US veterans get heroes’ welcome in France ahead of D-Day anniversary

DEAUVILLE/PARIS — Crowds cheered and applauded as U.S. veterans arrived at French airports ahead of ceremonies marking the 80th anniversary of D-Day, when more than 150,000 Allied soldiers landed in Normandy to drive out Nazi Germany forces.  

Many of those flying in over the weekend into Monday were older than 100, pushed on wheelchairs by relatives and aides.  

“It’s unreal. It’s unreal. Wow,” 107-year-old Reynolds Tomter said at Paris Charles-de-Gaulle airport as students waved U.S. and French flags and held up photos of the veterans.  

“It feels great … and I’m so thankful that I got the opportunity to be back out here, my son with me,” said 101-year-old Bill Wall, as his son, Ray, pushed him through arrivals.

“I lost some great friends. All of these people who are out there on their crosses and unmarked graves are the true heroes. It gives me a chance to pay tribute to them which they so need. It will bring back some memories of some great people,” he added.

After shaking hands with students, 95-year-old Dave Yoho said: “My heart is full. My heart is full.”  

In Deauville, Normandy, a specially chartered flight landed on Monday.  

Across Normandy, where beaches and fields still bear the scars of the fighting that erupted on June 6, 1944 and the weeks that followed, preparations were in full gear for official ceremonies. World leaders from U.S. President Joe Biden to German Chancellor Olaf Scholz will attend.  

Already, at the weekend, in Vierville-sur-Mer, a town just above Omaha Beach – one of the sectors where U.S. soldiers landed – a re-enactment camp was set up, giving visitors a chance to see what equipment the soldiers were using.  

People took rides in World War Two jeeps and armored vehicles.  

“It’s always very intense when we meet veterans, because they always have many stories to tell, and you still feel the emotion,” said Julie Boisard, who lives in Normandy and took part in the re-enactment.  

A handful of serving members of the Virginia National Guard 29th Infantry Division gazed out over the beach their elders stormed 80 years earlier.  

“It’s historic, it’s memorable … and it’s very emotional as well,” said U.S. serviceman Esaw Lee. “Those guys were so courageous and so mythical. They were legendary.”  

With war raging on Europe’s borders in 2024, this anniversary’s D-Day ceremony will carry special resonance.  

Ukrainian President Volodymyr Zelenskiy will be among the guests. Russia, which launched a full-scale invasion of Ukraine in 2022, touching off Europe’s biggest armed conflict since World War Two, was not invited to the D-Day events.  

The commemorations “remind us that we were occupied for four years and were liberated by the Americans,” said Marie-Therese Legallois, who was seven at the time of D-Day, and remembers it vividly.  

“But I always have a bit of sadness to see that the war continues, in Ukraine or elsewhere.”

CEOs got hefty pay raises in 2023, widening the gap with the workers they oversee 

New York — The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 13% last year, easily surpassing the gains for workers at a time when inflation was putting considerable pressure on Americans’ budgets.

The median pay package for CEOs rose to $16.3 million, up 12.6%, according to data analyzed for The Associated Press by Equilar. Meanwhile, wages and benefits netted by private-sector workers rose 4.1% through 2023. At half the companies in this year’s pay survey, it would take the worker at the middle of the company’s pay scale almost 200 years to make what their CEO did.

CEOs got rewarded as the economy showed remarkable resilience, underpinning strong profits and boosting stock prices. After navigating the pandemic, companies faced challenges from persistent inflation and higher interest rates. About two dozen CEOs in the AP’s annual survey received a pay bump of 50% or more.

“In this post-pandemic market, the desire is for boards to reward and retain CEOs when they feel like they have a good leader in place,” said Kelly Malafis, founding partner of Compensation Advisory Partners in New York. “That all combined kind of leads to increased compensation.”

But Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies, believes the gap in earnings between top executives and workers plays into the overall dissatisfaction among Americans about the economy.

“Most of the focus here is on inflation, which people are really feeling, but they’re feeling the pain of inflation more because they’re not seeing their wages go up enough,” she said.

Many companies have heeded calls from shareholders to tie CEO compensation more closely to performance. As a result, a large proportion of pay packages consist of stock awards, which the CEO often can’t cash in for years, if at all, unless the company meets certain targets, typically a higher stock price or market value or improved operating profits. The median stock award rose almost 11% last year compared to a 2.7% increase in bonuses.

The AP’s CEO compensation study included pay data for 341 executives at S&P 500 companies who have served at least two full consecutive fiscal years at their companies, which filed proxy statements between Jan. 1 and April 30.

