happening in Los Angeles against Immigration and Customs Enforcement (ICE).

The Neuralink founder has long pushed for tighter border controls into the U.S., and this was among the political common ground which led to him supporting Trump in the 2024 elections.

Musk’s repatriation into team Trump began with the X owner screenshooting a post from the president’s Truth Social platform. In the post, Trump wrote: “Governor Gavin Newscum and ‘Mayor’ Bass should apologize to the people of Los Angeles for the absolutely horrible job that they have done, and this now includes the ongoing L.A. riots. These are not protestors, they are troublemakers and insurrectionists. Remember, NO MASKS!”

The Tesla CEO also reshared a post from Vice President JD Vance, adding it to his timeline with two American flags.

The post from Vance itself contains a further screenshot from Trump’s Truth Social, in which he claims “order will be restored, the illegals will be expelled and Los Angeles will be set free.”

The post from Vance accompanying Trump’s post reads: “This moment calls for decisive leadership. The president will not tolerate rioting and violence.”

And a further indication of the thawing relations between Musk and his former colleagues in Washington D.C. was his response to a JD Vance interview published at the weekend.

Speaking on podcast ‘This Past Weekend’ with Theo Von, Vance said: “I don’t want to reveal too many confidences but [Trump] was getting a little frustrated, feeling like some of the criticisms were unfair coming from Elon…the president doesn’t think that he needs to be in a blood feud with Elon Musk, and I actually think if Elon chilled out a little bit, everything would be fine.”

Reacting to the clip, Musk wrote: “Cool.”

Perhaps the most notable of Musk’s actions has been to delete the most salacious of his posts on X, which claimed the president’s name is in the Epstein files.

The post—shared with no evidence—was slammed as “BS” by Vance.

Musk vs Trump so far

The spat between Musk and Trump has unfolded a breakneck speed since the man worth $356 billion left Washington D.C., rescinding his title as a special government employee.

The partnership between the duo hasn’t always been smooth sailing, with Musk making his opinions of some major Trump 2.0 policies clear. He wasn’t a fan of tariffs, for example, and publicly sparred with a top Trump advisor, Peter Navarro, on the issue.

While White House Press Secretary Karoline Levitt laughed off that feud as “boys will be boys” she did have to respond more forcefully when Musk’s ire was directed at the Oval Office.

The Tesla CEO has variously claimed Trump could not have won last year’s election without him, as well as asking voters to rebel against the ‘Big, Beautiful Bill’ saying it is a “disgusting abomination.”

Musk even went as far as calling for Trump to be impeached, and baited the Oval Office into cancelling government contracts with his private entities.

Trump hasn’t been silent on the matter but has been somewhat more tempered. Although warning Musk’s federal contracts could be due a review, the president added he “wasn’t thinking” about the Tesla CEO and hopes he does well with his EV-making company.

“I have no intention of speaking to [Musk],” Trump added in an NBC News interview this weekend.

“I think it’s a very bad thing, because he’s very disrespectful. You could not disrespect the office of the president,” he added.

And even if Vance is hoping Musk will return to the fold, Trump added to NBC he believed his relationship with the CEO is over.

This story was originally featured on Fortune.com

© ALEX WROBLEWSKI, ALLISON ROBBERT—AFP via Getty Images

• In today’s CEO Daily: Diane Brady talks to her digital AI twin.
• The big story: Trade talks with China.
• The markets: It’s pretty quiet out there.
• Analyst notes from Wedbush on Musk and Tesla, JPMorgan on Apple, Goldman Sachs on Switzerland’s negative interest rates, and Joachim Klement on defense stocks.
• Plus: All the news and watercooler chat from Fortune.

Good morning from the Fortune COO Summit in Scottsdale, where a lot of the conversation was focused on how leaders are using AI and preparing their companies to embrace it. We created some multi-agent systems in real time with Babak Hodjat, who is chief technology officer, AI, for Cognizant, our founding and knowledge partner for the summit. Chipotle CEO Scott Boatwright said his company will open a new restaurant almost every 24 hours thanks to AI, and leaders like LRN founder Dov Seidman talked about how to create more human-centered organizations in this next wave of transformation.

I had an opportunity to interview my digital twin on stage. It—or should I say, she?—was created by Delphi cofounder and CEO Dara Ladjevardian, whose company has created thousands of digital clones for clients who want to, as he put it, “scale their minds.” That could be consultants who are using digital clones to engage potential clients in conversation or CEOs who want to help employees understand their thinking on a range of issues. The goal, says Ladjevardian, is to train these digital replicas to “be predictive of you.”