Top earners

Hock Tan, the CEO of Broadcom Inc., topped the AP survey with a pay package valued at about $162 million.

Broadcom granted Tan stock awards valued at $160.5 million on Oct. 31, 2022, for the company’s 2023 fiscal year. Tan was given the opportunity to earn up to 1 million shares starting in fiscal 2025, according to a securities filing, provided that Broadcom’s stock meets certain targets – and he remains CEO for five years.

At the time of the award, Broadcom’s stock was trading at $470. Tan would receive portions of the stock awards if the stock hit $825 and $950 and the the full award if the average closing price is at or above $1,125 for 20 consecutive days between October 2025 and October 2027. The targets seemed ambitious when set, but the stock has skyrocketed since, and reached an all-time closing high of $1,436.17 on May 28.

Like rival Nvidia Inc., Broadcom is riding the current artificial intelligence frenzy among tech companies. Its chips are used by businesses and public entities ranging from major banks, retailers, telecom operators and government bodies.

In granting the stock award, Broadcom noted that under Tan its market value has increased from $3.8 billion in 2009 to $645 billion (as of May 23) and that its total shareholder return during that time easily surpassed that of the S&P 500. It also said Tan will not receive additional stock awards during the remainder of the five-year period.

Other CEOs at the top of AP’s survey are William Lansing of Fair Isaac Corp, ($66.3 million); Tim Cook of Apple Inc. ($63.2 million); Hamid Moghadam of Prologis Inc. ($50.9 million); and Ted Sarandos, co-CEO of Netflix ($49.8 million).

At Apple, Cook’s compensation represented a 36% decline from the year prior. Cook requested a pay cut for 2023, in response to the vote at Apple’s 2022 annual meeting, where just 64% of shareholders approved of his pay package.

The survey’s methodology excluded CEOs such as Nikesh Arora at Palo Alto Networks ($151.4 million) and Christopher Winfrey at Charter Communications ($89 million).

Although securities filings show Elon Musk received no compensation as CEO of Tesla Inc., his pay is currently front and center at the electric car company. Musk is asking shareholders to restore a pay package that was struck down by a judge in Delaware, who said the approval process for the package was “deeply flawed.” The compensation, mostly stock awards valued at $2.3 billion when granted in 2018, is now estimated to be worth around $45 billion.

CEO pay vs workers

Workers across the country have been winning higher pay since the pandemic, with wages and benefits for private-sector employees rising 4.1% in 2023 after a 5.1% increase in 2022, according to the Labor Department.

Even with those gains, the gap between the person in the corner office and everyone else keeps getting wider. Half the CEOs in this year’s pay survey made at least 196 times what their median employee earned. That’s up from 185 times in last year’s survey.

The gap is particularly wide at companies where employees typically earn lower wages, such as retailers. At Ross Stores, for example, the company says its employee at the very middle of the pay scale was a part-time retail store associate who made $8,618. It would take 2,100 years earning that much to equal CEO Barbara Rentler’s compensation from 2023, valued at $18.1 million. A year earlier, it would have taken the median worker 1,137 years to match the CEO’s pay.

Corporate boards often feel pressure to keep upping the pay for well-performing CEOs out of fear that they’ll walk out the door and make more at a rival. They focus on paying compensation that is competitive within their industry or marketplace and not on the pay ratio, Malafis said. The better an executive performs, the more the board is willing to pay.

The disparity between what the chief executive makes and the workers earn wasn’t always so wide.

After World War II and up until the 1980s, CEOs of large publicly traded companies made about 40 to 50 times the average worker’s pay, said Brandon Rees, deputy director of corporations and capital markets for the AFL-CIO, which runs an Executive Paywatch website that tracks CEO pay.

“The [current] pay ratio signals a sort of a winner take all culture, that companies are treating their CEOs as, you know, as superstars as opposed to, team players,” Rees said.

Say on pay

Despite the criticism, shareholders tend to give overwhelming support to pay packages for company leaders. From 2019 to 2023, companies typically received just under 90% of the vote for their executive compensation plans, according to data from Equilar.

Shareholders do, however, occasionally reject a compensation plan, although the votes are non-binding. In 2023, shareholders at 13 companies in the S&P 500 gave the executive pay packages less than 50% support.

After its investors gave another resounding thumbs down to the pay packages for its top executives, Netflix met with many of its biggest shareholders last year to discuss their concerns. It also talked with major proxy-advisory firms, which are influential because they recommend how investors should vote at companies’ annual meetings.

Following the talks, Netflix announced several changes to redesign its pay policies. For one, it eliminated executives’ option to allocate their compensation between cash and options. It will no longer give out stock options, which can give executives a payday as long as the stock price stays above a certain level. Instead, the company will give restricted stock that executives can profit from only after a certain amount of time or after certain performance measures are met.

The changes will take effect in 2024. For last year, co-CEO Ted Sarandos received options valued at $28.3 million and a cash bonus of $16.5 million. Co-CEO Greg Peters received options valued at $22.7 million and a cash bonus of $13.9 million.

Anderson, of the Institute for Policy Studies, said Say on Pay votes are important because they “shine a spotlight on some of the most egregious cases of executive access, and it can lead to negotiations over pay and other issues that shareholders might want to raise with corporate leadership.”

“But I think the impact, certainly on the overall size of CEO packages has not had much effect in some cases,” she said.

Female CEOs

More women made the AP survey than in previous years, but their numbers in the corner office are still minuscule compared to their male counterparts. Of the 342 CEOs included in Equilar’s data, 25 were women.

Lisa Su, CEO and chair of the board of chip maker Advanced Micro Devices, was the highest paid female CEO in the AP survey for the fifth year in a row in fiscal 2023, bringing in compensation valued at $30.3 million — flat with her compensation package in 2022. Her overall rank rose to 21 from 25.

The other top paid female CEOs include Mary Barra of automaker General Motors ($27.8 million); Jane Fraser of banking giant Citigroup ($25.5 million); Kathy Warden of aerospace and defense company Northrop Grumman Corp. ($23.5 million); and Carol Tome of package deliverer UPS Inc. ($23.4 million).

The median pay package for female CEOs rose 21% to $17.6 million. That’s better than the men fared: Their median pay package rose 12.2% to $16.3 million.

Nigeria workers down tools as economic crisis bites 

Abuja, Nigeria — Nigerian unions began an indefinite strike on Monday, closing schools and public offices, impacting airports and shutting down the national power grid after talks with the government failed to agree a new minimum wage.  

The worst cost-of-living crisis in a generation in Africa’s most populous country has left many Nigerians struggling to afford food.   

The main Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) urged workers to down tools after the government refused to increase its minimum wage offer beyond 60,000 naira ($45) per month, according to local media.  

“Nigeria workers stay at home. Yes! To a living wage. No! To a starvation wage!” the unions said in a joint statement.  

Since coming to office a year ago, President Bola Ahmed Tinubu has ended a fuel subsidy and currency controls, leading to a tripling of petrol prices and a spike in living costs as the naira has slid against the dollar.  

Tinubu has called for patience to allow the reforms to take effect, saying they will help attract foreign investment, but the measures have hit Nigerians hard.   

‘No work now’ 

Government buildings, petrol stations and courts in the capital Abuja were closed, AFP journalists saw, while the doors to the city’s airport were also shut and long queues formed outside.   

A source close to the Federal Airports Authority of Nigeria (FAAN) said domestic flights had been cancelled and the airport would be shut to all flights on Tuesday.   

AFP has contacted FAAN for comment.  

The unions are also protesting an electricity tariff hike.  

The labor union at the Transmission Company of Nigeria said it had shut down the national grid overnight. Blackouts were reported across the country.   

Security was stepped up with an increased presence of soldiers on the streets of Abuja.   

Outside the Federal Secretariat, which houses several ministries, picketing union members urged workers to return home.   

“Stay at home and stay safe. We don’t want to embarrass you. No work now,” they called.   

In Lagos, an AFP journalist saw the industrial court was padlocked shut and children walked back home after finding their schools were closed.  

In the northern city of Kano, government offices were shut and public schools closed. Children in one neighborhood chanted: “No school, it’s a free day!”   

The unions said in a statement on Friday: “Nigerian workers, who are the backbone of our nation’s economy, deserve fair and decent wages that reflect the current economic realities.”  

AFP has contacted the government for comment.  

Thousands of Nigerians rallied against soaring living costs in February, though previous strikes have had limited effect. 

Sally Buzbee steps down as executive editor of The Washington Post

New York — The Washington Post said Sunday that its executive editor, Sally Buzbee, has stepped down after three years at the top of one of journalism’s most storied brands.

She will be replaced by Matt Murray, former editor in chief of The Wall Street Journal, through this fall’s presidential election. Following that, Robert Winnett, deputy editor of the Telegraph Media Group, will take over as editor as the newsroom restructures its operations.