What’s fun, and disconcerting, is how these clones can engage in conversation. Mine knew my sister’s name, thanks to a podcast from a decade ago that I hadn’t realized it found, and it cited my own phrases back to me. (Note to self: the alliteration that seemed clever on a LinkedIn bio can sound trite when you hear it said out loud.) And, unlike me, my twin could instantly call up facts and anecdotes from past stories and serve up observations about current affairs in my voice.

Did it capture the essence of who I am? No. I thought it was more humorless and way more superficial than I am in real life. There’s a mildly creepy quality to my video avatar—the movie Cats comes to mind—where my mouth and eyes didn’t seem quite in sync. But—hey—maybe that’s because I never look at myself as I talk.  I presume the technology will get better at capturing tone, personality and empathy. But let me know what you think. You can speak with digital Diane yourself by clicking on this link. 

• Change the World is Fortune’s annual list featuring companies that are doing well by doing good. These companies are using the creative tools of business to help the planet and tackle society’s unmet needs—and they’re earning a profit while doing so. You can see last year’s honorees here. The deadline for applications this year is Tuesday, July 29; the list will be published in late September, and will appear in the October/November issue of Fortune magazine.

More news below.

Contact CEO Daily via Diane Brady at [email protected]

This story was originally featured on Fortune.com

Eurostar Group Ltd. plans to launch direct train services from London to Frankfurt and Geneva next decade, connecting the UK’s capital to two of Europe’s key financial centers.

The journeys would each take roughly five hours, a spokesperson for the operator said. As part of the new services, Eurostar, which is majority-owned by France’s state rail company SNCF, said it would invest approximately €2 billion ($2.3 billion) to increase its fleet by around 30%.

Eurostar’s plans come as it faces criticism over high prices and reliability. It could also face opposition from other operators pushing to launch rival services to end its 31-year monopoly on international trains from Britain. Richard Branson’s Virgin Group and FS Italiane Group are among the companies seeking to challenge Eurostar on its flagship route between London and Paris.

Offering direct trains from London to Frankfurt and Geneva would allow bankers and other finance professionals to continue their work and make calls during their journeys, unlike on planes.

Eurostar currently operates services in five countries: the UK, Belgium, France, the Netherlands and Germany. The most popular route, London to Paris, attracted more than 280,000 passengers last year. 

The company behind St Pancras, the London train station where Eurostar operates, and Getlink SE, the Channel Tunnel operator, said earlier this year they wanted to open more services to France and new routes to Germany and Switzerland. 

Last year, a report from campaign group Transport and Environment (T&E) rated Eurostar the worst-performing of 27 European rail services. The survey considered factors such as ticket prices, reliability and experience. Eurostar disputed the findings.

This story was originally featured on Fortune.com

© Artie Photography (Artie Ng) via Getty

Huawei, the Chinese tech giant, has borne the brunt of U.S. restrictions since 2019, when Washington barred it from acquiring advanced components. Export controls passed in 2022 further constrained Huawei’s ability to get advanced chips. 

But despite U.S. pressure, Huawei is returning to the forefront of China’s tech sector, with new successes in smartphones, AI processors and EVs. Observers, in and out of China, see Huawei as proof that the country can succeed even if cut off from advanced technologies produced in the West. 

Yet Huawei’s founder is cautioning against reading too much into the tech giant’s progress. Ren Zhengfei, in a Tuesday interview with People’s Daily, the Chinese Communist Party’s official newspaper, said that the U.S. was overstating Huawei’s successes. He suggested the company’s chips were still a generation behind the U.S.

“Huawei is not that great. We have to work hard to reach [the U.S.’s] evaluation,” he said. 

Nevertheless, Ren batted away concerns that U.S. export controls will constrain the growth of both Huawei and the Chinese tech sector.

The Biden administration argued that chip export control measures would slow China’s tech developments and maintain the U.S.’s edge in industries like AI. U.S. rules now bar Chinese companies from buying the most advanced chips, as well as the equipment and software needed to design and manufacture them. 

Yet Ren countered that chip packaging and stacking techniques could help Chinese semiconductor firms keep up with the most advanced chips. (Stacking involves bundling multiple chips into a package to get higher performance).

Ren also argued that an increasingly open-source environment will benefit the country in the future. 

Chinese tech companies are reportedly embracing RISC-V, an open-source platform that can be used for chip design.

Several of China’s leading tech companies, like e-commerce giant Alibaba and startup DeepSeek, have also made their AI open-source, allowing other developers to download, run and tweak the models themselves. That’s encouraged more widespread adoption, including outside of China.

Export controls to the fore

Ren’s comments come as export controls start to dominate U.S.-China trade conversations. 

Trade officials from both countries are meeting in London for a second day of trade talks. The U.S. has accused China of slow-rolling its shipments of rare earths, critical minerals used in an array of sophisticated products, including smartphones and cars. 