No reason was given for Buzbee’s departure. She wasn’t quoted in the news release announcing that she was leaving and did not immediately return a message seeking comment.

The Post also announced that it was launching a new division in its newsroom dedicated to reaching audiences who want to pay for and consume news in a different way.

Buzbee, former top editor at The Associated Press, was selected as the Post’s top editor in May 2021. She replaced a renowned predecessor, Martin Baron, after the Post exploded in popularity during the Trump administration.

Buzbee was the first woman to serve as executive editor of The Washington Post. And like Jill Abramson, the first woman to be top editor at The New York Times, her tenure was short: Abramson had her job from 2011 to 2014.

It has been a miserable few years financially for the news industry, including for the Post. It has bled subscribers to the point where new publisher, Will Lewis, told employees last month that the newspaper lost $77 million last year.

“To speak candidly, we are in a hole, and have been for some time,” Lewis said, according to the Post.

Lewis was named late last year to replace Fred Ryan as Post publisher. He has worked at both The Wall Street Journal and The Telegraph in England, the places he turned to to find the new executives.

He’s talked about creating a multi-tier subscription plan for The Post, similar to that in place at Politico. In an email to employees late Sunday, Lewis said the new department will focus on more video storytelling, embrace artificial intelligence and flexible payment methods. It will begin this fall, he said.

In an earlier meeting, “we highlighted the need to move away from the traditional one-size-fits-all approach in the news media industry and focus on creating news for a broader range of readers and customers.”

It augurs a change to the traditional structure of the Post. In his memo, Lewis mentioned “three newsrooms.” Winnett will not take on the title of executive editor, but he will be responsible for the “core coverage areas” of politics, investigations, business, technology, sports and features. He has run The Telegraph’s news operations since 2013, the Post said.

Murray will take over as leader of the newly created department starting Nov. 6, the Post said. No one will have the title of executive editor: Murray, Winnett and David Shipley, the editorial page editor who will lead the “opinions newsroom,” will each report directly to Lewis, the Post said.

“By creating three strong journalism functions — core, service/social and opinions — we are taking a definitive step away from the ‘one size fits all’ approach and moving towards meeting our audiences where they are,” Lewis said.

The Post won three Pulitzer Prizes last month, including one in national reporting for a vivid series on the impact of the AR-15 rifle.

 

Border mayors heading to DC for Tuesday’s immigration announcement

McALLEN, TEXAS — At least two Texas border mayors are headed to Washington on Tuesday when President Joe Biden is expected to announce an executive order that will mark his latest and most aggressive plan to curtail the number of migrants allowed to seek asylum in the U.S.

Brownsville Mayor John Cowen and Edinburg Mayor Ramiro Garza both confirmed they were invited by the White House for an immigration announcement on Tuesday. Cowen told the Associated Press that he plans to attend, while Garza said he would have more details on Monday about his plans.

Notably, the Democratic mayor of Eagle Pass, the Texas-Mexico border town where the number of migrants led to a state-federal clash over border security, had not received an invitation as of Sunday. The mayor from McAllen said he was invited but could not attend because of a prior commitment.

A White House spokesman did not immediately return a request for comment on other mayors who were invited to the announcement.

The AP reported last week that the White House was finalizing an executive order that could shut off asylum requests and automatically deny entrance to migrants once the number of people encountered by U.S. border officials exceeded a new daily threshold.

The unilateral action is expected even as the number of border crossings at the southern U.S. border has declined since December, due in large part to Mexico’s escalated enforcement efforts. But Biden wants to head off any potential spike in crossings that could occur later in the year, as the fall election draws closer, when the weather cools and numbers tend to rise.

Immigration remains a concern for voters ahead of the November elections, with Republicans eager to punish Biden electorally over the issue. Democrats have responded that Republicans, at the behest of Donald Trump, killed a bipartisan border deal in Congress that would have led to the toughest legislative restrictions on asylum in years.

 

Російська влада вивезла до Росії весь дитячий будинок у Херсоні, що є воєнним злочином – NYT

Вивезені діти з Херсону також отримали російське громадянство – яке є необхідною умовою для усиновлення та влаштування у російські сім’ї

Puerto Rico Rep. Jesús Manuel Ortiz wins gubernatorial primary

SAN JUAN, Puerto Rico — Puerto Rico Rep. Jesús Manuel Ortiz defeated Sen. Juan Zaragoza in a gubernatorial primary held Sunday by their Popular Democratic Party, which seeks a return to power in the upcoming general elections.

Zaragoza conceded defeat after obtaining 38% of the votes to his rival’s 62%, even though only a little more than 60% of the votes had been counted.

Meanwhile, Gov. Pedro Pierluisi was still locked in a battle against Puerto Rico congresswoman Jenniffer González in a primary held by the pro-statehood New Progressive Party. The two ran on the same ticket four years ago, but González announced her plan to challenge Pierluisi in early December.

All candidates face disgruntled voters on an island still struggling with chronic power outages and awaiting completion of reconstruction projects following Hurricane Maria, which hit as a Category 4 storm in September 2017.

Other ongoing complaints include the difficulty of obtaining business permits, a fractured education system and the lack of access to capital markets after the local government emerged two years ago from the biggest U.S. municipal bankruptcy in history after announcing in 2015 that it was unable to pay its more than $70 billion public debt load.

The debt was accumulated by governments that overspent, overestimated revenue and borrowed millions despite a ballooning debt.

Running alongside Pierluisi for the position of congressional representative was Puerto Rico Sen. William Villafañe, while senior U.S. naval military officer Elmer Román, a former secretary of state for Puerto Rico, sought the position under González.

Meanwhile, Puerto Rico Sen. Juan Zaragoza, who was highly lauded for his work as the island’s former treasury secretary, ran against Rep. Jesús Manuel Ortiz to be the main candidate for the Popular Democratic Party, which supports the island’s status quo as a U.S. territory.

Attorney Pablo José Hernández was running unopposed to be the party’s candidate for resident commissioner, the first person in 20 years to seek that nomination.

Voting centers closed Sunday evening, with political pundits warning that voter turnout appeared low and that electronic voting machines did not properly work in some towns, although it was too early to determine the magnitude of the problem.

All candidates faced disgruntled voters on an island still struggling with chronic power outages and high electric bills as it awaits completion of reconstruction projects following Hurricane Maria, which hit as a Category 4 storm in September 2017.

Power outages were reported at more than a dozen voting centers, including one where Ortiz arrived to cast his vote, forcing officials to revert to a manual process. Heavy rains also pelted parts of the island, with flood warnings issued for nearly a dozen towns and cities.

Power outages remain such a big concern that the State Commission of Elections rented more than a dozen generators and a private power company identified 81 alternate voting sites with guaranteed electricity.

“It’s been years since I last voted,” said Benito López, a 66-year-old retiree wearing a T-shirt that read, “The Island of Enchantment.” He planned to cast a vote for a candidate he would not reveal “to see if there’s any improvement and change.”

Other voter complaints include the difficulty of obtaining business permits, a fractured education system, and the island’s lack of access to capital markets after the local government emerged two years ago from the largest debt restructuring in U.S. history.

Meanwhile, more than $9 billion of debt owed by Puerto Rico’s power company, the largest of any government agency, remains unresolved. A federal judge overseeing a bankruptcy-like process has yet to rule on a restructuring plan following bitter negotiations between the government and bondholders.

“They have broken Puerto Rico,” said 79-year-old Cecilio Rodríguez of the current and previous administrations as he waited to cast his vote. “Economic development must be a priority.”

For other voters, stopping the exodus of doctors from Puerto Rico and improving the U.S. territory’s crumbling health system is a priority.

“The patients are the ones who have to stay here and endure this. It’s not fair,” said Dr. Alfredo Rivera Freytes, an anesthesiologist who left Puerto Rico for the U.S. Virgin Island of St. Thomas because of the ongoing problems with the local health system.

He returned two years ago with plans to retire but found himself working again because of the need for anesthesiologists in Puerto Rico.

Ahead of the primaries, Pierluisi has touted record tourist numbers, ongoing hurricane reconstruction and growing economic development among his successes as he seeks re-election. He has pledged to prioritize projects targeting children and the island’s growing elderly population, among other things.

An event marking the end of his campaign held a week before the primaries was headlined by former Gov. Ricardo Rosselló, who resigned in August 2019 following nearly two weeks of massive protests touched off by a leak of crude and insulting chat messages between him and his top advisers.

His opponent, González, did not hold a campaign closer. She has pledged to crack down on corruption, award more funds to agencies to help victims of violence amid a surge in killings of women, and stem an exodus of doctors and other medical workers to the U.S. mainland.

Meanwhile, Zaragoza has promised to prioritize climate change and renewable energy, decentralize the island’s education department and improve access to health. His opponent, Ortiz, has pledged to improve the licensing process to retain doctors, simplify the island’s tax system and revamp health care.

Puerto Rico’s next governor will have to work alongside a federal control board that oversees the island’s finances and was created after the government declared bankruptcy.