China holds a dominant position in the production of rare earths. Beijing restricted exports of these metals in April, requiring companies to apply for a license to export rare earths out of the country. These regulations are snarling supply chains for some manufacturers, particularly in the auto industry. 

It’s an odd reversal of positions for the U.S., which increasingly uses export controls to leverage its edge in strategic technologies. Chinese officials have long complained about U.S. tech export restrictions, arguing–among other things–that they undermine globalization and threaten China’s development. 

U.S. Commerce Secretary Howard Lutnick is taking part in the London talks, which could be an indication that some U.S. restrictions could be up for negotiation. 

This story was originally featured on Fortune.com

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• Chipotle CEO Scott Boatwright says the fast-casual chain is expanding at an “exponential rate,” with plans to open more than 300 new locations this year. Key to making the growth happen is new AI technology, like its hiring platform, “Ava Cado,” Boatwright tells Fortune.

If you’re a fan of bowls, tacos, and burritos, there’s good news: there might be a Chipotle opening in your neighborhood soon.

The company currently operates over 3,700 restaurants, but it has ambitious goals to expand to 7,000 locations in the U.S. and Canada alone. On stage at Fortune’s COO summit today, Chipotle CEO Scott Boatwright revealed that the company is expanding nearly by the day.

“We will open a new Chipotle restaurant this year almost every 24 hours,” Boatwright said to Fortune’s Kristin Stoller. “And if you think about the growth that’s ahead of us and the need for highly capable, purpose driven, value oriented individuals is more critical today than it probably ever has been for our brand.”

Chipotle currently employs over 130,000 employees—and with expansion also planned for Mexico, Boatwright admitted that using AI technology has made the hiring process much quicker. Last year, Chipotle introduced “Ava Cado,” the company’s AI hiring platform, and since then, Boatwright said hiring times have been reduced by 75%.

And while the use of AI in the hiring process may be an unwelcome sign for human resource professionals, Boatwright said AI has a place in business across all verticals and industries.

“This not only helps us keep our restaurant staffed, but ensures we have the best talent that’s available in the industry,” he said.

AI might give you a discount on your next Chipotle bowl

While Chipotle is joining the long list of companies embracing AI across its business, Boatwright said you shouldn’t expect to have a robot folding your burrito anytime soon (though, it may be making your guacamole).

“We don’t look to replace the human experience, we look to remove waste and expand or enhance the team member experience,” he added. 

The company is also using the technology within its rewards system. If a customer hasn’t made a purchase in the last two weeks, Boatwright said they may be offered a deal that will escalate over time to get the customer to come into the store. AI technology is helping tailor the deals to the individual based on their personalization and overall brand usage. 

And while Boatwright only just became CEO last year—after serving as COO for over seven years—he admitted his attempts to scale the company with new technology and initiatives will only work if customers enjoy the product.

“Customers come to Chipotle for the food,” he said.

This story was originally featured on Fortune.com

© Kristy Walker/Fortune

Women’s sports are growing in popularity globally, and athletes from the Middle East are increasingly making their mark on the world stage.

As part of Saudi Arabia’s Vision 2030 development plan, the state has supported women athletes and encouraged participation in everything from mixed martial arts (MMA) to motorsports. During the Fortune Most Powerful Women conference in Riyadh, Saudi Arabia, three women athletes spoke on the importance of sports in the Middle East and beyond. 

Thanks to government support, women’s sports are thriving in Saudi Arabia, said MMA athlete Rasha Alkhamis.

“From year 2021 to 2024, women’s boxing grew by 460%,” she said. “Women are registered across 84 government clubs where they’re competing with men.”  

By competing, especially in combative sports such as boxing, women are not just staying healthy but also learning essential skills, added Alkhamis.

“I’ve seen the impact of boxing mentally, physically; you gain those skills, the discipline, the determination, and … you also learn how to set goals,” she said. 

While women competing in organized sports is a relatively recent phenomenon in Saudi Arabia, the popularity of many sports has skyrocketed, and women are already showing their talent on the world’s biggest stages, added Mashael Al Obaidan, the first woman to obtain a rally license in Saudi Arabia.

“We are part of male-dominant industry sports, right? But I believe that women proved themselves because we showed our talent in spaces that we weren’t historically allowed to be part of,” she said.

Other highlights: 

Aalia Al-Rasheed, Head of the Women’s Football Department, Saudi Arabian Football Federation: “When I first started at the age of 14, back in 2011, we used to find some obstacles, challenges, finding fields to play at. But today, we’re very proud that every young girl in the country has the ability and has the platform she deserves to play football.”

Zamzam Al Hammadi, Fighter, Professional Fighters League: “I’m happy that investors are really believing in the athletes, or in the organization, for us to keep going and improve the sports more, especially in the female field.”

This story was originally featured on Fortune.com

© Iman Al-Dabbagh—Fortune

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