Ahead of Sunday’s primaries, more than 4,900 inmates voted in prisons across the U.S. territory. The State Commission of Elections also has received and counted more than 122,000 early ballots.

‘Guilty’ verdict fuels Trump, Biden campaign rhetoric

Former President Donald Trump weighed in Sunday on the possibility of being sentenced to jail next month after his conviction for falsifying business records. The ‘guilty’ verdict is already being used by both the Trump and Biden campaigns to fire up their respective supporters. But swaying undecided voters will be trickier, analysts say. Veronica Balderas Iglesias has the details.

California firefighters still battling wind-driven wildfire near San Francisco

San Francisco — California firefighters expected to gain ground Sunday on a wind-driven wildfire that scorched thousands of acres some 97 kilometers east of San Francisco, burned down a home and forced residents to flee the area near the central California city of Tracy.

The fire erupted Saturday afternoon in the grassy hills managed by the Lawrence Livermore National Laboratory, one of the country’s key centers for nuclear weapons science and technology. The cause was under investigation.

The California Department of Forestry and Fire Protection said the research center was not under immediate threat from the blaze, dubbed the Corral Fire, which had devoured some 52 square kilometers by Sunday afternoon and was 30% contained.

Thousands of people in the area, including parts of the city of Tracy with a population of 100,000, were ordered to leave for evacuation centers.

CalFire Battalion Chief Josh Silveira said Sunday afternoon the fire “burned right up the homes” in the area and destroyed one house. With calmer winds and milder weather Sunday, Silveira said he didn’t expect the fire to grow.

Two firefighters suffered minor to moderate burns Saturday and were expected to make a full recovery, Silveira said.

The wildfire presented no threat to any laboratory facilities or operations and had moved away from the site, Lawrence Livermore spokesperson Paul Rhien said in a statement to The Associated Press early Sunday.

“As a precaution, we have activated our emergency operations center to monitor the situation through the weekend,” Rhien said.

Photos showed a wall of flames moving over the parched landscape as dark smoke billowed into the sky.

The wildfire also forced the closure of two major highways, including an interstate that connects the San Francisco Bay Area to San Joaquin County in central California, but they had reopened by Sunday afternoon.

The San Joaquin County Office of Emergency Services issued an evacuation order for areas west of the California Aqueduct, south of Corral Hollow Creek, west to Alameda County and south to Stanislaus County. A temporary evacuation point was established at Larch Clover Community Center in Tracy. The order was still in place as of early Sunday afternoon.

Sunday’s high temperature for Tracy was expected to reach 29 degrees Celsius, with no rain in the forecast, but hotter conditions are on their way.

The National Weather Service said “dangerously hot conditions” with highs of 39.4 C to 42.2 C were expected later in the week for the San Joaquin Valley, an area that encompasses Tracy. Wind gusts of up to 72 kph lashed the region Saturday night, according to meteorologist Idamis Shoemaker of the weather service in Sacramento.

Next Boeing CEO should understand past mistakes, airlines boss says 

DUBAI — The next CEO of Boeing BA.N should have an understanding of what led to its current crisis and be prepared to look outside for examples of best industrial practices, the head of the International Air Transport Association said on Sunday.

U.S. planemaker Boeing is engulfed in a sprawling safety crisis, exacerbated by a January mid-air panel blowout on a near new 737 MAX plane. CEO Dave Calhoun is due to leave the company by the end of the year as part of a broader management shake-up, but Boeing has not yet named a replacement.

“It is not for me to say who should be running Boeing. But I think an understanding of what went wrong in the past, that’s very important,” IATA Director General Willie Walsh told Reuters TV at an airlines conference in Dubai, adding that Boeing was taking the right steps.

IATA represents more than 300 airlines or around 80% of global traffic.

“Our industry benefits from learning from mistakes, and sharing that learning with everybody,” he said, adding that this process should include “an acknowledgement of what went wrong, looking at best practice, looking at what others do.”

He said it was critical that the industry has a culture “where people feel secure in putting their hands up and saying things aren’t working the way they should do.”

Boeing is facing investigations by U.S. regulators, possible prosecution for past actions and slumping production of its strongest-selling jet, the 737 MAX.

‘Right steps’

Calhoun, a Boeing board member since 2009 and former GE executive, was brought in as CEO in 2020 to help turn the planemaker around following two fatal crashes involving the MAX, its strongest-selling jet.

But the planemaker has lost market share to competitor Airbus AIR.PA, with its stock losing nearly 32% of its value this year as MAX production plummeted this spring.

“The industry is frustrated by the problems as a result of the issues that Boeing have encountered. But personally, I’m pleased to see that they are taking the right steps,” Walsh said.

Delays in the delivery of new jets from both Boeing and Airbus are part of wider problems in the aerospace supply chain and aircraft maintenance industry complicating airline growth plans.

Walsh said supply chain problems are not easing as fast as airlines want and could last into 2025 or 2026.

“It’s probably a positive that it’s not getting worse, but I think it’s going to be a feature of the industry for a couple of years to come,” he said.

Earlier this year IATA brought together a number of airlines and manufacturers to discuss ways to ease the situation, Walsh said.

“We’re trying to ensure that there’s an open dialogue and honesty,” between them, he said.

OPEC+ agrees to extend output cuts to buttress oil prices 

Vienna, Austria — The OPEC+ group of oil-producing nations agreed Sunday to extend their production cuts in a bid to support prices, as economic and geopolitical uncertainty looms over the market.  

The 12-member oil cartel and its 10 allies decided to “extend the level of overall crude oil production… starting 1 January 2025 until 31 December 2025,” a statement by the alliance said.  

In addition, eight countries said they would also extend voluntary supply cuts made at Riyadh’s request to further support the market: Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.  

Some of those cuts will run until September before being phased out, while others will be kept in place until December 2025.  

The decisions came after the biannual meeting of the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and its 10 partners, headed by Russia.  

The group-wide supply cuts amount to about two million barrels per day (bpd).  

Adding the series a voluntary cuts, OPEC+ members are currently slashing output by almost six million barrels per day overall to bolster flagging oil prices.   

‘Positive surprise’ 

OPEC+ also agreed to allow the United Arab Emirates to increase its production target by 300,000 bpd for next year, a statement said.  

The UAE had pledged to make additional voluntary output cuts at the request of Saudi Arabia, which wanted to share the burden of cuts in an effort to support prices.   

UBS analyst Giovanni Staunovo called Sunday’s announcements a “positive surprise.” 

The decision “removes some uncertainty over some tensions down the road, as the quotas will now be reviewed end 2025 for 2026,” Staunovo told AFP.  

Negotiations about the production quotas of member countries have repeatedly been a source of discord in the past, triggering heated debates and even shock departures.   

At the end of 2023, Angola exited OPEC over a disagreement on output cuts.  

But according to Mukesh Sahdev at the Rystad Energy research group, the alliance still faces the issue of “actual barrels flowing to the market likely being higher than what is accounted for”, which could potentially undermine the cartel’s strategy.  

Moreover, Iraq and Kazakhstan exceeded their quotas in the first quarter, while Russia overproduced in April.   

‘Challenging environment’  

Amid questions surrounding global demand, some analysts say that gradually allowing oil to return to the markets without causing prices to plummet will prove challenging.  

Producers will probably have to come up with a complex system to skillfully reintroduce barrels that were previously removed, without causing prices to crater.  

Oil prices have changed little since the last meeting in November, hovering at around $80 a barrel.  

OPEC continues to stick to its demand forecasts for 2024, while the International Energy Agency has lowered its estimates.  

Amid “above-average inflation, slowing global growth outlook, central bank uncertainties, rising US oil production and Middle East tensions, the environment is challenging”, said Ipek Ozkardeskaya, a market analyst at Swissquote Bank.

Unusual mix of possible candidates line up for Chicago’s first school board elections this fall 

Chicago — A Grammy-winning rapper, progressive activists and a leader of an afterschool squash program are part of the eclectic mix of possible candidates lining up for Chicago’s first school board elections this fall.

America’s third-largest city has long been an outlier with a mayor-appointed board overseeing its public schools, and it took years of advocacy and legislative squabbles to reach this point. But the messiest part is likely yet to come.

The historic November races are part of a multi-year transition that is hard to explain to voters. Special interest groups are taking notice. And questions loom about how the new 21-member board, triple the current size, will govern.

“This is not a political race, this is a movement,” said rapper Che “Rhymefest” Smith, who is among dozens of hopefuls who filed fundraising paperwork. “Everyone in this city has a responsibility to the children who are going to be served.”

Potential candidates are circulating petitions while educating voters about the inaugural contests. Many are parents, advocates and former educators making their first foray into politics, navigating a steep learning curve with little name recognition or cash.

While legislators approved an elected board in 2021, the logistics, including political maps, weren’t settled until March. The board won’t be fully elected until 2027.

Residents, divided into 10 sprawling districts, will vote for board members to take office next year. The mayor will then appoint 10 other board members from smaller subdistricts along with a citywide president. In 2026, voters will elect all 21 members, eventually for four-year terms.

“It takes almost a flow chart to figure it out,” said Adam Parrott-Sheffer, a former principal touting his experience to run in the same South Side district as Smith.

Conversations with potential supporters involve more explanation on process than issues, he says.

Parent Kate Doyle, who founded a nonprofit, hopes to represent a North Side district. After knocking on hundreds of doors, she found one person, a teacher, who fully understood what’s coming.

Chicago’s Board of Education — which passes a $9 billion budget, confirms a CEO and approves policies and contracts — was created by state legislators in 1872. After many versions, a seven-member board was instituted in 1999. The roughly 325,000-student district, serving largely low-income Black and Latino children, has grappled with budget cuts and dwindling population.

Interest in elected representation gained momentum after former Mayor Rahm Emanuel closed over 50 schools in 2013.

The Chicago Teachers Union, among the groups pushing the change, deems it a voting rights issue.

“An elected school board brings people from those spaces that have been neglected and disinvested to a table where they have some agency,” said CTU President Stacy Davis Gates.

Over 90% of school boards are elected, according to the National School Boards Association. Few school districts have recently changed from an appointed school board to an elected one, leaving Chicago without a roadmap.

One fellowship program through National Louis University is trying to ease Chicago’s transition with training for potential board members. Most of the 22 current fellows enrolled hope to get on the November ballot. They’re learning how to engage with the public and tactics for group decision making.

“If this program can shorten that learning curve a little bit, that could have a really positive tremendous impact on the students in the city,” said Bridget Lee, who oversees the program.

Candidates face numerous hurdles, including a truncated campaign season.

The jobs, which district officials estimate require up to 30 hours of time weekly, are unpaid, limiting who can afford to run. At least 1,000 signatures are required to get on the ballot, more than double the number for aldermanic and some congressional candidates with paid political operations.

Anusha Thotakura, a 25-year-old activist with the progressive Citizen Action Illinois, collected 600 signatures in a district that includes wealthy and low-income neighborhoods.

“This board presents a lot of hope for people about having accountability,” she said.

Smith fanned signed petitions on the dining table at his great-grandmother’s South Side home where he lives.

“In Chicago, this is money,” the 46-year-old joked. Still, he’s putting $80,000 into his bid and has written a campaign song titled “Optimistic.”

“People see a rapper and there’s a stigma to it,” said Smith, who made an unsuccessful 2011 City Council run. “I’m here to break stereotypes.”

Voter turnout in school elections is typically under 10%, according to the NSBA. The presidential contest is expected to help, though Chicago’s March primary turnout was the lowest in years at roughly 26%.

That adds weight to endorsements, including from the influential teachers’ union. Competition to get them is fierce.

One possible candidate, Yesenia Lopez, unveiled her campaign with Congressman Jesus “Chuy” Garcia’s backing before her campaign disclosure paperwork was filed.

Jesus Ayala, 32, hopes to run in the same Southwest Side district. He works at MetroSquash, a sports complex offering mentorship and other student programs through the racquet sport.

“When you have a congressman announcing someone’s candidacy, it feels like an elected official trying to appoint someone to the board,” he said.

Elsewhere, outside organizations have poured money into down-ballot school elections, making them proxy votes for controversial national issues. During Los Angeles’ 2017 board races, unions and pro-charter school groups spent $15 million.

In Chicago, charter schools groups are already getting involved.

Paul Vallas, a former superintendent and failed candidate for Chicago mayor, started a political action committee that could back candidates. Parents advocating to restore school bus service, which the district cut amid driver shortages, hosted the first candidate forum.

“The wild card in all of this is: Will there be national issues that are tangentially related that will bleed into the race?” asked Michael Ford, a University of Wisconsin-Oshkosh professor.

District officials have offered few details about how the board will operate. One thing raising eyebrows is its size.

“They are creating conditions for a lot of political infighting, more opportunities for deal brokering, things that have been synonymous with Chicago politics,” said Jonathan Collins, a Columbia University political scientist.

Los Angeles has seven board members while Houston has nine. In New York, the panel is partially appointed and recently increased from 15 to 23.

Illinois state Sen. Rob Martwick, who championed an elected board, said more districts were created to curb the influence of outside money. More legislative changes could follow, including campaign finance and board pay.

“Now the responsibility of making our schools better is in your hands, can’t blame the mayor anymore,” Martwick said. “Look in the mirror.”